Michael Saylor Urges US Government to Own ‘Majority’ of Bitcoin

MicroStrategy co-founder urges Bitcoin purchase for the US government to become the undisputed whale. 

MicroStrategy’s executive chair, Michael Saylor, is confident that the US government can become the undisputed Bitcoin whale. Addressing the Bitcoin 2024 commentary, Saylor indicated on Thursday, July 25, that the US government ought to own the majority of BTC globally. 

While MicroStrategy is the world’s largest corporate holder of BTC, Saylor appears to support the US government in buying and hodling Bitcoin. He seemed unconcerned by the wobbles in realizing Bitcoin bull; Saylor is bullish on the BTC market cap, hitting $280 trillion, representing over 200 times by 2024. Saylor earlier projected the BTC market cap to surpass $100 trillion when the currency hits $5 million per coin.

Support for US Owning Majority Bitcoin

Saylor stated that the US should become the largest holder of Bitcoin, which implies that the government should hold over 10.5 million BTC, translating to $711 billion at the present prices. The milestone is a huge goal for the government, which presently owns 208,898 BTC, translating to $14 billion per CryptoQuant on-chain data.  

Saylor wish echoes the views of the independent presidential candidate Robert Kennedy Jr., who indicated the need for the US to match its exposure to Bitcoin with that of gold. Currently, the federal government has the world-leading reserves of gold at 8,134 metric tons valued at $615 billion.

Kennedy’s idea for the US to undertake the large allocation is to utilize such as part of the hard assets basket backing the dollar. Saylor echoes the ideal, indicating that backing the dollar involves undertaking something economically rational. 

Saylor illustrated the construction of the New York City port that enabled the US to participate in international commerce. Acquiring Bitcoin is such a decision. 

Saylor indicated that the future of the US lies in cyberspace and Bitcoin becoming, of essence, a cyber Manhattan. The Bitcoin evangelist considers it similar to how one who backs the dollar buys Manhattan for the paper and trinkets piece. The executive urges buying the BTC before its price surges to hundreds of trillion dollars. 

Like Kennedy, GOP presidential candidate Donald Trump positions himself as the crypto ally desired to end the onslaught orchestrated by the Biden administration. The former president has reiterated the need to safeguard Bitcoin miners within the US. Both candidates are expected to deliver keynote addresses at the Bitcoin 2024 conference. 

Notably, the two presidential hopefuls have pronounced pro-crypto views sharply contrasting the incumbent vice president Kamala Harris. The likely Democratic candidate is yet to make his stance on crypto, though he is likely to inherit blame for the crackdown imposed by the Biden administration. 

Nonetheless, Harris camp is rumored to be reaching out to the leading crypto advocates to consult on the industry- Including the American entrepreneur Mark Cuban.

Difficult Though Possible for Bitcoin Reserve

Any candidate that desires to potentially back US dollars with BTC, must establish a Bitcoin reserve formally. Such a move could symbolize the legitimacy desired by the digital assets industry. 

Saylors suggestion implies pivoting on plans to liquidate any of the $14 billion worth of BTC that the US government owns.  

DAIM.io crypto wealth manager founder Bryan Courchesne, considers the pursuit of that objective is possible though difficult. The executive acknowledged earlier this month in a CNBC that the Justice Department could easily move the 200,000 BTC it holds to the Treasury in the process realize $13 billion.  

Courchesne considers that were the US to switch from random selling to becoming the long-term holder, such could become a good space to pursue. 

The actualization of Kennedys proposal plans would imply actively acquiring $154 billion worth of Bitcoin in four consecutive years. 

On-chain data platform CryptoQuant considers that such accumulation strategy would ultimately fuel the Bitcoin price surge. The CryptoQuant’s “Bitcoin multiplier” illustrate that investing $1 into the Bitcoin yields market cap increase of $3-$4 range during the bull market spell. 

CryptoQuants research head Julio Moreno indicates that the strategy could yield Bitcoin market cap increase in $460-$615 billion range. Such would translate to $23K-$31K price increase for a $90K to $98K per current prices.