By now, we all know that Michael Saylor, founder of MicroStrategy and the creator of the ’21 Rules of Bitcoin’, is bullish on Bitcoin. But now he’s taking it a step further, claiming that a U.S. national Bitcoin reserve could generate up to $81 trillion for the treasury. How does he arrive at this enormous figure?
An $81 Trillion Bitcoin Reserve
According to Saylor, a strategic policy on digital assets can strengthen the U.S. dollar, neutralize national debt, and position America as the global leader of the 21st-century digital economy.
Saylor believes it’s high time for the U.S. to establish a Bitcoin reserve, akin to the strategic reserves for essential resources like oil. This would involve the U.S. government purchasing and holding Bitcoin as a national reserve.
Based on his projections, where Bitcoin generates consistent annual returns, Saylor envisions this national Bitcoin reserve being worth $81 trillion by 2045.
Criticism of the Proposal
Saylor’s ambitious idea hasn’t been without pushback. Bitcoin is volatile, and some warn of the destabilizing effects a U.S. Bitcoin reserve could have on the market. Bitcoin as a reserve asset could potentially harm the U.S. dollar rather than strengthen it.
Peter Schiff, one of Bitcoin’s most vocal critics calls the proposal “complete nonsense.” He argues that adopting such a strategy would weaken the U.S. dollar, worsen the national debt, and turn the U.S. into a global laughingstock.
This is complete bullshit. The proposal would do the opposite. It would weaken the dollar, exacerbate the national debt, and making America a laughing stock. It would deprive business of power, diminish growth, and destroy value.
— Peter Schiff (@PeterSchiff) December 20, 2024
Who’s Really Laughing?
Despite Schiff’s comments, he’s often seen as the joke in financial circles. His funds have underperformed for years, and compared to Bitcoin, Schiff’s investment track record has been abysmal.
Meanwhile, MicroStrategy, the company led by Saylor, has thrived. Since August 2020, the firm holds 402,100 Bitcoin and has outperformed giants like Microsoft, Apple, and Google in terms of returns.
Considering his track record with Bitcoin suggests that Michael Saylor is not backing down from his belief in its transformative potential, expecting the price of the asset to reach at least $13 million by 2045.
Keep following us at HowToBuyBitcoin.org for the latest news, scoops, and background on Bitcoin.