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Title: Why Strategic Bitcoin Reserves Could Be a Game Change
The United States’ decision to establish a strategic Bitcoin reserve has garnered significant attention within the cryptocurrency community. Recently, CryptoQuant CEO and founder Ki Young Ju shared his thoughts on the matter through a post on the X platform. He argued that using Bitcoin to offset the country’s debt is a feasible approach and suggested that doing so could potentially reduce domestic debt by 36%.
Young Ju based his argument on the observation that over the past 15 years, $790 billion in realized capital inflows have contributed to Bitcoin’s market cap reaching $2 trillion. He further noted that this year alone, $352 billion in inflows have increased Bitcoin’s market cap to $1 trillion. The CryptoQuant founder suggested that if the U.S. government were to acquire 1 million BTC by 2050 and designate Bitcoin as a strategic asset, they could potentially reduce their domestic debt by 36%, which amounts to 70% of the country’s total debt.
While acknowledging the potential challenges associated with creditors’ acceptance, Young Ju argued that establishing a strategic Bitcoin reserve could serve as a “symbolic first step” towards legitimizing Bitcoin globally, similar to how assets like gold have gained international recognition. He also highlighted the possibility of old whales dumping their BTC to protest against the U.S. government, but asserted that such an eventuality might be unlikely due to the continued growth of Bitcoin’s value.
As of now, the price of BTC stands at around $97,000, reflecting a 0.4% decrease in the past 24 hours according to data from CoinGecko. Despite this minor dip, the premier cryptocurrency has experienced a 3.6% decrease in value over the past week.
Source: www.bitcoininsider.org
Young Ju based his argument on the observation that over the past 15 years, $790 billion in realized capital inflows have contributed to Bitcoin’s market cap reaching $2 trillion. He further noted that this year alone, $352 billion in inflows have increased Bitcoin’s market cap to $1 trillion. The CryptoQuant founder suggested that if the U.S. government were to acquire 1 million BTC by 2050 and designate Bitcoin as a strategic asset, they could potentially reduce their domestic debt by 36%, which amounts to 70% of the country’s total debt.
While acknowledging the potential challenges associated with creditors’ acceptance, Young Ju argued that establishing a strategic Bitcoin reserve could serve as a “symbolic first step” towards legitimizing Bitcoin globally, similar to how assets like gold have gained international recognition. He also highlighted the possibility of old whales dumping their BTC to protest against the U.S. government, but asserted that such an eventuality might be unlikely due to the continued growth of Bitcoin’s value.
As of now, the price of BTC stands at around $97,000, reflecting a 0.4% decrease in the past 24 hours according to data from CoinGecko. Despite this minor dip, the premier cryptocurrency has experienced a 3.6% decrease in value over the past week.
Source: www.bitcoininsider.org
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