Emily Walker
Two influential figures in the cryptocurrency world—Michael Saylor from MicroStrategy and Wyoming’s Sen. Cynthia Lummis—are advocating for the establishment of a Bitcoin reserve.
In a recent CNBC interview, Saylor reiterated his optimistic view on Bitcoin, suggesting that forming a reserve of 1 million Bitcoins could potentially reduce the US national debt by $16 trillion, which is about 45% of the total debt.
Prior to Saylor’s comments, Rep. Lummis proposed a bill intended to boost the nation’s digital asset reserves. This bill outlines a plan for the US government to acquire up to 1 million Bitcoins over a span of five years.
Both Saylor and Lummis are confident that including Bitcoin in the reserves could play a crucial role in addressing the national debt crisis.
Saylor Proposes Bitcoin as a Debt Reduction Strategy
During his interview, Saylor emphasized the importance of accumulating 1 million Bitcoins, explaining that such a reserve could lead to a significant $16 trillion reduction in national debt, equating to a 45% decrease. He also revealed MicroStrategy’s ambition to raise $42 billion to invest further in Bitcoin.
Bitcoin is Manifest Destiny for the United States. My discussion of The Red Wave, MicroStrategy’s $42 Billion Plan, the compelling logic of the Strategic #Bitcoin Reserve, and getting ready for the 100K party, with @MorganLBrennan. pic.twitter.com/fvkwRnCzlU
— Michael Saylor (@saylor) November 14, 2024
Saylor is optimistic about the idea of a strategic Bitcoin reserve for the nation, which he believes will be reinforced by a detailed plan soon. His positive outlook is partially influenced by former President Donald Trump’s endorsements of the cryptocurrency space.
During a Bitcoin conference in Nashville back in 2024, Trump, then a candidate, vowed to create a Treasury reserve featuring 200,000 Bitcoins. In a tweet, Saylor expressed that Bitcoin represents the “manifest destiny” of the United States, hinting at his company’s ambitious plan and the prospect of reaching $100,000 for Bitcoin.
Lummis and Her Bitcoin Initiative
Senator Lummis is among the staunch advocates for crypto within the Senate. Earlier this year, she introduced a bill aimed at increasing the digital asset reserves held by the US government. This initiative includes plans for the government to purchase up to 1 million Bitcoins within five years. Recently, Lummis suggested selling some of the US central bank’s gold to facilitate more Bitcoin acquisitions.
If the proposed legislation passes, Saylor estimates this could lead to $16 trillion in savings for the US government. He believes that the most effective way to safeguard the US dollar is to eliminate debt, with ownership of other capital assets—like Bitcoin—being the next logical option.
Saylor Discusses the ‘Trump Max’ Strategy
Saylor pointed out that acquiring strategic assets is a familiar strategy for the US government, as it has previously purchased oil, gold, helium, and grains that yielded trillions in returns.
He elaborated on the “Trump Max” scenario, where the government would acquire as many as 4 million BTC. Saylor forecasts that this could provide $81 trillion in potential returns, asserting that this approach is a highly rational method for tackling the US debt challenge.
Image courtesy of CNBC, chart via TradingView