Langgam Pos - Donald Trump's strategy to hold Bitcoin indefinitely, regardless of market conditions, is widely endorsed within the cryptocurrency community, though it differs from the current approach of the U.S. government.
In his keynote address at the largest Bitcoin conference of the year held last Saturday, former U.S. President Donald Trump did not promise to establish Bitcoin as a strategic reserve currency. Instead, the Republican presidential candidate vowed to retain the current Bitcoin holdings acquired by the U.S. government from asset seizures in the financial sector.
"Our government has long violated a fundamental rule known to every Bitcoin user: Never sell your Bitcoin," Trump stated at the Bitcoin Conference in Nashville, as reported by CNBC on Monday (July 29, 2024).
"If elected, my administration’s policy will be to keep 100% of all Bitcoin currently held or acquired by the U.S. government in the future," he added.
Trump’s approach of maintaining Bitcoin holdings, whether the market is bullish or bearish, is highly recommended within crypto circles, although it contrasts with the current practices of the U.S. government.
Currently, the U.S. Marshals Service regularly auctions Bitcoin and other cryptocurrencies like Ether and Litecoin stored in government vaults.
Such sales can sometimes trigger drops in cryptocurrency prices, as seen earlier this month when Germany began liquidating hundreds of millions of dollars worth of seized Bitcoin.
Meeting with Donors
In a private meeting with various donors leading up to his Saturday statement, Trump did not discuss the specifics of his plan but mentioned that he believed it made sense for the government to hold Bitcoin.
Attendees included investors Tyler and Cameron Winklevoss, musician Kid Rock, and Republican Senators Cynthia Lummis, Bill Hagerty, and Marsha Blackburn, among others, according to two individuals present at the meeting.
Trump's proposal is less revolutionary than some cryptocurrency enthusiasts had hoped and falls short of the broader promotion seen from third-party presidential candidate Robert F. Kennedy Jr.
"I understand that President Trump might announce plans to build a Fort Knox for Bitcoin and allow the U.S. government to acquire one million Bitcoins as a strategic reserve," Kennedy said during his speech at the Bitcoin Conference on Friday.
Kennedy's Bolder Proposal
Kennedy went a step further than Trump, promising to create a strategic reserve of 4 million Bitcoins to match the gold reserves currently held by the U.S., some of which are stored near the Fort Knox military base.
The independent presidential candidate stated that he would sign an executive order directing the U.S. Treasury to purchase 550 Bitcoins daily, a move that would dramatically alter the regulation and valuation of cryptocurrencies.
As Bitcoin becomes a more central issue in the campaign trail, largely driven by increased crypto lobbying in Washington, Trump's reluctance to match Kennedy's "Fort Knox Bitcoin" commitment is notable.
However, Trump's hesitance reflects the complexities of promising a Bitcoin reserve equivalent to the gold standard.
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