Michael Saylor, executive chairman and co-founder of Microstrategy, one of the first companies to adopt the bitcoin standard, has proposed that the U.S. purchase 20% or 25% of the bitcoin available using the nation’s gold stash as part of a national strategic reserve policy.
Michael Saylor Outlines US's Ultimate Bitcoin Reserve Strategy: Dump Gold, Buy Bitcoin
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From Gold to Bitcoin? Michael Saylor Outlines High Stakes Economic Gambit
The rise of several strategic bitcoin reserve proposals in various countries has given way to talks regarding how these nations would attempt to build them and how this might play out geoeconomically. In a recent interview, bitcoin permabull Michael Saylor, executive chairman and co-founder of Microstrategy, outlined a hypothetical strategic bitcoin reserve trade, including gold in the mix.
Highlighting bitcoin’s rise as the “world’s reserve capital network” and comparing it to other long-term alternatives such as real estate and stocks, Saylor recommended that the U.S. government purchase 20% or 25% of the total bitcoin supply net worth.
Saylor explains that this simple move would catalyze the growth of the bitcoin network to benefit the U.S., with other nations like Russia and China following U.S. steps and selling a relevant part of their assets to purchase bitcoin. Saylor predicted that part of this money would also flow to the U.S.
Nonetheless, Saylor drafted another move with even higher stakes: using the national gold stockpile to settle this transaction and upsetting the global gold trade in one fell swoop.
He explained:
If you want to put a twist on it, dump your gold, sell all the U.S. gold, and buy bitcoin. Then the trade is free because you could buy 5 million bitcoin for the cost of the gold.
Saylor anticipates this would demonetize gold as an asset class, bringing the reserves of the U.S. enemies in gold to zero. In the same way, the U.S. assets would rise to a hundred trillion dollars, with an additional advantage related to controlling the world’s reserve capital network.
However, other countries are allegedly moving in this direction too. David Bailey, CEO of BTC Inc., recently alleged that four undetermined nations had already agreed to establish their strategic bitcoin reserve initiatives.
Read more: Strategic Bitcoin Reserve Speculation Grows: Initiatives Allegedly Greenlit by Four Nations
