The recent proposal by the elected president of the United States, Donald Trump, to create a strategic reserve of Bitcoin has generated significant debate in the financial and technological community. This initiative could alter the traditional four-year boom and bust cycle associated with cryptocurrencies, especially Bitcoin.
The Four-Year Cycle of Bitcoin
Historically, Bitcoin has experienced cycles of approximately four years, marked by significant increases and decreases in its value. These cycles are closely related to the "halving," an event that halves the reward for mining new blocks, decreasing the supply of new coins and generally increasing its price due to scarcity. Instagram
The Proposal for a Strategic Bitcoin Reserve
Donald Trump has expressed his intention to establish a strategic reserve of Bitcoin, similar to the gold and oil reserves held by the U.S. government. The plan consists of acquiring one million bitcoins over the next five years, positioning the United States as the largest owner of this cryptocurrency.
Potential Impact on the Cryptocurrency Cycle
The creation of a strategic Bitcoin reserve could have several implications:
Market Stabilization: The massive and sustained acquisition of Bitcoin by the government could reduce market volatility, as an entity with significant financial capacity would be buying consistently, damping typical fluctuations.
Increase in Institutional Demand: Government participation could further legitimize Bitcoin, encouraging other institutions and countries to consider similar investments, which would increase demand and could prolong growth periods.
Research Source $BTC