Bitcoin evangelist Michael Saylor explains how a Bitcoin reserve or crypto reserve could be in the interest of the American people.
Following President Donald Trump’s election victory, a major focus for the crypto community has been his promise to launch a strategic Bitcoin stockpile… or reserve? (Depending on who you ask, these are two different things).
Over the weekend, this promise again came to the fore as the president reiterated his intentions to launch this reserve and confirmed speculation that he intends to include other assets besides Bitcoin.
Trump’s crypto reserve plans have sparked a lot of questions within and outside the crypto community, but perhaps none as important as why it is in the interest of the American people.
A Solution to the U.S.’s Debt Problem?
Speaking with CNBC Television on Monday, March 3, Strategy Chairman and Bitcoin evangelist Michael Saylor suggested that a crypto reserve, especially a Bitcoin reserve, could serve U.S. interests in at least one significant way: clearing the U.S. national debt.
Saylor argued that this was possible if the U.S. purchased “up to 10%-20% of the Bitcoin network,” likely referring to 10%-20% of the asset supply, citing his projected trajectory of Bitcoin’s growth.
Specifically, the Strategy chairman expressed confidence that the asset will eventually hit a market cap of $200 trillion.
“Right now we’re about $2 trillion in Bitcoin. It’s going to $20 trillion, then it’s going to $200 trillion, then it’s growing 20% a year,” he asserted.
Saylor said this as he stressed that Bitcoin was not competing with the dollar but with global investments like international real estate, with capital flowing in from everywhere, including Asia, China, Russia, and Africa.
The Strategy Chair compared a direct U.S. Bitcoin investment to the country’s purchase of Manhattan and Alaska.
“We bought Manhattan for 60 guilders. It was a good trade. We bought Alaska for 6 million bucks. It was a good trade. We paid $40 million for 75% in this country. It’s a good trade. We can afford it. We should buy the future,” he surmised.
Meanwhile, beyond Bitcoin, he asserted that the broader digital asset ecosystem is worth $100 trillion to the U.S.
It is not the first time someone has floated the idea of using Bitcoin to clear the U.S. national debt. Trump flirted with the idea on the campaign trail. Still, the mechanics of how exactly this would work are unclear as the U.S. has a federal debt of $36.22 trillion at the time of writing.
While an answer to this query remains a head-scratcher, crypto industry participants and neutral observers can perhaps hope for clarity on other questions like how the crypto reserve assets will be purchased in the first-ever White House crypto summit slated for Friday, March 7.