Michael Saylor encouraged the United States to obtain 20% of the Bitcoin network to improve its economy and hedge against global competition.
Utah is on the verge of becoming the first US state to recognize Bitcoin as a reserve asset, with the HB230 measure moving through the Senate. Montana is also pursuing similar legislation to incorporate Bitcoin and other assets in a special reserve fund.
Bitcoin Is America’s Best Financial Weapon
Michael Saylor, the creator of Strategy, is a big believer in the need for the United States establishing a strategic Bitcoin reserve and has stated that America should strive to acquire 20% of the Bitcoin network. At the CPAC conservative movement conference in Washington, D.C., Saylor argued that only one nation-state could practically acquire such a substantial piece of the network, and he believes it should be the United States. He said that with a large Bitcoin reserve, the country would strengthen its currency, profit itself, and maybe utilize its assets to pay off the national debt.
Saylor also highlighted some of the disadvantages of letting other global powers take the lead in Bitcoin accumulation, warning that the United States should act before countries such as Saudi Arabia, Russia, China, and Europe embrace the chance. At current market pricing, purchasing 20% of Bitcoin’s circulating supply will cost around $392 billion. To put this in context, the US Strategic Petroleum Reserve has over 395 million barrels of oil worth an estimated $29 billion, making Bitcoin a significantly greater financial commitment.
When asked about including other cryptocurrencies in a future US reserve, Saylor avoided naming any digital asset other than Bitcoin. He believes in Bitcoin’s unique status as a decentralized commodity without an issuer, emphasizing its resistance to corruption by any institution. He also claimed that Bitcoin achieved “escape velocity,” cementing its domination in the digital asset industry.
During the debate, Saylor also discussed the competitive hurdles that businesses face when competing with monopolistic digital giants. He saw Bitcoin’s decentralized nature as a revolutionary break from established power structures, providing consumers and small businesses with unparalleled financial empowerment. He commended Satoshi Nakamoto for developing a system that allows people to acquire economic strength independent of the state.
Strategy
The strategy became the largest business holder of Bitcoin, acquiring 478,740 BTC worth nearly $47 billion. The firm’s Bitcoin portfolio produced outstanding returns, with an average acquisition price of $65,000 per coin. This yielded a 51% profit, or almost $16 billion. Furthermore, this deliberate Bitcoin accumulation boosted Strategy’s stock price by 360% in the last year.
Saylor also discussed the overall change in global financial flows, noting that wealth is progressively moving from the real world to cyberspace. He viewed the shift as one from twentieth-century financial institutions to a digital economy dominated by artificial intelligence and high-speed computing.
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