As speculation about the potential of Donald Trump developing a strategic Bitcoin reserve in america (US), one crypto pundit has laid out a compelling sequence of events they imagine must occur before such a move becomes a reality. The pundit’s evaluation centres around key figures like Ross Ulbricht, the founding father of Silk Road and the role of the US marshals in managing the seized Bitcoin assets.
When The US Bitcoin Reserve Will Be Announced
A crypto pundit often known as ‘Bio99’ on X (formerly Twitter) asserts that Ulbricht’s recent release from prison was a crucial first step toward announcing a strategic Bitcoin reserve. In line with his X post, Trump could never, in good conscience, create a Bitcoin reserve without addressing the origins of a good portion of the US government-held BTC—the Silk Road seizures.
For more context, Ulbricht launched the Silk Road online marketplace in 2011, allowing users to purchase and sell illegal goods and services, primarily drugs, using BTC as a payment currency. The US authorities first arrested Ulbricht in 2013, halting Silk Road’s operations.
Together with the arrest, the US seized roughly 26,000 BTC, price over $3.5 million on the time. An extra 69,370 BTC was confiscated by the US Department of Justice (DOJ) in 2020. Following the seizure, the US government sold a few of Silk Road’s Bitcoin while its founder was convicted on multiple charges. Ulbricht was sentenced to life in prison without the potential of parole, sparking concerns over the fairness of his sentence as many advocated for his freedom.
Moving forward, Bio99 revealed that before the US can take full ownership of Silk Road’s BTC, they would want to release Ulbricht first, and this event could never occur until Trump secures the liberty of the “January 6 defendants”. The crypto pundit argues that keeping the Silk Road founder imprisoned while leveraging his Bitcoin assets for national purposes would have sparked public outrage.
Addressing other concerns, Bio99 claims that before Trump can announce a Bitcoin reserve, he must implement additional key measures. These include freezing government hiring, curbing illegal immigration, and championing investments in latest technologies. In line with the pundit, once these foundational moves have been put in place, the event of a BTC Reserve may very well be a near-term possibility
Next Steps: AI Investments And Repeal of SAB
Bio99 has described Bitcoin as an asset for the US dollar, the Treasury, and the stock market. The crypto pundit reveals that Trump’s recent advocacy for investments in Artificial Intelligence (AI) and other emerging technologies signals the groundwork for the broader support and announcement of a Bitcoin Reserve within the US.
Speculation further connects SpaceX and Tesla CEO Elon Musk, highlighting his recent silence on Bitcoin and public comment in regards to the release of Ulbricht and the January 6 defendants. Furthermore, the ultimate anticipated step toward a Bitcoin reserve could be revoking the Securities and Banking Act (SAB), enabling banks and firms to create their very own reserves.
Featured image from Unsplash, chart from Tradingview.com