Saylor Proposes U.S. Buy 20% Bitcoin

Strategy Founder Michael Saylor has proposed a bold initiative, suggesting that the U.S. government should consider purchasing 20% of the Bitcoin supply. Speaking at the annual CPAC conference, Saylor argued that such a move would strengthen the U.S. dollar and prevent other nations from acquiring a significant portion of the Bitcoin network.

Saylor's remarks come amidst a growing interest in Bitcoin reserves among U.S. states and the federal government. In Utah, a bill mandating a state Bitcoin reserve has received a favorable recommendation from the state's Senate Revenue and Taxation Committee. Additionally, President Donald Trump recently signed an order establishing a working group to explore the possibility of a federal Bitcoin reserve.

Saylor emphasized that the U.S. government could acquire 20% of Bitcoin's supply relatively easily, given its ability to issue an indefinite supply of dollars via Treasuries. Currently, the U.S. government holds around 183,422 BTC, while the British government owns 61,245 BTC. Meanwhile, Saylor's firm, Strategy, holds over 430,000 BTC, making it the largest Bitcoin holder among publicly traded companies worldwide.

Saylor's proposal has sparked debate among crypto enthusiasts and skeptics alike. While some observers are skeptical that a national Bitcoin reserve will ever become a reality, others question the potential benefits and risks of such a move. David Gerard, a longtime crypto skeptic, argues that Saylor's advocacy for U.S. government price support for Bitcoin is misguided, as there is no plausible reason for the U.S. to benefit from acquiring a significant portion of the Bitcoin supply.

Christian Catalini, founder of the MIT Cryptoeconomics Lab, has also expressed doubts about the feasibility and wisdom of a national Bitcoin reserve. In a blog post for the OMFIF think tank, Catalini argues that Bitcoin does not meet the necessary criteria for a reserve asset and that stockpiling Bitcoin could potentially harm the U.S. dollar's status as the world's reserve currency.

As the debate surrounding Bitcoin reserves continues, Saylor's firm, Strategy, has been actively accumulating Bitcoin on a regular basis. Some critics, such as David Gerard, suggest that Saylor's comments and the firm's Bitcoin accumulation strategy may be more about providing credibility for its current business model, which involves leveraging Bitcoin into a proxy for dollars to facilitate insider