Recently, there has been a lot of talk about Bitcoin (BTC). One well-known crypto expert, Andrew Kang, even said that Bitcoin might become a national asset. The cryptocurrency community is buzzing about this interesting idea, with people talking about how it might affect the whole world and setting crazy price goals for the crypto.
From Speculation To Advocacy
A lot of people are arguing about Andrew Kang’s latest research. In a highly shared post, Kang said that some leaders are talking more and more about adding Bitcoin to the treasury funds. Even though these talks are still just a guess, the fact that they are happening shows that Bitcoin could have a hugely good result for some people but not for others.
Kang says that these plans show Bitcoin’s hidden promise, even if they don’t work right away. If Bitcoin becomes a real treasure for the country, he thinks its value could go through the roof and reach $1 million. He added that Bitcoin’s current market capitalisation is much lower than it should be, even with a low likelihood of 5–10%. This is especially true since interest in Bitcoin has recently grown from less than 1%.
$BTC now being rumored to be pushed forward as a national asset held as treasury reserve as a platform for many politicians
Whether they are successful or not in the first attempt, doesn’t matter because BTC now has an extremely visible asymmetric upside scenario
— Andrew Kang (@Rewkang) July 19, 2024
A Domino Effect On Adoption Around The World
The idea that the US might use Bitcoin as a backup currency for the government is very important. Kang says that if the US did something like this, it would probably cause other countries to do the same. This would not only prove that Bitcoin is a good way to keep value, but it would also speed up its use in financial markets around the world.
Rumours of a big Asian company taking on jobs similar to those of Coinbase and MicroStrategy are making people even more optimistic. This change would make Bitcoin look better and make more companies want to invest in the crypto market.
Kang pointed out how quickly these good things are happening, which makes him think that the next few months will be very crucial for Bitcoin and people who support it. The crypto asset could enter a new era with the help of government backing, the possibility of widespread use, and growing business interest.
Getting The Benefits And Risks Right
Even though Bitcoin as a national asset could be very helpful, the idea is very hard to carry out. If the US government recognises Bitcoin, it could improve its place as a world leader in finance, especially when compared to China and Russia. It could support new ideas, bring in experts in blockchain technology, and lead to the creation of a complete regulatory system that makes cryptocurrency transfers safer and promotes widespread use.
It’s not possible to avoid the risks, though. Bitcoin’s extreme instability is a major threat to the security of the economy. If the value of Bitcoin drops quickly, it could mess up the economy and make it harder for the government to control money.
Policymakers would have to be very careful to find a balance between the need for new ideas and the need for a safe and stable banking environment. Adding Bitcoin as a strategic backup asset could greatly increase its credibility in the financial world, but this must be carefully considered in light of the risks to the overall economy and customer safety.
The Road Ahead
The talk about Bitcoin becoming a national asset shows how well known it is becoming and how it could change the way global finance works. With important price goals and the chance to start a global trend, Bitcoin is about to go through a huge change.
Going forward, however, will be hard and needs careful planning. In the coming months, it will be very important to see whether Bitcoin becomes a solid part of national financial systems or stays a speculative currency with a lot of unrealized potential.
Featured image from Pexels, chart from TradingView