Recently, several states in the U.S. have sparked a wave of 'buying Bitcoin,' simply put, state governments want to invest a portion of public funds in Bitcoin to prevent the depreciation of money due to inflation. This matter has attracted significant attention, involving amounts as high as $23 billion (approximately 247,000 Bitcoins), and even ordinary people can feel that cryptocurrencies are 'breaking through' into the mainstream financial system. Here are the key information points:
1. Why are states suddenly buying Bitcoin?
- Hedging against inflation risks: The U.S. has faced severe inflation in recent years, and states are worried that their money is becoming less valuable, while Bitcoin has a fixed supply (21 million), which is seen as 'digital gold' and may retain value.
- Promoting innovation: States like Texas and Pennsylvania hope to attract tech companies by supporting cryptocurrencies, boosting the local economy.
2. Which states are taking action? How do they plan to buy?
- 20 states have already advanced legislation (the '22 states' mentioned by users may be an information error; currently reported as 20 states), including Texas, Michigan, Ohio, etc.
- Investment Rules:
- Most states allow using up to 10% of fiscal funds to purchase Bitcoin, such as West Virginia and Pennsylvania.
- Currently only buying Bitcoin, as it is the only digital asset with a market value exceeding $750 billion (other cryptocurrencies currently do not qualify).
- Funds can be stored in a 'cold wallet' (similar to an offline safe), or held indirectly through a Bitcoin ETF (an investment fund).
Where does $32.3 billion come from? What impact does it have on the market?
- Sources of funds: budget surpluses from various states, emergency funds, land funds, etc.
- Market impact: $23 billion is equivalent to about 2% of the global Bitcoin market value, and if fully purchased, it could drive up the price.
The 'hoarding Bitcoin' movement among U.S. states resembles a financial experiment, both a desperate response to inflation and a bold attempt to embrace new technology. If successful, Bitcoin may transform from a 'marginal asset' into a 'strategic reserve'; if it fails, taxpayers might have to foot the bill for the government's aggressive purchases. Regardless, this trend has already brought cryptocurrencies closer to ordinary people's lives.
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