The U.S Will Likely Buy $100 Billion in Bitcoin Soon, Says Sebastian Bea, President of Coinbase Asset Management
Rumors are sinking that the US government can prepare to produce a major movement of Bitcoin, which potentially invest by up to $ 100 billion. While it might sound like a bold idea, Sebastian Bea, president of Coinbase Asset Management, argued that it wasn't far from apparently.
In a recent -only interviewBea explained how a small change in accounting could unlock enough amounts for the government to invest in Bitcoin, all without increasing national debt or printing new money.
Re -review gold can unlock $ 100 billion for Bitcoin
Currently, US gold reserves are still listed at the 1973 price of $ 42.22 per ounce, despite the gold today that trades more than $ 3,300 per ounce. The difference -it leaves a nearly $ 900 billion gap between the value of the gold book and the true value of the market. Bea suggests that a simple law update to show the true amount of gold can open the door to a significant financial benefit.
How bitcoin fits the plan
The key to doing this work is to amend 31 USC § 5117, which will allow the US Treasury to issue a higher amount of gold certificates. It can effectively create a sovereign wealth fund, along with the capital used to buy Bitcoin. Bea's approach is aligned with the suggested Bitcoin Act from Senator Cynthia Lummis, who has called on the US Treasury to buy one million Bitcoin for five years – without the addition of federal deficiency.
The implications of such a move will be huge. Buying 5.5% of the Bitcoin market cap will send shockwaves through the global market, which potentially motivates other governments to follow the suit as they look to remain competitive in an increasingly digital world.
Can this happen as soon as possible?
While Bea did not set a specific timeline, she suggested that the US could make this move as soon as 2025 if the political momentum was correct. With the current hovering of Bitcoin around $ 94,000, a US investment on this scale could push the cryptocurrency price even higher, setting the stage for a new period of Bitcoin adoption of the country states.
The path to a US Bitcoin Reserve may be shorter than we think – especially if Congress decides to make a small but strong legislative change. The potential effect? A huge new chapter for Bitcoin and its place in the global economy.
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FAQs
The US government can invest in Bitcoin by revising its gold reserves, which will open up significant capital. This method avoids the need to print new money or increase debt.
Similar to how central banks increased gold purchases last year, other governments could follow US leading in investment in Bitcoin to remain competitive in a digital-first economy.
A strategic Bitcoin reserve refers to a major bitcoin accumulation of a government or institution, treating it as an asset reserves similar to gold or foreign currency. It can be used to stabilize the economy or strengthen national financial security.
