Robert Kennedy’s Idea of $622 Billion Bitcoin Reserves – How Will It Work?
Contributor
- If elected, Robert F. Kennedy wants the FED to top up its gold reserves with Bitcoin reserves.
- The potential to inject $600 billion of liquidity into Bitcoin would have a huge impact
As political temperatures heat up in the US, Bitcoin reserves have once again come to the fore. Robert F. Kennedy has expressed interest in BTC as a reserve currency.
Kennedy, an independent presidential candidate, recently announced that he supports Bitcoin. Like his rival Trump, he supports the idea that Bitcoin reserves should be added to the Federal Reserve’s balance sheet. Kennedy has a similarly ambitious idea that, if implemented, could be a very interesting development for cryptocurrencies.
Kennedy said that if elected, he would encourage the Federal Reserve to go on a Bitcoin buying spree. He said he would make it a goal to ensure the U.S. builds enough bitcoins to top up its gold reserves during his term.
“I would like to see the federal government start buying bitcoin during my term and eventually have as much #bitcoin as gold.”
Bitcoin reserves: $622 billion inflow?
According to the latest U.S. gold reserves report, there are about 8,133.46 tons of gold. At press time, a kilogram of gold cost $76,708.36. The total value of gold the U.S. owns is about $622 billion.
Bitcoin’s market cap was $1.32 trillion at the time of writing. Another $622 billion could push that number above $1.6 trillion. That would mean Bitcoin’s price would be above $82,000 and its fully diluted value would be $78,000. If the government were the only source of liquidity, the price would be above $82,000.
The US government’s demand for Bitcoin is likely to boost global demand. In other words, the currency could potentially gain more liquidity.
If the United States were to top up its Bitcoin reserves with its gold reserves, BTC would only be equal to about 2.16% of current US GDP.
What is the probability?
Bitcoin’s chances of becoming a US Federal Reserve asset are now higher than ever. Trump, largely driven by his political ambitions, has expressed interest in pursuing this path.
Bitcoin’s chances of positive outcomes and policies in the coming years seem promising.
Politics is also about making promises that are often not kept. Therefore, there is no guarantee that the FED’s Bitcoin reserves will one day become a reality.
