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.
Bitcoin giant Strategy has added another 4,980 BTC to its reserves in a purchase worth approximately $531.9 million, according to Executive Chairman Michael Saylor.
According to renowned market veteran Peter Brandt, trading isn’t the path to prosperity for the vast majority of people.
Charles Edwards, founder and CEO of Capriole Investments, has offered a fresh perspective on Bitcoin’s stalled price movement near the $100,000 mark, despite growing institutional enthusiasm.
Metaplanet has expanded its Bitcoin treasury with a new acquisition of 1,005 BTC valued at approximately $108.1 million, further cementing its status as one of the largest corporate holders of the digital asset.