Highlights
- The Bitcoin price has dropped 7.4% post-announcement but saw a slight recovery, influenced by Michael Saylor’s advocacy for U.S. Bitcoin purchases.
- Saylor’s proposal suggests the government acquire 5% to 25% of Bitcoin’s total supply, purchasing daily from 2025 to 2035.
- He believes this reserve could generate $10 Trillion annually by 2045, funding infrastructure and reducing national debt.
Recently, Michael Saylor’s proposal came to light, when President Donald Trump’s recent decision to establish official government Bitcoin reserves in the U.S. has drawn criticism from industry observers.
He signed an executive order to create what he calls a Strategic Bitcoin Reserve, along with a Digital Asset Stockpile that will include various forms of digital currency.
Initially, there was optimism surrounding the announcement, but as the market realized that no new purchases would be made to increase the reserve. The Bitcoin price began to decline.
At one point on Sunday, it dropped 7.4% to around $80,500 before making a slight recovery to $83,400, reflecting an intraday rise of 3.5%.
Other cryptocurrencies mentioned by Trump, such as Ether, XRP, Cardano, and Solana, also experienced declines.
However, the recent uptick in the Bitcoin price can be linked to a tweet from Michael Saylor, who urged the U.S. government to acquire up to 25% of Bitcoin’s total supply. He stressed that a bigger Strategic Bitcoin Reserve could significantly enhance national prosperity.
Keep reading to know about the unfolding situation.
Michael Saylor Pushes Proposal For US Bitcoin Buys
Recently, the Michael Saylor unveiled an ambitious proposal titled “A Digital Assets Strategy to Dominate the 21st Century Global Economy.”
In this document, he advocates for the U.S. government to acquire between 5% and 25% of Bitcoin’s total supply.
Saylor envisions a strategy where the government would consistently buys Bitcoin daily from 2025 to 2035, by which time nearly 99% of all Bitcoins will have been mined. He highlighted the importance of Bitcoin’s limited supply and its increasing global adoption.
Saylor strongly recommends that the government should hold onto the acquired Bitcoin permanently, rather than selling any of it.
He believes that by 2045, this Bitcoin reserve could generate at least $10 Trillion annually, significantly aiding in the reduction of the national debt.
Furthermore, he argues that the profits from this reserve could fund essential infrastructure projects, drive technological innovation, and support public welfare without necessitating higher taxes or additional borrowing.
If in case, the U.S. were to follow Saylor’s plan and acquire the maximum suggested amount, it would hold approximately 5.25 million Bitcoins.
A key aspect of Saylor’s vision involves major regulatory reforms. He calls for the removal of restrictive crypto regulations. He claims that current policies hinder the growth of the crypto sector in the U.S.
Michael Saylor also argues that tax policies affecting crypto miners, investors, and exchanges should be more transparent and equitable to foster innovation and market stability.
Additionally, his proposed regulatory framework categorizes digital assets into four distinct types: digital tokens, digital securities, digital currencies, and digital commodities.
Each category would serve a specific economic purpose, providing clarity for future developments in the digital economy.
A Much Larger Proposal Than Senator Cynthia Lummis
On March 7, President Donald Trump signed an executive order establishing a Strategic Bitcoin Reserve and a Digital Asset Stockpile.
Although the order did not outline an immediate purchase plan, it directed the Treasury and Commerce departments to devise “budget-neutral strategies” for acquiring additional Bitcoin.
Michael Saylor’s proposal, alongside Trump’s executive order, reflects a growing trend of institutional adoption of Bitcoin. However, market analysts are divided on the broader implications of these developments.
This stash would be more than previous proposals, such as the Bitcoin Act put forth by Senator Cynthia Lummis, which recommended acquiring only 1 million Bitcoins.
Saylor highlights that his plan would establish economic dominance, strengthen the dollar and secure the nation’s financial future.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.