Alabama State Auditor Sorrell Backs Bold Plan for Strategic Bitcoin Reserve
The debate over the adoption of Bitcoin (BTC) at the national level has become a hot topic after the Russian leader joined in. The United States has been at the forefront of advocating for Bitcoin as a strategic reserve since President-elect Donald Trump was re-elected.
In addition, senior Federal Reserve officials believe that Bitcoin is a kind of digital gold with better functions, including a limited supply of 21 million coins. Furthermore, the approval of a spot Bitcoin ETF has proven to be a major success on Wall Street, indicating increased demand from institutional investors.
Alabama to lead development of Bitcoin strategic reserve plan
The state of Alabama may be considering a strategic Bitcoin reserve to increase local investment and business. State Auditor Andrew Sorell said the planned adoption of Bitcoin will insulate Alabamians from the potential impacts of rising inflation and the ongoing effects of global de-dollarization.
“A balanced portfolio should include many different types of asset classes. As of now, cryptocurrency is a $3 trillion asset class to which the country has zero exposure. It is also the fastest growing and has the greatest potential for appreciation. Asset class. Investing in Treasuries and bonds certainly has its place, but earning a 4% yield with 2.7% inflation is hardly a way to break even,” Sorell noted.
market impact
Dennis Porter, co-founder of the Satoshi Action Fund, said that the adoption of Bitcoin strategic reserves will exacerbate the supply and demand crisis to a large extent. Additionally, Bitcoin supply on centralized exchanges has dropped to a multi-year low of less than 2.26 million due to increased demand from whale investors.
Under the Trump administration, the United States seeks to purchase approximately 1 million Bitcoins over the next five years, shrinking the overall supply significantly and leading to a super bull cycle.
On Tuesday, Eric Trump, executive vice president of the Trump Organization, predicted that the price of Bitcoin will easily reach $1 million after recently reaching $100,000 for the first time.
