US Strategic Reserve a ‘monumental endorsement’ of Bitcoin (BTC), says HC Wainwright
The establishment of a strategic Bitcoin Reserve (SBR) in the US is a “massive endorsement” of the world’s largest cryptocurrency, Broker HC Wainwright said in a research report Monday.
The move mints Bitcoin’s “Legitimacy in the mold of humanity’s most historally prized asset: gold,” written by Kevin Dede and Michael Donovan.
President Trump has appointed his administration to develop a Bitcoin strategic reserve to handle the government’s owners. He also called for a stockpile of other types of cryptocurrencies.
The SBR “significantly improves Bitcoin’s institutional stance, which marked it clearly as a store of sovereignty,” the authors wrote.
The Executive Order’s instructions not to sell any seized bitcoin is also neutralizing the concerns of the US government’s extermination, the report said.
Treasury and Commerce departments have been assigned to grow the federal users’ bitcoin stack using the budget neutral methods, the report mentioned. This is a sign of a lasting promise, without further burden on taxpayers.
Texas’s Passing SB-21A bill that will allow the state to invest public funds in Bitcoin, praising the steps taken by the federal government and may lead to other states that have adopted similar policies, the broker said.
Bitcoin’s status as a newly owned Treasury reserve can encourage big holders, such as country states and public companies, to grow their holdings, HC Wainwright said.
The intrinsic benefit of cryptocurrency, including “deficiency, frictionless global transfer, and resilience against inflation makes it attractive -a cousin -child in the $ 20 trillion of the gold market capitalization,” the report added.
Read more: US Strategic Bitcoin Reserve, Crypto Stockpile a ‘Pivotal Moment’ for Industry: KBW
