At the Bitcoin Conference 2024, presidential candidate Trump's speech increased the possibility of strategic Bitcoin holdings for the United States. Senator Cynthia Lummis also introduced a bill for strategic Bitcoin holdings. Of course, there will be difficult obstacles to passing and implementing the bill.
If the U.S. strategic Bitcoin holdings become a reality, what might happen?
If the U.S. doubles its energy production, strengthens its international dominance in Bitcoin mining power with cheaper electricity, and becomes the largest holder, there's a possibility they might propose using Bitcoin for international trade settlements. This is because the U.S. could mine Bitcoin at a low cost and sell it at a high price, while continuously increasing the Bitcoin price.
Because this scenario is foreseeable, China will have to make a decision, and according to game theory, they are likely to participate in the Bitcoin competition. Most countries, including European nations, Japan, and South Korea, will also join in the strategic stockpiling of Bitcoin. Without Bitcoin, they would have to suffer enormous losses and sacrifices in international trade.
jaehong747|1 year ago
If the U.S. strategic Bitcoin holdings become a reality, what might happen?
If the U.S. doubles its energy production, strengthens its international dominance in Bitcoin mining power with cheaper electricity, and becomes the largest holder, there's a possibility they might propose using Bitcoin for international trade settlements. This is because the U.S. could mine Bitcoin at a low cost and sell it at a high price, while continuously increasing the Bitcoin price.
Because this scenario is foreseeable, China will have to make a decision, and according to game theory, they are likely to participate in the Bitcoin competition. Most countries, including European nations, Japan, and South Korea, will also join in the strategic stockpiling of Bitcoin. Without Bitcoin, they would have to suffer enormous losses and sacrifices in international trade.
JHP