- There are rumors that Donald Trump could make a strategic Bitcoin reserve for the USA
- It is that he may announce it at the Bitcoin Conference 2024
- Proponents of this believe that this could greatly strengthen Bitcoin as an asset
- However, there are challenges in market volatility, energy costs, and ecology
So, Donald Trump has recovered from his recent assassination attempt, which you can read more about here.
He’s already back in action and is set to speak at the 2024 Bitcoin Conference in Nashville, which has suddenly sparked some rumors.
Denis Porter published a post saying that, according to his sources, Donald Trump will announce the Bitcoin Strategic Reserve at the Bitcoin Conference 2024 in Nashville.
The sources remain unknown, so we can’t asses how credible this is. However, the news has gained popularity quickly and has given speculation of related things.
What Are the Pros and Cons of Creating a Strategic Bitcoin Reserve In the US?
Numerous supporters of this initiative suggest that including Bitcoin in the list of reserves of the world’s first economy and putting it alongside gold—means fully and finally establishing its legitimacy for the rest of the world. It could boost the much faster widespread adoption of Bitcoin and other cryptocurrencies, just as it did with the dollar.
This logic obviously makes sense if crypto takes the place of the dollar; then perhaps the world economy would work more transparently, be more stable, and be fairer in many ways.
However, this view has its opponents voicing quite valid concerns if Donald Trump does make such an announcement at the Bitcoin Conference in Nashville and starts direct initiatives if he wins the election. Among the concerns are sound:
- Volatility. In their opinion, Bitcoin, like other cryptocurrencies, is too susceptible to market fluctuations and the myriad of factors that can create them.
- Energy. They warn that cryptocurrencies are still too resource-intensive and require too much energy to maintain their infrastructure and operations.
- Ecology. This follows from the previous one, where Bitcoin uses only 51% renewable energy. The rest of the energy provided leaves a carbon footprint, hindering environmental initiatives and affecting local communities.
What Conclusions Can We Draw?
Right now, it is not possible to discuss the actual consequences of a hypothetical event. After Donald Trump’s speech at the Bitcoin 2024 conference, we will be able to see the real reaction of regulators and global and local markets.
In any case, the global adaptation of cryptocurrencies, including into critical systems, obviously promises improvements. Still, technology must evolve to be more efficient and reliable to satisfy all parties.
We’ll be watching closely to see how Donald Trump’s further initiatives and actions play out in one scenario or another. Stay tuned so you don’t miss any updates!
Join our Legends Community so you do not miss any world economics events and get the most up-to-date, trusted, and grounded information from the world of finance and crypto!
