The establishment of a strategic Bitcoin (SBR) reserve in the United States is a “monumental support” of the world’s largest cryptocurrency, said HC Wainwright corridor in a research report on Monday.
The Move Mints of the “legitimacy of Bitcoin in the mold of the most precious asset of humanity: gold,” the Kevin Dede and Michael Donovan analysts wrote.
President Trump ordered his administration to form a strategic Bitcoin reserve to maintain assets that have been seized by the government. He also requested a reserve of other types of cryptocurrencies.
The SBR “significantly improves the institutional position of Bitcoin, which clearly marks as a sovereign value store,” wrote the authors.
The instruction of the executive order not to sell any Bitcoin seized also neutralizes the liquidation concerns by the United States government, according to the report.
The Treasury and Commerce departments have been ordered to grow the Federal Government’s Bitcoin battery using neutral budget methods, the report said. This is a sign of a long -term commitment, without any additional load for taxpayers.
The approval of Texas of SB-21, a bill that would allow the State to invest public funds in Bitcoin, complements the steps taken by the federal government and could lead to other states to adopt similar policies, said the corridor.
The state of Bitcoin as the new asset of the Treasury Reserve could attract the big holders, such as national states and public companies, to increase their holdings, HC Wainwright said.
The intrinsic advantages of cryptocurrency, which include “scarcity, global transfer without friction and resilience against inflation make it increasingly attractive in relation to market capitalization of $ 20 billion gold,” the report added.
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