U.S. Proposes Strategic Reserve: Plans to Acquire 1 Million Bitcoins in 5 Years
Well, what happened on March 11, 2025, in the United States. Well, people became disillusioned, basically because, well, the United States wasn't going to buy cryptocurrencies, but rather was going to keep the cryptocurrencies it had already seized through legal proceedings. And that was it. It changed because on the 11th, City Alumina reintroduced Bitcoin in the Senate, and there's a lot of news I want to discuss with you. To start, there's a real change: the United States is indeed starting to buy crypto. So, I'm going to tell you what cryptocurrency the United States would buy. How much would it buy? For how long would it hold it? What is the real chance of this happening? And how long could it take for all this to happen? I'm going to tell you in this absolutely unmissable, very rushed, and very urgent video. And, well, as I always say, investments in cryptocurrencies are considered high risk.
On March 11, 2025, Senator Cynthia Lumins reintroduced the Bitcoin Act in the United States Senate. What is the Bitcoin Act? Basically, it's legislation that proposes four fundamental things. The first is that the Treasury Department manage the acquisition of up to 1 million bitcoins over 5 years. If 1 million bitcoins seems like a lot to you, it's because it's absurd. We're talking about 5% of the Bitcoin supply. To continue, she says that the Bitcoin Act states that the purchase must be financed with net earnings from the Federal Reserve and adjustments to the valuation of Treasury gold certificates.
To continue, it says that a decentralized storage network must also be established to protect bitcoins from any attack or confiscation attempt. This is super important because, well, let's remember that North Korean hackers are raging, and a hack cost Bybit, the exchange, about $1.4 billion a week and a half ago. And finally, the Bitcoin Act says that all acquired bitcoins must be retained for at least 20 years with restrictions to prevent massive sales that impact the market. That is, the United States would not only buy a million bitcoins, but it will also hold them for at least 20 years, and there will also be clauses that prohibit. It's good that the market is dampened, basically, a massive sale of bitcoins that liquidates the market. What are the chances of all this happening because up to here we are uncorking champagne on everyone? What is it? The real chance of this happening, well, well, let's see how the chambers of the United States are composed to see if there is indeed a possibility that this will be approved because, let's remember, the Democrats are very anti-crypto. Well, the United States House of Representatives has 220 Republican seats, while the Democrats have 215. The Senate is made up of 53 Republican seats and the Democrats have 47. That means that, in theory, the Republican Party has enough votes to pass the law without depending on the opposition. But, well, let's not uncork the champagne yet because, although the numbers are there for all of this to be approved, not all Republicans are convinced. So, we're going to have to do a fine job to try to get the Republican majority to act on this. And now, let's answer the last question because I can't close the video without telling you how long it could take.
Take this to be approved. Because surely you want to know how long it will take in Pampa, how long will it take for the United States to go out and buy bitcoin? If this is approved, well, well, I asked Artificial Intelligence to create three scenarios for me: one optimistic, one medium, and one pessimistic. The pessimistic scenario is obviously discounted, more than 4 years, and it won't be approved directly. But let's go with the optimistic one. And with the medium one. In an optimistic scenario, approval of the Bitcoin Act could be achieved in 6 to 12 months. That obviously depends on the proposal moving quickly through all the approval committees. And well, the United States should start buying bitcoin in the next 6 months, which would be completely crazy. The intermediate scenario seems more realistic to me: it will be 1 to 3 years, and that will involve debates, and there will be meetings. I think we're going to go that way. We're talking about the Bitcoin Act possibly being active in a A period of one to three years—let's say a year and a half—seems like a good round number, but if the United States goes out and buys 5% to 5% of the Bitcoin supply to hold for 20 years, it changes the reality of the entire market.