Key Takeaways
- Michael Saylor suggests Bitcoin should be the primary asset in a potential US strategic reserve.
- The US government holds approximately 200,000 Bitcoin worth about $17 billion.
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Michael Saylor said that Bitcoin is the foundational asset of the crypto economy, and that its decentralized nature uniquely qualifies it as a US reserve asset.
“Bitcoin is the one universally agreed upon foundational asset in the entire crypto economy because it’s the asset without an issuer. It’s neutral,” said Saylor, speaking on Fox Business Network’s “The Claman Countdown” on Wednesday. “99% of the energy and the capital has flown into that one.”
According to Saylor, whose company owns nearly 2.4% of the total Bitcoin supply, Bitcoin serves as a secure savings vehicle for individuals, companies, and governments. He described it as “property in cyberspace,” an asset class without an issuer that allows for long-term wealth preservation.
“So if you think about Bitcoin as cyberspace, then the logic behind a Bitcoin strategic reserve is not so much you’re storing up Bitcoin. It’s really that you’re taking control of planting the flag in cyberspace because the digital economy is going to be capitalized on Bitcoin,” Saylor said.
Saylor suggested that Bitcoin represents a new kind of property—digital land—that the US must secure before foreign competitors do. He warned that failing to act now could allow other nations to dominate the digital financial space.
“If you get there first…before the foreigners, before the Europeans, the Africans, the South Americans, the Russians and the Chinese, the US can own it and benefit from it,” Saylor noted.
According to David Bailey, who will join Saylor and other industry leaders at the upcoming White House Crypto Summit, China is actively working on a strategic Bitcoin reserve, though details have never been published.
Addressing concerns that government adoption contradicts the original vision of Bitcoin as an independent, non-governmental asset, Saylor stated Bitcoin’s protocol was designed for universal adoption, empowering individuals, businesses, and even nation-states.
He believes that any country seeking economic stability and financial sovereignty will eventually turn to Bitcoin as a strategic asset.
Should the reserve hold other crypto assets?
While Saylor acknowledges the role of stablecoins and tokenized securities in financial markets, he insists that Bitcoin alone qualifies as a reserve asset. He believes other digital assets serve different functions within the digital economy.
“Their role is capital creation for the small and midsize companies that are blocked from the capital markets right now,” he said. “I think that it’s wise to capitalize a country or a company on a commodity, an asset without an issuer, something like a property…Bitcoin is a commodity,” Saylor stated.
When asked about Ripple’s XRP, Saylor said it was a digital token, an asset with issuers that provide digital utility that is very “interesting and compelling.”
Saylor indicated that the executive order would decide if other crypto assets could be included in a sovereign wealth fund.
“I think the emerging consensus in the industry is that Bitcoin should be the element in a strategic reserve over the long term for the country,” said Saylor, when asked whether assets like Solana, Cardano, or Ripple should be included in the US crypto reserve.
If given the opportunity to advise policymakers, Saylor stated that his recommendation would be to establish regulatory clarity regarding digital assets. He stressed the need to differentiate between digital commodities like Bitcoin, digital currencies, and digital securities.
According to Saylor, once a clear framework is established, he advocates for the transparent and deliberate acquisition of Bitcoin to bolster the country’s financial strength.
Saylor’s stance mirrored that of crypto leaders, including Tyler and Cameron Winklevoss and Brian Armstrong, on Bitcoin’s foundational role.
Winklevoss has warned that delaying stockpiling Bitcoin could result in higher costs, reduced geopolitical influence, and loss of financial sovereignty.
Coinbase CEO, while not directly opposing the idea of altcoin-based reserves, believes that Bitcoin is the most reliable option for a long-term digital asset reserve due to its status as a store of value.
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