Story Highlights
-
The adoption of Bitcoin at the state level will likely happen before the federal government enacts legislation on the same.
-
The cash inflow into Bitcoin will likely not circulate to the altcoin industry due to the notable L2 developments on BTC and higher demand from institutional investors.
Following the historic victory of Donald Trump as the next POTUS last month, the mainstream adoption of Bitcoin (BTC) and digital assets has gained significant traction. The upcoming US president promised to launch a strategic national Bitcoin stockpile, which will add to the existing BTC holdings.
The creation of a strategic Bitcoin reserve in the United States will kickstart a global movement, which will heighten the overall demand. Furthermore, more countries around the world have a debt-to-GDP ratio of more than 100 percent, led by Japan and the United States, which is not sustainable in the long haul.
US Strategic Bitcoin Reserve
According to Denis Porter, the CEO and co-founder of Satoshi Action Fund, there is a high chance that strategic Bitcoin reserve legislation will pass at the state level before the upcoming Trump administration gets to implement a similar policy. However, Porter noted that Trump could issue an executive order in the first week he gets into office, which could give the federal government a head start.
I can now officially confirm and announce that 10 states will be introducing ‘Strategic Bitcoin Reserves’ legislation here in the great United STATES of America.
We are going to win with Bitcoin. We will lead the world. No one will come close. The word will follow our lead.
— Dennis Porter (@Dennis_Porter_) December 3, 2024
Already, Porter confirmed that 10 different states in America have already laid out plans to introduce a strategic Bitcoin reserve. To facilitate the legislation process, Porter has requested the crypto community to donate to the Satoshi Action Fund.
Meanwhile, Bitcoin critic Peter Schiff has cautioned crypto investors to keep their hopes low on the strategic BTC reserve. Furthermore, Schiff believes that the bill has no huge support other than Senator Cynthia Lummis and Ro Khanna.
Impact on BTC Price
I am more and more convinced that one day it will be virtually impossible to buy Bitcoin. We are painfully early.
— Dennis Porter (@Dennis_Porter_) December 2, 2024
The imminent adoption of Bitcoin by nation-states, amid the ongoing mainstream adoption by institutional investors, will trigger a huge demand vs supply shock. As a result, Porter is of the opinion that it will be virtually impossible to purchase Bitcoin in the future.
In the meantime, Bitcoin price will eventually continue with the bull run beyond $100k.