Bob McElrath, former blockchain architect at Fidelity Investments, has poured cold water on the idea of creating a strategic Bitcoin reserve in the U.S., describing it as a “hopium hallucination.”
“It’s a dumb idea. Don’t expect the US to pump your bags. Bitcoin is small fry compared to the US economy,” he said.
The possibility of the U.S. government creating a Bitcoin reserve has emerged as one of the main bullish catalysts.
As reported by U.Today, MicroStrategy cofounder Michael Saylor has urged the U.S. government to sell gold in favor of Bitcoin.
Senator Cynthia Lummis of Wyoming originally introduced the idea of creating a strategic Bitcoin reserve in her bill that was filed earlier this year. The proposal has since gained signfincat traction, with many pundits debating whether or not this would be a prudent move for the U.S. government.
However, even some of the most prominent Bitcoin supporters are doubtful that the U.S. government will create such a reserve. As reported by U.Today, Galaxy CEO Mike Novogratz predicted that a Bitcoin reserve would likely fail to be implemented. However, if it does happen, the crypto mogul expects to surge as high as $500,000.
The idea has also attracted very strong pushback from some pundits outside the cryptocurrency space.
“The main argument for a Strategic Bitcoin Reserve seems to be that Bitcoin holders worry about an impending shortage of greater fools and need the US government to act as the greatest fool of last resort,” David Frum, a senior editor at “The Atlantic,” recently wrote on social media.
James Surowiecki, author of “The Wisdom of Crowds,” has opined that there is no strategic need for the U.S. to hold Bitcoin.
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.
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