As we wonder whether Donald Trump will deliver on his promise of a strategic Bitcoin (BTC) reserve for the United States, the idea of adopting Bitcoin at the state level is gaining momentum.
At this point the last news came from Alabama.
Alabama state auditor Andrew Sorrell has proposed the establishment of a strategic Bitcoin reserve. Sorrell urged Alabama residents to adopt the BTC reserve to protect them from inflation and the economic risks of global de-dollarization.
Sorrell said that Bitcoin's value is not affected by the US dollar, that it will strengthen the US balance sheet and that it can be used as collateral for future debt issuances.
“A well-balanced portfolio should include exposure to many different asset classes.
As of now, cryptocurrencies like Bitcoin are a $3 trillion asset class that the state has zero exposure to.
“It is also the fastest growing asset class with the greatest potential for price appreciation. Investing in Treasuries and bonds is certainly worthwhile. But earning 4% when inflation is 2.7% is only a clean slate.”
Satoshi Action Fund co-founder Dennis Porter explained the potential consequences of such a move from Alabama and the US in particular: “The adoption of a strategic Bitcoin reserve would greatly escalate the supply-demand crisis. As more institutions and governments compete for Bitcoin, supply will continue to decrease, putting upward pressure on prices.”
Porter also stated that he predicted that a ‘Strategic Bitcoin Reserve’ would be created by a G7 member country and a BRICS member country by the end of 2025.
Porter stated that in 2026, the remaining members will fall like dominoes regarding the Bitcoin reserve.
https://twitter.com/Dennis_Porter_/status/1866679906484326544
*This is not investment advice.
