Michael Saylor Says Creating a Strategic Bitcoin Reserve Can Reduce US Debt by $16 Trillion

Key takeaways

• Senator Cynthia Lummis and MicroStrategy's Michael Saylor are pushing for a strategic Bitcoin reserve in the United States.
• Saylor says accumulating Bitcoin over five years could help offset the US national debt by $16 trillion.
• Senator Lummis proposes selling a fraction of the Federal Reserve's gold holdings to establish a Bitcoin reserve.

Stashing Bitcoin to Cut US National Debt

Chairman of MicroStrategy Michael Saylor and Senator Cynthia Lummis from Wyoming advocate for a strategic Bitcoin reserve in the US.

In a CNBC interview, Saylor said that stashing one million Bitcoin over five years will help diminish the US debt by $16 trillion. This implies reducing the current national debt by a whopping 45%.

During the interview, Saylor talked about the red wave, where the Republican party regained control in the just concluded US elections. He also discussed how Trump's victory could impact the digital asset market.

Further, Saylor also delved into MicroStrategy's new goal of raising $42 billion to buy Bitcoin over the next three years. He believes that with an effective plan, the US could set up its own strategic bitcoin reserve soon.

Recall that during the Bitcoin 2024 conference held in Nashville in July, President-elect Donald Trump said he would create a strategic Bitcoin stockpile. This plan would allow the US government to hold 200,000 BTC as reserves.

Also, Republican Senator Cynthia Lummis from Wyoming introduced the BITCOIN bill, which proposes a strategic bitcoin reserve. In the draft bill, Lummis shared a plan that will see the United States accumulating one million BTC over five years.

According to a Thursday report, Sen. Lummis proposed selling some of the Fed's gold reserves to purchase one million BTC.

According to Saylor, the US could gain $16 trillion from buying one million BTC if Senator Lummis' BITCOIN bill is adopted. He believes the best way to protect the US dollar is to retire the debt' and accumulate wealth.

Michael Saylor also said, The next best way to protect the dollar is to make sure that if anybody ever considers a different capital asset other than the treasury bill, you own it." He emphasized that the asset is Bitcoin.

A Potential Trump Max Scenario

During his interview, Saylor said the US govt acquiring strategic assets is not a novel concept. He noted that the US has acquired several strategic assets throughout its history, including oil, helium, grain, and gold. According to Saylor, all these assets have delivered trillions of dollars in returns.

Saylor also cited a recent development where the Pennsylvania House of Reps proposed a bill to set up a state BTC reserve. He is bullish that a BTC reserve will happen in the US because the Trump administration understands the potential of the digital asset.

Furthermore, Saylor pointed out a Trump Max" scenario. In this scenario, the US would purchase four million BTC, which he believes could yield $81 trillion in returns. Saylor describes this Trump Max strategy as the most rational approach to offset the US debts.

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