Should America Sell All Its Gold to Buy 25% of the Bitcoin Network, As Michael J. Saylor Suggests?

Analysis of the potential consequences of such a strategy.

Now holding over 402K BTC with MicroStrategy, Michael J. Saylor is on a roll with a Bitcoin whose weak money price now exceeds $100K.

His bold bet is paying off, so it's only logical that everyone should be asking him for his opinion on whether America should create a strategic BTC reserve.

The Bitcoin Act currently talks of a Bitcoin reserve of 1 million BTC: 200K BTC purchased every year for 4 years, to which would be added the 200K BTC already held by America. These BTCs were seized by the American government as part of legal proceedings.

A reserve of 1 million BTC would be huge enough since there can never be more than 21 million BTC in circulation. If we estimate that 2.5 million BTC are lost forever, then America would own 1 million BTC out of 18.5 million usable BTC, or 5.4% of the usable BTC supply held by a single nation.

In my opinion, this is already colossal. The Bitcoin Act specifies that America should keep this Bitcoin for at least 20 years. After 20 years, the aim would be to resell some or all of this Bitcoin to pay off the American public debt, which is already approaching $40T.

In so doing, America would be distorting the very meaning of the Bitcoin revolution. Bitcoin was conceived as a revolution to liberate the people, not as a means for a government to pay off its debt while continuing to make catastrophic decisions in the future.