Marathon Digital urges US to adopt Bitcoin reserve in open letter

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As a seasoned crypto investor with over a decade of experience navigating the volatile digital asset landscape, I find Marathon Digital Holdings’ open letter to be a compelling call for action. The shifting global financial landscape requires nations to adapt and innovate, and Bitcoin, with its unique characteristics of finite supply, decentralization, and growing importance as both a store of value and medium of exchange, presents an opportunity that should not be overlooked.

Marathon Digital Holdings has penned a public appeal, advocating for the U.S. government to create a strategic Bitcoin investment portfolio.

The open letter outlined why Bitcoin (BTC) and its mining infrastructure are vital to maintaining economic and geopolitical stability in a shifting global financial landscape.

The letter highlights Bitcoin’s finite supply, its decentralized nature, and its growing importance as a store of value and medium of exchange. Marathon compared Bitcoin to gold, arguing that while gold has historically served as a reserve asset, it is becoming less effective in the digital era due to its inefficiencies in global transactions and auditing. 

As Senator Lummis’s Bitcoin Act approaches, it’s crucial for the United States to take the lead in mining operations, blockchain capacity, and hashrate to ensure that every nation maintains its own independence – as stated by @fgthiel. Learn more here: [Link]

— MARA (@MARAHoldings) November 26, 2024

According to the company’s suggestion, Bitcoin stands out due to its exceptional mobility and expandability, positioning it as a potentially stronger reserve choice for future use.

Marathon, an American firm, focuses on eco-friendly Bitcoin mining. Their mission is to boost and improve the Bitcoin network by augmenting its computational abilities using sustainable practices. Currently, they own about 33,875 Bitcoins as of November 24.

Bitcoin reserve popularity 

As an analyst, I find myself compelled to echo Marathon’s recent call for action, given the surge of worldwide attention towards Bitcoin reserves. This call is in response to Senator Cynthia Lummis’s proposal, dubbed the Bitcoin Act, which advocates for the U.S. government to potentially acquire up to a million Bitcoins over the next five years. It’s important to note that our nation currently holds around 200,000 Bitcoin, a figure that lags behind other nations such as China, which reportedly has approximately 190,000 Bitcoin in its reserves.

The letter underscored the significance of the setup for Bitcoin mining, aside from just its reserves. This process involves verifying transactions and maintaining the security of the Bitcoin network through the use of computational power, referred to as hashrate.

Marathon posits that having a substantial portion of the worldwide computational power (hashrate) is essential for maintaining “sovereignty over transactions,” a safeguard that shields countries from outside influence during financial transactions.

Marathon’s six-step plan

In a letter, Marathon proposed a six-point strategy for the U.S., which encompasses:

American policymakers ought to acknowledge Bitcoin and Bitcoin mining as essential elements in our country’s monetary and geopolitical roadmap. In a similar vein to how the U.S. has historically been at the forefront of gathering gold reserves, it is crucial that we now take a leading role in this burgeoning field.

Marathon Digital

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2024-11-26 20:44