In a unique perspective, a cryptocurrency analyst equated Bitcoin BTC/USD to gunpowder, arguing that sooner or later sovereign nations would be compelled to adopt the leading cryptocurrency.
What Happened: Matt Huang, CEO of cryptocurrency-focused investment firm Paradigm, penned a blog post Thursday, highlighting Bitcoin’s growing prominence.
Huang argued that like gunpowder became indispensable after its discovery, the same would eventually pan out for emerging technologies like artificial intelligence, drones, and Bitcoin.
“Sovereigns can no longer afford to dismiss BTC. From a game theoretic perspective, BTC is like gunpowder, not the iPhone. Christopher,” the analyst remarked.
Huang highlighted how calls for the establishment of a Bitcoin strategic reserve have intensified since Donald Trump’s presidential victory, suggesting the opening of the Overton window for Bitcoin acceptance in America.
“Sovereigns that build BTC reserves early will benefit from significantly better entry prices. The race to build BTC reserves is on.”
Why It Matters: The Republican side vigorously promoted the idea of a Bitcoin reserve leading up to the elections, with none other than President-elect Trump vowing to establish one if voted to power.
A few days later, Senator Cynthia Lummis (R-Wyo.) proposed a bill, called the BITCOIN Act, aimed at creating a strategic Bitcoin stockpile to support America's balance sheet.
The senator reiterated her pledge following the Republican Party’s electoral triumph last week, as Polymarket odds showed a 35% probability of this happening.
Moreover, emboldened by broader support, Pennsylvania introduced the Bitcoin Strategic Reserve Act, hoping to build its own state-held Bitcoin reserve.
Price Action: At the time of writing, Bitcoin was trading at $87,824.55, down 2.35% in the last 24 hours, according to data from Benzinga Pro
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