- President Elect Trump supporters to propose a Gold vs Bitcoin expects a Bitcoin reserve as promised
- El Salvador’s use of Bitcoin is being considered as a guide for the U.S. plan.
Gold vs Bitcoin is a never ending game, Trump supporters in the U.S. Senate have proposed selling part of the Federal Reserve’s gold to purchase Bitcoin (BTC) which created comparison of Gold vs Bitcoin among the investors. The plan focuses on building a national Bitcoin reserve without increasing the government’s deficit.
A Strategic Bitcoin Reserve Plan
Wyoming Senator Cynthia Lummis, a strong supporter of Bitcoin, is behind this plan. She intends to present a bill called the Bitcoin Reserve Act when the new Congress begins. This bill aims to establish a national Bitcoin reserve, allowing the United States to hold a major amount of BTC as part of its financial approach.
The proposal suggests acquiring 1 million Bitcoins, about 5% of the total supply. The purchase would be funded by selling some of the Federal Reserve’s gold, avoiding the need for new loans or increasing the national debt.
Why Gold vs Bitcoin
The recent market sentiment is facing a situation of gold vs bitcoin after the election results. The plan to sell gold for Bitcoin comes from ongoing discussions about updating national reserves. Supporters believe Bitcoin, being a decentralized digital asset, can act as a safeguard against inflation and economic instability. They see it as similar to gold but more versatile for the digital age. This strategy, they suggest, could improve the country’s financial stability and lessen reliance on traditional assets like gold. So would be comparing Gold Vs Bitcoin which would be a reserve asset.
(adsbygoogle = window.adsbygoogle || []).push({});Buying 1 million Bitcoins at today’s prices would cost around $90 billion. However, this cost could go up if the bill is approved and investors start buying Bitcoin before the government does, which might increase its price.
Senator Lummis believes this plan is important, as a Bitcoin reserve could help reduce part of the national debt and improve the country’s financial future. She has taken ideas from El Salvador, a country that uses Bitcoin as legal currency and holds over 5,000 BTC.
Lessons from El Salvador
El Salvador’s use of Bitcoin is being considered as a guide for the U.S. plan. While the country has faced some difficulties, adopting Bitcoin has also brought advantages like better financial access and more global attention. The Bitcoin Reserve Act aims to build on these lessons to create a stronger plan for the U.S. at the federal level.
The Bitcoin Reserve Act is expected to be reviewed by Congress in 2025. If passed, it could lead to a major change in how the U.S. handles its reserves, shifting from gold to Bitcoin as a main asset. This plan shows the increasing acceptance of Bitcoin as an important part of today’s financial strategies.
(adsbygoogle = window.adsbygoogle || []).push({});Conclusion
His plan to sell gold and buy Bitcoin puts the “gold vs BTC” discussion at the center of U.S. financial decisions. Not only him many institutional investors are making a decision over it. Led by Senator Lummis, the idea of a Bitcoin reserve could change how the country handles economic challenges. Whether it will gather enough support is uncertain, but it raises important questions about the role of digital assets in national reserves.
Also Read : MicroStrategy Bitcoin plan of acquiring 27,200 $BTC for $2.03B
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