Economist Urges U.S. Government to Sell Bitcoin Holdings, Citing Potential Economic Benefits

A popular economist has recently proposed that the U.S. government should liquidate its entire Bitcoin holdings, suggesting that this move could help reduce the 2024 budget deficit.

Popular Bitcoin critic Peter Schiff believes that selling off the country’s BTC reserves would also put an end to discussions about creating a “Strategic Bitcoin Reserve,” a concept proposed by former President Donald Trump. This action, he argues, would prevent future complications for the next administration and ensure that campaign promises about not selling government-held Bitcoin remain intact.

These remarks come after the economist warned that Bitcoin could potentially harm the U.S. dollar, contributing to inflationary pressures and leading to a destabilizing financial bubble. Schiff contends that the government’s further Bitcoin acquisitions could lead to the squandering of national wealth.

However, despite these concerns, efforts are underway to create a U.S. Bitcoin reserve. Senator Cynthia Lummis has introduced the “Bitcoin Act of 2024,” which would authorize the government to accumulate up to 1 million BTC over the next four years. This legislation could move forward even if the Biden administration sells its current holdings.

At present, the U.S. government controls over 198,000 BTC, valued at roughly $19 billion, and recently moved $1.9 billion worth to a new address, fueling speculation about possible sales. Nevertheless, legislative proposals like the Bitcoin Act suggest that the government’s involvement in Bitcoin could continue regardless of these moves.