What a huge day today has been.
Gary Gensler officially announced who will leave his position as chairman of the Securities and Exchange Commission (SEC), and minutes later, Reuters reported that Donald Trump’s “crypto council” is expected to “establish Trump’s promised bitcoin reserve.” A reserve of bitcoins, which would cause the United States to purchase 200,000 bitcoins per year, for five years until it has purchased 1,000,000 bitcoins.
Immediately after both, Bitcoin continued its upward momentum and bankrupt $99,000, and $100,000 look like they could happen at any time.
It’s hard to contain my optimism thinking about the United States buying 200,000 BTC per year. Basically, they have to compete with everyone else in the world who is also accumulating bitcoins and trying to lead them. There are only 21 million bitcoins and that is a LOT of demand.
To put this in context, so far this year, US spot bitcoin ETFs have accumulated a combined total of over 1 million BTC. At the time of launch, the price was ~$44,000 and now bitcoin is practically at $100,000. And that’s all the ETFs combined. Imagine what will happen when a single entity wants to buy a total of 1 million coins and has to compete with everyone else who is also accumulating large amounts.
I mean MicroStrategy literally just finished another increase of $3 BILLION to buy more bitcoins, and will continue to increase until buying $42 billion more in bitcoins. The United States will most likely buy its coins (if this legislation officially becomes law) at very high prices. The demand is crazy and will only increase for the foreseeable future.
With two months left until Trump officially takes office, it remains to be seen if this bill becomes law, but so far things are looking really good. As Senator Cynthia Lummis stated, “This is our Louisiana Purchase moment!” and it would be an absolutely historic moment for Bitcoin, Bitcoiners, and the future financial dominance of the United States of America.
This is the solution.
This is the answer.
This is our Louisiana Shopping moment!#Bitcoin2024 pic.twitter.com/RNEiLaB16U
— Senator Cynthia Lummis (@SenLummis) July 27, 2024
This article is a Carry. The opinions expressed are entirely those of the author and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
