The creation of a Bitcoin Strategic Reserve (SBR) in the United States is a “monumental approval” of the largest cryptocurrency in the world, the HC Wainwright broker said in a research report on Monday.
The movement experiences the “legitimacy of Bitcoin in the most precious asset of humanity: gold”, wrote analysts Kevin dede and Michael Donovan.
President Trump ordered his administration to form a Bitcoin strategic reserve to hold the assets that have been seized by the government. He also called for a stock of other types of cryptocurrencies.
The SBR “considerably improves the institutional position of Bitcoin, clearly marking it as a sovereign value store”, wrote the authors.
The investigation of the decree so as not to sell Bitcoin seized also neutralizes the concerns of liquidation by the American government, according to the report.
Treasury and trade services were responsible for developing the federal government’s bitcoin battery using non -budgetary methods, notes the report. This is a sign of a long -term commitment, without any additional burden on taxpayers.
The adoption by Texas of SB-21, a bill that would allow the State to invest in public funds in Bitcoin, compliments the measures taken by the federal government and could lead to other states adopting similar policies, said the broker.
Bitcoin status as a new cash reserve asset could attract major holders, such as nation states and public enterprises, to develop their assets, said HC Wainwright.
The intrinsic advantages of cryptocurrency, including “rarity, world transfer without friction and resilience against inflation make it more and more attractive compared to the market capitalization of 20 billions of dollars of gold,” added the report.
Read more: Strategic Bitcoin Strategic Reserve, Crypto Stockpile A “Pivot moment” for the industry: KBW
