A prominent US lawmaker has urged the country to seriously consider diversifying its national balance sheet, advocating for the inclusion of Bitcoin (BTC) as part of the strategy. Representative Nick Begich, a Republican from Alaska, made these remarks during the BTC in D.C. conference held in Washington, D.C., on October 1st. He is among those supporting a bill that could potentially lead to the nation acquiring as many as 1 million Bitcoins, although the likelihood of this happening in the near future appears slim.
Begich expressed his belief that the US needs to broaden its financial assets beyond traditional commodities like gold and silver, especially as these precious metals have reached record highs, possibly in response to the recent government shutdown. The consistent rise of gold and silver highlights a trend where investors flock to perceived safe havens during economic and political instability.
In addition to gold and silver, Begich emphasized the importance of Bitcoin. Alongside Senator Cynthia Lummis from Wyoming, he has introduced the “Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act,” also known as the BITCOIN Act. Should this legislation pass, it could designate Bitcoin as a strategic reserve asset supported by the US government, similar to existing gold reserves.
The proposed act outlines a structured plan for the government to accumulate 1 million Bitcoins over a five-year period using budget-neutral strategies. This initiative builds upon a previous executive order from former President Donald Trump, which restricts the sale of seized cryptocurrencies and mandates that any confiscated digital assets be stored in a separate stockpile managed independently.
Senator Lummis and industry experts, such as Michael Saylor from Strategy, have noted that strategically accumulating Bitcoin over time could potentially help alleviate the US government’s substantial debt, which currently stands at around $30 trillion. They suggest that if Bitcoin maintains an approximate compound annual growth rate (CAGR) of 30%, achieving this target could become a possibility, although there are no guarantees for such outcomes.
Other nations, notably El Salvador, have adopted bold strategies to accumulate Bitcoin, and their efforts seem to be yielding positive results thus far. However, the long-term effectiveness of these strategies remains uncertain, with various factors influencing future market dynamics and asset valuations.
