Lawrence Summers, former U.S. Treasury Secretary, criticized the proposal for a national Bitcoin reserve, calling it a “crazy” idea designed to please crypto industry supporters.
He questioned the logic behind the government holding Bitcoin, which he views as a volatile asset, instead of more traditional reserves like gold or oil.
While the U.S. has seized billions of dollars worth of Bitcoin through criminal investigations, some lawmakers, including Senator Cynthia Lummis, are advocating for the government to accumulate Bitcoin as a strategic asset. States like Pennsylvania are also exploring Bitcoin investments, but the idea of a national Bitcoin reserve remains controversial.
Summers and other experts, such as Avik Roy, argue that while a Bitcoin reserve might have some benefits, it can’t solve the country’s larger fiscal challenges like the national debt. However, some believe it could lead to a massive increase in Bitcoin’s value, with estimates suggesting it could reach $1 million per coin.
A few countries have already started incorporating Bitcoin into their reserves. El Salvador made Bitcoin legal tender in 2021, while Bhutan has invested in Bitcoin through mining operations. The U.K. has also built a Bitcoin reserve, aiming to become a global crypto hub.
21Shares has decided to shut down its Bitcoin and Ethereum futures ETFs, with liquidation expected to take place by March 28.
On Friday, Bitcoin’s price surged toward the $84,000 level, briefly surpassing $85,000, lifting the spirits of the crypto community.
Binance Research, the investigative branch of the leading cryptocurrency exchange, has released an insightful new study about Bitcoin (BTC).
The possibility that Bitcoin may repeat its 2024 market behavior, where it consolidated after hitting a record price, is still on the table, according to Markus Thielen, 10x Research’s chief crypto analyst.