The upcoming 2024 presidential election seems to be shaping up as a competition between Vice President Kamala Harris as the Democratic Party’s candidate and former President Donald Trump as the Republican Party’s candidate. Nonetheless, there is also another contender in the mix: Robert F. Kennedy Jr., who is running independently.
Currently, the predictive analytics platform Polymarket is indicating that Kennedy has a mere 1% probability of winning the presidential election. Despite this, RFK Jr. is persistently trying to engage voters and attract attention.
Lately, Kennedy has revealed some concepts he is considering. cryptocurrency Even though the likelihood of RFK winning in November is minimal, I believe his unconventional views on cryptocurrency should be given consideration.
What were RFK Jr.’s comments regarding Bitcoin?
In Nashville, Tennessee, RFK Jr. was the main speaker at the Bitcoin 2024 conference held last month.
Kennedy mentioned in his address last month that should he be elected as president, he would lead the way. U.S. Treasury to buy 550 Bitcoin ( BTC -1.17% ) Each day, Bitcoins were acquired until a minimum reserve of 4 million was reached.
While some people may consider this concept unrealistic, I personally find RFK’s logic to be valid. Let’s delve into the factors that contribute to Bitcoin’s value in comparison to other digital currencies.
What sets Bitcoin apart from other cryptocurrencies?
Bitcoin stands out for a number of reasons. Unlike traditional currency, Bitcoin does not exist in physical form and cannot be physically possessed. Instead, it is a digital currency. cryptocurrency that are available for buying on platforms like Coinbase or Robinhood , and it can also be obtained through a procedure known as mining .
RFK stated that implementing a bold strategy to buy Bitcoin could have a significant impact on the price of the digital currency, potentially driving it to reach “hundreds of trillions of dollars.”
Although I cannot confirm whether the valuation is reasonable, I comprehend RFK’s perspective on the potential for significant fluctuations in Bitcoin’s price. Just like stocks, the price of Bitcoin is influenced by various factors. The relationship between the availability of a product or service and the desire for it. .
Given that there exists a limited overall supply of There are 21 million Bitcoins in circulation. Cryptocurrency is typically viewed as limited in quantity and is occasionally labeled as scarce. digital gold .
Having 4 million Bitcoin would constitute a substantial share of the overall supply and could potentially provide the U.S. with some influence over the cryptocurrency’s price.
Credit: Getty Images.
What are the reasons for the U.S. Treasury to consider investing in Bitcoin?
At present, cryptocurrency is typically viewed as a speculative investment because it lacks regulation and has limited practical applications in the real world.
In January, the Securities and Exchange Commission (SEC) gave its approval to several initiatives. Identify exchange-traded funds for Bitcoin — proposing that the government of the United States Investors that are large organizations, such as pension funds, mutual funds, or insurance companies, that trade securities in significant amounts. More and more people are starting to show interest in cryptocurrency.
In my opinion, I believe it is not unreasonable for the U.S. government to consider investing in Bitcoin. The Treasury department already holds a stake in it. non-traditional investments , like gold. Therefore, in my opinion, investing in Bitcoin is just adding another dimension to my portfolio. Expanding investments across different assets to reduce risk. .
Purchasing 4 million Bitcoins at the current price of around $61,000 would require the Treasury to spend approximately $244 billion. Despite this significant cost, the Department of the Treasury possesses budget resources exceeding $3.8 trillion, as reported on USASpending.gov.
Furthermore, I believe it is possible that if the U.S. Treasury starts acquiring a significant amount of Bitcoin, it could spark greater interest in cryptocurrency from other governments globally. This could lead to increased involvement from prominent government entities, potentially impacting the market rapidly. Bitcoin’s worth .
Moreover, distinguishing the exceptional financial strength of the United States in this manner could also influence important matters like foreign policy and trade discussions.
In my opinion, holding Bitcoin offers greater potential for profit and is a smart strategy to adapt in a continuously evolving and complex financial environment.
