Bitcoin Price Could Surge 10000% If US Buys 1 Million BTC

Zach Shapiro, the head of policy for the Bitcoin-focused Bitcoin Policy Institute (BPI) think tank, proposed a scenario where the United States' purchase of 1 million Bitcoin (BTC) could drive the price of Bitcoin to $1 million per coin. This discussion took place during a Bitcoin Magazine podcast, where Shapiro highlighted the potential seismic impact of such a large-scale acquisition on the global economy.

Shapiro's argument is based on the potential impact of the Bitcoin Act, which proposes that the U.S. government acquire 1 million BTC, equivalent to 5% of the total BTC supply, over a period of five years. The funds for this acquisition would come from the revaluation of gold. Shapiro believes that such a large-scale purchase by the U.S. government would have a seismic impact on the global economy. The aggressive monetization of Bitcoin could lead to a series of second-order effects, including a significant increase in Bitcoin's price. He predicts that the announcement alone could cause Bitcoin’s price to soar to $1 million per coin.

This dramatic shift would not go unnoticed by other nations, as central banks and financial institutions worldwide would likely adjust their strategies in response to Bitcoin’s rapid monetization. As Bitcoin gains recognition as a credible store of value, traditional assets like gold may lose some of their appeal, leading central banks to increase their Bitcoin holdings and further driving up its price.

Beyond the direct impact on Bitcoin’s price, Shapiro also discussed the broader economic implications of such a large acquisition. As Bitcoin’s value rises, the U.S. federal government’s balance sheet would benefit significantly. Many private sector entities, including Bitcoin miners and companies, would see rapid wealth accumulation. This wealth generation could have broader effects on global trade and power dynamics, with the U.S. potentially consolidating even more economic influence.

Matthew Pines, the executive director of BPI, echoed Shapiro's sentiments, stating that other nations are closely watching how the U.S. positions itself with Bitcoin before formulating their own strategies. Pines suggested that holding more Bitcoin aligns with Trump’s promise to make the U.S. a Bitcoin superpower.

Pines also proposed ways to acquire Bitcoin in a budget-neutral fashion. He suggested using tariff revenues to buy Bitcoin and other potential ways for the U.S. government to purchase more BTC. This could include royalties from oil and gas leases, sales of federal land, physical gold, and other digital assets.

On March 12, Senator Cynthia Lummis reintroduced the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act to push U.S. holdings above 1 million BTC. This act aims to expand the reserve without additional taxpayer burden, aligning with Trump’s executive order that directs the Treasury and Commerce secretaries to develop “budget-neutral” strategies for acquiring more Bitcoin.