An article recently published on Forbes mentions that the strategic Bitcoin reserve proposed by President-elect Trump is likely to have a major impact on the nature of cryptocurrencies. This could likely be a tipping point that could change the outlook that several other major economies have regarding digital currencies.
Let me elaborate so you can better understand what I'm saying.
First, imagine that the United States government treats Bitcoin the same as oil, a commodity so precious that it has to limit its supply. That's exactly what Trump is saying. This is not another random crypto news; this is the US president-elect saying "Hey, Bitcoin is as important to America's national interests as oil".
Currently, the price of Bitcoin is at $106,000. So, based on this information, this might be a factor leading to a possible "$15 trillion market expansion". In other words, we're talking about the price of Bitcoin breaking through an all-time high ceiling.
It can be compared to buying gold as people hedge for worse scenarios, for instance, a financial collapse; in this case, think of BTC as gold. There is a growing concern about the value of the USD, as stated in the Forbes article, and the hoarding of BTC in certain countries like Russia. It's almost like a very tall game of musical chairs-you wouldn't want to be the one left standing when the tune ends.
Another important Trump argument, as the Forbes analyst noted, is that Bitcoin "could outperform gold." The thing is, put another way, the value would be $16 trillion in total. More than ten times what it costs now.
However, there is a plot twist here. If the United States decides to hoard BTC coins, then other nations might panic and start doing the same. Think of it as the digital phase of the Cold War, where everyone is trying to secure BTC.
This could radiate the potential to be classified as one of the most important points in financial history. Given the current trends, it is clear that BTC will be a valuable asset in international markets and not just an online currency that people trade with.
The cost of BTC is still bouncing around like an overcaffeinated kangaroo. And while such moves might be enough to catapult its value beyond the moon, it could just as quickly sink like hot potatoes in succession. That is the nature of cryptocurrency.
Trump's idea to create a Bitcoin reserve is not just another headline in a newspaper article. It is a clear sign that Bitcoin is maturing and changing from an internet brat to something respected by the government. According to this Forbes report, we can observe a major shift in how the world views and values crypto.
The evolution of currency is being reshaped as we speak, and it could very well be Bitcoin at the forefront of this change.