Ari Paul: US Bitcoin Strategic Reserve Unlikely in 4 Years

by

As a seasoned financial analyst with extensive experience in the digital currency space, I share Ari Paul’s skepticism regarding the US government adding Bitcoin to its strategic reserve in the near future. Based on my understanding of government decision-making processes and the nature of strategic reserves, such a move appears unlikely at this time.

Ari Paul, the CIO of BlockTower Capital, thinks it’s highly unlikely that the US government will add Bitcoin to its strategic reserves in the next four years. He shared this perspective in a post on X, published on July 18.

Paul admitted that while Trump might make such comments, the practicality of carrying out the action is doubtful. Nonetheless, this declaration from Trump could potentially increase Bitcoin’s value in the interim period. “It’s quite likely that Trump would make this statement, which would be highly beneficial for Bitcoin’s price in the short term,” he stated.

Paul pointed out that if the next president indicates they won’t sell the government’s existing Bitcoins, it doesn’t automatically signify the creation of a strategic reserve. He pondered over what constitutes an official declaration, adding “Is it a casual comment from Trump? An executive order?”

As a analyst, I would express it this way: I analyze the role of governments in managing natural resource supplies during crises. The United States is one such government that keeps a substantial emergency stockpile of crude oil called the Strategic Petroleum Reserve (SPR). This reserve serves as a crucial backup to mitigate potential oil shortages.

Paul’s remarks follow rumors that Trump may unveil plans to establish Bitcoin as part of the US national reserves if he secures another term. This notion was brought up by Simon Dixon, BnkToTheFuture’s founder, in a July 18 update, suggesting “Trump to reveal an American Bitcoin reserve in Nashville.”

Dennis Porter, the CEO of Satoshi Act Fund, expressed a similar opinion, advocating for the establishment of a Bitcoin strategic reserve as an unavoidable measure. Michael Goldstein, president of the Satoshi Nakamoto Institute, further emphasized this viewpoint by stating, “Everyone, including you, your family, your business, your city, your state, and your country, should consider having a Bitcoin reserve for strategic purposes.”

Entrepreneur Mark Cuban’s theory is that geopolitical turmoil and rising inflation could lead Bitcoin to be adopted as a global reserve currency.

Read More

2024-07-20 07:32