Trump's Inauguration Approaches, U.S. Bitcoin Reserves Spark Intense Debate

As Donald Trump's inauguration approaches, the proposal for Bitcoin reserves has ignited intense discussions. Trump's policies could drive the U.S. to adopt Bitcoin as a reserve asset, a move that has garnered fervent support from cryptocurrency advocates while drawing strong opposition from economic experts.

**The 2024 Bitcoin Act** proposed by Senator Cynthia Lummis plans to compel the Treasury to purchase 200,000 Bitcoins annually, totaling 1 million Bitcoins over five years. This legislation aims to alleviate the debt burden through Bitcoin reserves, with some experts suggesting it could be the only way to escape the decline of the dollar.

Some crypto experts believe that Bitcoin reserves could help the U.S. escape rampant inflation and debt crises, restoring trust in the currency. Jan3 CEO Samson Mow believes that by accumulating Bitcoin reserves comparable to gold reserves, the U.S. will be able to eliminate debt through Bitcoin appreciation in the future.

However, economists like Bill Dudley warn that if the U.S. uses Treasury borrowing to buy Bitcoin, it could raise debt costs and trigger inflation. Nic Carter also points out that the U.S. economy is vast, and Bitcoin reserves could undermine the stability of the global financial system.

Despite the controversy, the Bitcoin Act is still awaiting approval, and it is expected to be delayed for several months after Trump takes office. Analysts speculate that Trump may quickly initiate a Bitcoin purchasing program through executive order. However, considering the legal and procedural challenges involved, the full adoption of Bitcoin reserves in the U.S. may still take several years.

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