'Bitcoin Has Reached Escape Velocity': Michael Saylor Urges US To Buy 20% Of BTC Supply, Use It To Clear National Debt

On 20th February, MicroStrategy co-founder Michael Saylor urged the US to buy 20% of the Bitcoin supply as a strategic reserve during his speech at the Conservative Political Action Conference (CPAC) in Washington, DC.

'There's only room for one nation-state to buy up 20% of the network, and I think it should be the United States,' said Saylor, arguing it would enable the country to secure a dominant position in the digital asset space as China, Russia, Saudi Arabia, and European countries rapidly boost their stake in the cryptocurrency.

While highlighting the benefits of a Bitcoin reserve, Saylor underscored that it could be used to pay off the mounting national debt. 'The dollar would strengthen, the nation would be enriched, and if you own 4 to 6 million BTC, you are going to pay off the national debt.' he explained. Experts believe that reducing the national debt is one of the most effective ways to fight sticky inflation.

Purchasing 20% of the Bitcoin supply at the current price would mean an investment of almost £309.34 billion ($392 billion) for 4 million tokens. However, Saylor rejected the idea of including other cryptocurrencies in a US strategic reserve. 'Bitcoin is a commodity, an asset without an issuer,' he said. 'No company, individual, or country can corrupt it, and it has reached escape velocity.'

'Satoshi gave us a strategy that empowers individuals and companies beyond the reach of traditional monopolies,' he added while pointing to the global transition from physical to digital assets.

Saylor Thinks Bitcoin Will Reach £3.96M per token In The Long Run

MicroStrategy has the largest corporate Bitcoin portfolio, owning over 478,000 tokens valued at an estimated £37.07 billion ($47 billion) with an average dollar-cost buying price of £51,276 ($65,000) per coin. Despite such monumental holdings, Saylor wants to buy more before the cryptocurrency becomes unaffordable.

In the second half of 2024, Saylor highlighted that Bitcoin prices would reach £3.96 million per coin in the long run due to several catalysts, like the approval of spot Bitcoin ETFs, banks potentially taking custody of Bitcoin and offering debt against it, and fair value accounting for the crypto on corporate balances sheets.

Even without these catalysts, Saylor is confident Bitcoin prices could reach almost £400,000 in the next 36 months. He explained that BTC is on track to surpass gold as the dominant store of value and could play a major role as an inflation hedge.

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