The post Alabama State Auditor Sorrell Backs Bold Plan for Strategic Bitcoin Reserve appeared first on Coinpedia Fintech News
The debate for the adoption of Bitcoin (BTC) at the state level has become a hot topic after the Russian leaders joined the wagon. The United States has been at the forefront in advocating for a strategic Bitcoin reserve since the re-election of President-elect Donald Trump.
Furthermore, top Fed officials believe that Bitcoin is a digital gold with better features including a limited supply of 21 million units. Additionally, the approval of spot Bitcoin ETFs has proved to be a major success on Wall Street, signaling heightened demand from institutional investors.
Alabama State to Lead on Strategic Bitcoin Reserve Plan
The state of Alabama could be eyeing to adopt a strategic Bitcoin reserve to ramp up local investment and businesses. According to the state’s auditor Andrew Sorell, the adoption of a Bitcoin plan will shield the people of Alabama from rising inflation and the potential impact of ongoing global de-dollarization.
“A well-balanced portfolio should include exposure to many different types of asset classes. As of now, crypto is a $3 trillion asset class that the state has zero exposure to. It is also the most rapidly growing asset class, with the greatest potential for price appreciation. Investing in Treasuries and bonds certainly has its place, but earning a 4% yield while inflation is 2.7% is barely breaking even,” Sorell noted.
Market Impact
According to Dennis Porter, co-founder of Satoshi Action Fund, the adoption of a strategic Bitcoin reserve will largely escalate the supply vs demand crisis. Furthermore, the supply of Bitcoin on centralized exchanges has dropped to a multi-year low of below 2.26M amid heightened demand from whale investors.
With the United States seeking to purchase around 1 million Bitcoin in the next five years under the Trump administration, the overall supply will heavily shrink and result in a super bull cycle.
On Tuesday, Eric Trump, the executive vice president of the Trump organization, forecasted that Bitcoin price will easily reach $1 million after recently reaching $100k for the first time.