What happened
Matt HuangCEO of Paradigm — an investment firm focused on cryptocurrencies — published a blog post on Thursday, highlighting the growing prominence of Bitcoin.
Huang maintained that, just as gunpowder became indispensable after its discovery, the same will happen with emerging technologies such as artificial intelligence, drones and Bitcoin.
“Sovereigns can no longer afford to ignore BTC. From a game theory perspective, BTC is like wildfire, not the iPhone,” the analyst commented.
Bitcoin for the Sovereign pic.twitter.com/HD1UpcD6J7
— Matt Huang (@matthuang) November 14, 2024
Huang highlighted how calls to establish a strategic Bitcoin reserve have intensified since the presidential victory of donald trumpsuggesting that the Overton window for Bitcoin acceptance in the United States is opening.
“Sovereigns that build BTC reserves early will benefit from significantly better entry prices. The race to build BTC reserves has begun.”
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Why is it important
The Republican Party vigorously promoted the idea of a Bitcoin reserve ahead of the election, with President-elect Trump himself promising to establish one if elected.
A few days later, the senator Cynthia Lummis (R-Wyoming) proposed a bill, called the BITCOIN Act, aimed at creating a strategic reserve of Bitcoin to support the United States’ balance sheet.
The senator reiterated her commitment after the Republican Party’s electoral victory last week, while the odds in Polymarket show a 31% chance of this happening.
Additionally, encouraged by increased support, Pennsylvania introduced the Strategic Bitcoin Reserve Act, hoping to build its own state Bitcoin reserve.
Bitcoin price movement
At press time, Bitcoin was trading at $89,181.41, down 2.30% over the past 24 hours, according to data from Benzinga Pro.
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