The Strategic Move of Buying 1 Million Bitcoin Will Work for the US

Bitcoin has been at a record high in the last few weeks, crossing the mark of a hundred thousand dollars. The recent progress in Bitcoin and the enthusiasm in the crypto industry has made the president of the United States announce that they will create the country as the world’s Bitcoin reserve.

It’s making the plan to execute the purchase of 1 million Bitcoins, and through that, the country can have the power to retain the value of the item and become the largest proponent to hold this financial asset.

This has created enough noise in the crypto market as the largest economy in the world is bullish on the asset, and that creates an opportunity for everyone to hold the asset and take part in this rally.

In this blog, we will look into the strategic idea behind the purchase of Bitcoins and whether or not it can help the country to be in an advantageous position in the future or will be a waste of the government’s reserve.

What is the Rationale Behind the Strategic Reserve?

The rationale behind the strategic reserve idea is that one needs to have leverage over one such asset that can give some power to the one who is holding it. As the world is shifting towards more new financial assets and for that, the risk of blockchain-based equipment is flooding the market, here, Bitcoin can play a key role.

During the oil crisis of 1973-74, the country faced a severe shortage of crude oil as the Saudis stopped the supply of oil, which raised the price to an astronomical level, and the people of the US withstood the burnt of that crisis.

As the country focuses more on building reserves, there will be the setup of the crypto tax firm and that will help the businesses to navigate the space, and investors will also have clarity about the asset class.

How will the Bitcoin Reserve of the US Function?

The crypto market is very volatile, and the US can make this move to bring stability to the market and give investors some financial relief. With this plan, the government is planning to invest around twenty-one billion dollars, and through that, they can hold the currencies and have announced the plan for holding them for the next twenty years.

Checking the Benefits of Keeping a Reserve

The Federal Reserve is planning to increase the stake and aim to give it the same importance as the gold reserve, which can work as the financial backbone of the nation. The main idea of holding Bitcoin is that the government is planning to reduce the nation’s debt pile with the returns that will be generated from the Bitcoin investment.

There are tax lawyers in Los Angeles and other states who are voicing how it can bring certain changes in the crypto space of the country and how the government is planning to introduce a Bitcoin Act that will define the domain with clearer terms.

These are some of the plans that the government is trying, and through that it can make the strategic move of increasing transparency and generating value in the crypto space.