Candidates left and right are on board Bitcoin’s hype train right now.
- Robert F. Kennedy intends to have the FED match its gold reserves with Bitcoin reserves, if elected $600 billion worth of liquidity potentially flowing into Bitcoin could have a major impact
Bitcoin reserves are once again in the spotlight as political temperatures in the U.S heat up. This time, another U.S presidential candidate, Robert F. Kennedy, has stepped up and expressed his interest in BTC being a reserve asset.
Kennedy, a presidential candidate on an independent ticket, recently revealed that he is pro-Bitcoin. Just like his rival Trump, he is onboard with the idea of having Bitcoin reserves in the Federal Reserve’s balance sheet. In fact, Kennedy also has an ambitious idea which if executed, would be quite an interesting development for the crypto market.
Kennedy reportedly stated that if he gets elected, he will encourage the Federal Reserve to go on a Bitcoin buying spree. He revealed that one of his goals during his tenure would be to make sure that the U.S builds up enough Bitcoin to match its gold reserves.
“I would like to have the federal government begin to buy Bitcoin and over my term in office, ultimately have an equivalent amount of #Bitcoin that we have gold.”
$622 billion worth of inflows into Bitcoin reserves?
The latest update on U.S gold reserves suggests the country has roughly 8,133.46 metric tons of gold. A kilogram of gold was priced at $76,708.36 at press time. To put it simply, the total value of gold that the U.S holds is roughly around $622 billion.
Bitcoin had a $1.32 trillion market cap at the time of writing, and an additional $622 billion would bump up that figure to north of $1.64 trillion. That would give Bitcoin a price tag of over $82,000 and a fully diluted price of roughly $78,000. This would be the case, assuming that the only liquidity flowing into Bitcoin at that point would be from the government.
In reality, demand for Bitcoin from the U.S government would likely also encourage more demand globally. Therefore, more liquidity would potentially flow into the cryptocurrency.
If the United States matches its Bitcoin reserves with gold reserves, BTC would only equate to around 2.16% of the current U.S GDP.
What are the odds?
The probability of Bitcoin becoming a U.S Federal Reserve asset is now higher than ever before. Largely driven by political aspirations, Trump has also expressed interest going down that road.
While all this remains in the realm of possibility, the odds of a favorable policies and outcomes for Bitcoin in the next few years are promising.
Politics are also all about promises that often go unfulfilled. Therefore, there is no guarantee that FED Bitcoin reserves will one day become a reality.
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