Will the United States reserve 1 million Bitcoins within 5 years?

Some time ago, U.S. Senator Cynthia Lummis proposed a bill about Bitcoin called the "Bitcoin Act of 2024", which caused a huge uproar.

The core of the bill is that it proposes to sell part of the US gold reserves to purchase 1 million bitcoins.

At current prices, this would cost about $90 billion .

Sell ​​gold and buy bitcoin

Loomis believes that Bitcoin is a better asset for the United States than gold because it is decentralized and has a limited supply.

“We already have a variety of financial assets based on gold that can be converted into bitcoin,” she said.

It is understood that the "Bitcoin Act of 2024" also allows US states to store Bitcoin individually .

The proposal has received more attention due to President Donald Trump’s support for cryptocurrencies. Trump has shown interest in building a Bitcoin reserve, and his idea could help move the bill forward.

If the plan is approved, it would likely lead to wider acceptance of Bitcoin as a financial asset and prompt other countries to follow suit.

Another US state will also reserve Bitcoin?

Just as the Bitcoin Act of 2024 was introduced, a Pennsylvania lawmaker also introduced the Bitcoin Reserve Act.

Republican Congressman Mike Cabell has reportedly introduced a new bill titled the Pennsylvania Bitcoin Strategic Reserve Act.

The bill would allow Pennsylvania to allocate 10% of the state’s general fund, emergency fund, and state investment fund to Bitcoin.

It is worth noting that Pennsylvania has previously passed the Bitcoin Bill of Rights, which ensures residents' right to autonomous custody of digital assets.

As discussions continue in other states, Pennsylvania may soon take the lead in incorporating digital assets into state economic strategies.

If the bill passes, Pennsylvania would set an important precedent by becoming the first U.S. state to directly hold Bitcoin, offering a unique way to combat inflation and diversify investments.

The delusion behind Bitcoin’s strategic reserve?

While the "Bitcoin Act of 2024" has attracted widespread attention from the outside world, it has also caused great controversy because in addition to the goal of reserving 1 million bitcoins in 5 years, it also lists a mechanism for paying reserves.

In brief, there are two main points:

1. Any surplus that the Federal Reserve returns to the Treasury will be used to purchase Bitcoin.

2. The bill also proposes that the Federal Reserve Bank mark all gold certificates to the current gold market price and then remit the difference to the Treasury to purchase Bitcoin.

The bill argues that one million bitcoins will diversify America’s assets and increase financial and monetary resilience.

In this regard, critical voices from Wall Street believe that:

On the one hand, Bitcoin cannot serve as the currency of the United States. The strategic reserve referred to in the bill is to a certain extent just a sovereign wealth fund , and the Treasury Department has the authority to repay the sovereign debt of the United States.

2. Bitcoin reserves only serve one strategy. A treasury with one million bitcoins will be trapped in its own portfolio.

The U.S. Congress could never exercise monetary sovereignty by restricting Bitcoin mining or trading, because the price of the Treasury’s own assets would immediately collapse. Strategic Bitcoin reserves are not a resilience strategy for the United States, they are only a resilience strategy for cryptocurrency holders.

Ultimately, opponents believe that Bitcoin is not a currency and that monetary sovereignty cannot be in the hands of the United States.