KEY TAKEAWAYS
- Adam Back predicts that Bitcoin’s price could increase 11 times, surpassing $1M per coin, if the US creates a national $BTC reserve.
- During his campaign, Trump promised to establish a strategic Bitcoin reserve, potentially setting off a global race for Bitcoin adoption.
- Countries like El Salvador and Bhutan already hold Bitcoin reserves, and leaders in Argentina and Poland have hinted at similar moves.
- Despite enthusiasm from Bitcoin advocates, uncertainties around legality and logistics leave markets skeptical about the US adopting Bitcoin as a reserve asset.
Adam Back (founder of Blockstream and one of Bitcoin’s early adopters) believes that if the US establishes a national strategic Bitcoin reserve, FOMO will grip the world.
Back argues that the initiative would accelerate governmental Bitcoin adoption as a reserve asset. The trend is already gaining traction in US states like Florida and Pennsylvania.
Moreover, the government’s move could trigger a ‘race’ among other nations to adopt Bitcoin and even push China to reconsider its anti-cryptocurrency stance.
Strategic Bitcoin Reserve
During his campaign, Donald Trump promised to create a national strategic Bitcoin reserve. Adam Back predicts that Bitcoin’s price could rise at least 11 times if this promise materializes.
He wrote on his X account that if the US strategic Bitcoin reserve becomes a reality, ’prepare for a seven-digit Bitcoin this cycle.
Even before the US made its move, nations like El Salvador and Bhutan had already established strategic Bitcoin reserves. In Poland, presidential candidates have also signaled interest in adopting Bitcoin as a reserve asset.
In Latin America, Trump’s potential move might be mirrored by Argentina’s president, Javier Milei. He’s strongly aligned with US policies and has advocated for national Bitcoin adoption multiple times.
A Skeptical Market Might Be Bad Bad News for Bitcoin
Back also explained that the market remains skeptical about the US seriously considering a strategic Bitcoin reserve.
iI the US Strategic Bitcoin Reserve happens prepare for 7 figure bitcoin. this cycle. the market is skeptical on meaningful follow through for now, so that is not at all priced in.
The Blockstream CEO also referenced Trump’s promise that the US could use confiscated Bitcoins or acquire new ones specifically for the reserve.
However, Bitcoins confiscated in cases like FTX or the Bitfinex hack legally belong to victims, making it unlikely for the government to secure judicial approval to retain those $BTC.
Senator Cynthia Lummis aligned with this proposal and suggested that the US could sell gold to purchase 1M Bitcoins.
Nonetheless, there are still many speculations and few concrete details about how this reserve would operate. Additionally, Trump would need to assume the presidency before fulfilling his promise.
Enthusiastic Bitcoiners Foresee Bitcoin FOMO
Despite the uncertainties, Bitcoin enthusiasts like Adam Back remain optimistic. In his response to another X user, he explained that if the US implements such a reserve, FOMO would take over the global market.
According to him, acquiring 1M Bitcoins efficiently would require extreme discretion, likely through OTC (over-the-counter) desks.
If Back’s prediction comes true, Bitcoin could increase in value by at least 11 times its current price, surpassing $1M.
Adam Back believes the US could ignite a global Bitcoin frenzy by establishing a strategic reserve.
Such a move would accelerate Bitcoin adoption worldwide, potentially pushing its price to $1M this cycle. Back suggests this could create a domino effect, prompting countries like China to reevaluate their stance on cryptocurrencies.
Despite a generalized skepticism surrounding the US $BTC reserve (due to legal challenges and the absence of concrete plans), industry leaders remain confident.
Will the US become a Bitcoin leader, and will Trump bring the much-promised crypto revolution?
The following weeks and months should offer an answer to that.
References
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Cassio Gusson is a journalist passionate about technology, cryptocurrencies, and the nuances of human nature. With a career spanning roles as Senior Crypto Journalist at CriptoFacil and Head of News at CoinTelegraph, he offers exclusive insights on South America’s crypto landscape. A graduate in Communication from Faccamp and a post-graduate in Globalization and Culture from FESPSP, Cassio explores the intersection of governance, decentralization, and the evolution of global systems.
The Tech Report editorial policy is centered on providing helpful, accurate content that offers real value to our readers. We only work with experienced writers who have specific knowledge in the topics they cover, including latest developments in technology, online privacy, cryptocurrencies, software, and more. Our editorial policy ensures that each topic is researched and curated by our in-house editors. We maintain rigorous journalistic standards, and every article is 100% written by real authors.
