What is and how it works? – Tradingvief news

Last year at the Campaign Train, President -elect Trump promised to create a “National Strategic Bitcoin Reserve”. He emphasized this intention after winning the elections, which raises many encrypted currency enthusiasts all over the world.

In an interview with him recently with Bloomberg TV, the CEO of Binance Richard Teng discussed what the American regulations and coding reserves mean for markets.

“If you look at the past four years under the administration of Biden, the process of suffocation was under progress. Therefore, there was little persecution in the United States and American players, global encryption players face a state of great uncertainty, and governments around the world were not very supportive of encryption,” Ting added. [been approached] By governments all over the world to say, “Hey, we want to look at this space now, by virtue of the fact that the United States has appointed Amnesty International and encryption that these two most important industries to support all future economies around the world. We see new optimism, and governments around the world support it.”

Before anyone celebrates a victory in the apparent encryption market, it is important to understand what Bitcoin’s strategic reserve is and how it can succeed. This is an unknown area for the United States, after all, and there can be long -term traces if the Trump administration is actually building such a reserve.

It is like an oil reserve … but different

Not so long ago, perhaps the idea of ​​preparing America, the Bitcoin Federal Reserve, had looked out of reach. With Trump’s re -election, though, the doors are open to new -friendly ideas in Washington. Richard Ting, CEO of Binance, is imagining the second presidential presidency of President Trump as the “Golden Age” of the encrypted currency, and this era can include a national bitcoin reserve.

It was granted, it is not unprecedented that the United States government creates asset reserves, whether it is a “strategy” or not. Fort Nox kept gold for several generations, for example.

The analog may be closer to the proposed strategic reserves of bitcoin, is the American oil store. This is known as SPR, and has been present since the ban on Arab oil from 1973 to 1974.

There is nothing very complicated about SPR. In fact, it is just a stock of the United States government of crude oil. Bitcoin Reserve will work in theory, in theory, in the same way, but with bitcoin stocks instead of oil.

Bitcoin reserves will surely work differently from oil stocks. Instead of barrels of crude oil that occupies a physical space, the Bitcoin Reserve will only include digital assets – and the devices needed to maintain a digital professor’s book on which these digital assets will be recorded.

Then, there will be a required use of electricity. Bitcoin National Reserve critics may argue that it will affect the environment, such as oil.

On the other hand, such as SPR, Bitcoin Reserve can help the nation prepare for the shortage. And do not make a mistake in that – there is a lack of bitcoin through its design very, because it was coded so that there is only 21 million bitcoin.

Looking to El Salvador for evidence

Although the national strategic bitcoin reserves will not be unprecedented in the United States, it will not be first on a global scale. This is because there is already a bitcoin reserves in El Salvador, which was at some point in 5500 bitcoin coins.

This experience seems well with El Salvador, so far. After creating a bitcoin reserve, El Salvador doubled more than twice the value of his investments. This success led to Tether, the company behind the USDT Stablecoin, to transfer its headquarters from the British Virgin Island to El Salvador after the company obtained a license for digital asset service provider.

However, keep in mind that although El Salvador considers Bitcoin an official currency, it also uses the US dollar as a major currency. Moreover, the dollar is widely considered a means of international trade.

Therefore, El Salvador will not likely be “disposal of the dollar” any time soon, and the United States will not even create the Bitcoin Reserve. However, if the Trump administration is seeking to strengthen the nation against dollar inflation on the road, it may choose to start storing Bitcoin in 2025.

Logistics are still unclear

Blockchain believers may imagine a huge bitcoin somewhere near the White House or Capitol Hill, or perhaps in the Silicon Valley centered around technology. However, there are after the imaginations, there is a real way to the Bitcoin Reserve, the national strategy that is not clear or easy.

Experts are still divided into whether Trump will need Congress to establish a reserve in American bitcoin, or whether this can be achieved through an executive order. After that, there is a matter of how the government will prepare bitcoin to fill the reserve.

There was a talk about the seizure of Bitcoin worth $ 21 billion of criminals, as well as the US Treasury gossip that buys 200,000 Bitcoin annually until the potential strategic reserves retained a million bitcoin. All this is in the “suggestion stage” at the present time.

Finally, it is difficult to predict how to deal with the government with the maximum price movements that Bitcoin is subject to. How will the three government branches deal with unavoidable fluctuations trips?

As you can see, there are more questions than the answers in early 2025 regarding the details of the strategic reserves of the potential American bitcoin. It is a story still in its first chapters, but it may affect the future of America for years to come.