Michael Saylor Proposes U.S. Bitcoin Reserve Strategy

- U.S. Bitcoin Reserve Strategy: MicroStrategy CEO Michael Saylor's Optimistic Outlook - Potential Risks to the U.S. Economy Arising from Bitcoin Reserve Strategy Raised [Unblock Media] We explore the strategy behind the U.S. accumulating Bitcoin. Currently, the U.S. holds about 200,000 Bitcoins. MicroStrategy CEO Michael Saylor is suggesting surpassing this amount of Bitcoin accumulation. According to his analysis, this could bring enormous benefits to the U.S. economy. Saylor recently purchased an additional 27,200 Bitcoins, increasing MicroStrategy's total holdings to 279,420. As a result, MicroStrategy's stock price soared by over 25%, hitting its highest level in 24 years. Additionally, as the price of Bitcoin surged past $87,000, increasing by more than 9%, MicroStrategy’s stock price also rose in tandem. Saylor argues that holding Bitcoin at a large scale is one of the best ways to safeguard the U.S.'s financial status. Instead of reducing debt and becoming wealthier, the U.S. could use Bitcoin as a safe asset. This could help solve the central bank's astronomical debt issues. However, CNBC warns that Bitcoin’s volatility can pose significant risks to investors, and large-scale holdings by central banks or national governments could entail additional risks. Wired reported that comparing Bitcoin to tangible assets like purchases in New York Manhattan, Louisiana, California, and Alaska ignores the fundamental differences between digital assets and physical assets, stating that these comparisons are mere metaphors. They also emphasize that Bitcoin's volatility gives it different characteristics from these historical assets. Saylor explains that historically, the U.S. has made strategic purchases that resulted in massive profits. For example, purchasing New York Manhattan, Louisiana, California, and Alaska in the 19th century brought immense value, amounting to trillions of dollars. In this historical context, accumulating Bitcoin can also be viewed as a similar strategic investment. If Senator Cynthia Lummis's bill passes, the U.S. plans to increase its Bitcoin holdings to 1 million over the next five years. Saylor sees a high possibility of this bill passing and argues that if the Republicans gain a majority in the Senate and House, the chances will be even higher. In this scenario, the U.S. could see a profit of around $16 trillion. Furthermore, under a 'Trump Max' scenario, if the U.S. purchases 4 million Bitcoins, it could potentially profit $81 trillion. However, regarding the feasibility of this plan, The Guardian analyzes that a national plan to purchase volatile assets like Bitcoin could be politically contentious, with significant differences in opinion even within the Republican party. If the bill does not pass, such plans may not last long. Bloomberg reports that if the U.S. makes large-scale Bitcoin purchases, other countries like China or Russia may respond by strengthening their own digital asset strategies, potentially creating tension in global financial markets.