The debate surrounding Senator Cynthia Lummis’ (R-Wyo.) recently introduced BITCOIN Act continues, with supporters and critics weighing in on the potential benefits and drawbacks of a strategic Bitcoin reserve for the United States.
Pierre Rochard, VP of Research at Riot Platforms, has stepped forward to defend the legislation, addressing common objections raised against the idea. In a YouTube video released on Tuesday, Rochard argued that the act would help strengthen the U.S. dollar and reduce the nation’s growing debt.
One of the main criticisms is that Bitcoin’s value is inherently volatile and unpredictable. To this, Rochard countered that Bitcoin’s value is driven by its underlying fundamentals, which have only strengthened over the past 15 years. He stated, “Not only has nothing changed in the negative, but nothing has gotten worse about Bitcoin. Bitcoin has only improved, so if anything, I’m more bullish on the next 20 years.”
Another argument against the reserve is that other utility assets, like oil or medicine, could be stockpiled instead. However, Rochard emphasized Bitcoin’s unique characteristics, including its decentralized nature, which makes it resistant to transfer disruptions and foreign sabotage.
Concerns have also been raised about the government’s potential control over Bitcoin, compromising its decentralized principles. Rochard clarified that the government would only control its own private keys and nodes, not those belonging to individuals or other entities.
The BITCOIN Act proposes a $1 million purchase program to acquire 5% of the total Bitcoin supply over a five-year period. Importantly, the bill stipulates that no Bitcoins held in the reserve would be sold or auctioned for a minimum holding period of 20 years.
Former President Donald Trump has also voiced support for a national Bitcoin stockpile, stating that it could potentially “wipe out” $35 trillion of U.S. debt.
While the BITCOIN Act has garnered support, it has also faced criticism from prominent figures like economist Justin Wolfers.
The debate over the BITCOIN Act continues, with proponents arguing for its potential to strengthen the U.S. economy and opponents raising concerns about its implications for Bitcoin’s decentralized nature and the potential for government control.
