Michael Taylorco-founder and CEO of MicroStrategy (NASDAQ:MSTR), declared on Monday that the incoming administration of donald trump will take seriously the creation of a strategic reserve of Bitcoin (CRYPTO:BTC).
What happened
During an interview with CNBC, Saylor stressed the importance of “buying the future” if you know where the money is going.
“All the capital outside the United States and all the obsolete capital of the 20th century will flow into digital assets and the Bitcoin network,” said the Bitcoin bull. “The logical thing for the United States is to buy it now and own the future.”
He added that the government could buy up to 20-25% of the Bitcoin network by selling its gold reserves or borrowing a “small” amount of money.
“The Bitcoin network will multiply by 100. You better buy it first.”
Saylor also urged the incoming administration to take the lead in establishing a digital asset framework, outlining clear definitions on the various entities and setting out the responsibilities of participants.
Why is it important
Saylor’s remarks come amid reports that President-elect Trump is exploring the possibility of issuing a executive order to create a strategic reserve of Bitcoin.
Last week, he also pledged to “do something great with cryptocurrencies” when asked about his plans to accumulate Bitcoin shares domestically.
The senator Cynthia Lummis (Republican – Wyoming) has already proposed a bill, called BITCOIN Actto create a strategic reserve in Bitcoin to support the United States’ balance sheet and address its growing debt, which reached $36 trillion this year.
The bill outlines a program to purchase 1 million BTC, approximately 5% of the total Bitcoin supply, over a five-year period, with a minimum holding period of 20 years.
Buying this ratio could give an additional boost to Bitcoin, which has already seen unprecedented growth. This in turn could give more volatility to MicroStrategy stock, which acts as a proxy for Bitcoin.
Bitcoin price movement
At the time of writing, Bitcoin was trading at $106,604.85, up 1.80% over the past 24 hours, according to data from Benzinga Pro.
Photo courtesy of Shutterstock
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