Latest news with #BitcoinStrategicReserve
Express Tribune
3 days ago
- Business
- Express Tribune
Bitcoin Strategic Reserve
Listen to article Pakistan's recent announcement of a state-backed Bitcoin Strategic Reserve is the latest in a series of major shifts in global crypto policy and is earning simultaneous praise and consternation. Though the policy change comes on the heels of the US setting up its own strategic crypto reserve — the largest in the world — the US reserve has been populated with only recovered and seized crypto, and the country has been clear that it does not intend to get involved in mining. Pakistan, on the other hand, must learn from the experiences of El Salvador, which became the first country to fully legalise crypto in 2021 and the first to have a crypto-induced economic crash a year later. Despite Bitcoin having recovered its price since El Salvador has had to scale back crypto purchases and mining to meet the terms of an IMF bailout that was necessitated by the failure of crypto to help improve its teetering economy, which advocates had promised was a sure thing — something that should ring familiar for Pakistanis. Our Bitcoin czar, Bilal Bin Saqib, recently said assets would "never, ever be sold" as a long-term bet on decentralised finance. While this may help a country benefit from price appreciation in the long run, Pakistan's foreign reserves are often little more than pocket change, leaving little wiggle room to spend on crypto without sacrificing elsewhere. Also, Bilal skipped over the point that Bitcoin is still technically illegal in Pakistan under SBP and SECP rules. The pivot to crypto is a high-stakes gamble which, if executed transparently, could attract foreign investment and foster financial inclusion. But the current approach feels more like a technocratic fantasy, that could prove to be two steps back for the economy and a great leap forward for corruption. After all, the Bitcoin advisors include Binance, which does business with the children and companies of President Trump, and World Liberty Financial, which is majority-owned by the Trump family and includes investors who faced fraud charges until the Trump administration dropped the cases against them. Or maybe that is the goal — investors have dropped billions into Trump-owned crypto products. Most of that money will end up in the Trump family's pockets, while the investors have seen benefits ranging from pardons to favourable White House policies.
Gulf Insider
25-05-2025
- Business
- Gulf Insider
Bitcoin to $1 Million by 2028? Arthur Hayes Says It's Inevitable.
Arthur Hayes, the outspoken co-founder and former CEO of BitMEX, is no stranger to volatility, be it in markets or in politics. But when he predicts that Bitcoin will hit $1 million by 2028, it is a macroeconomic thesis grounded in decades of monetary policy missteps, geopolitical recalibration, and the slow-motion collapse of the fiat system born in 1971. A System Built On Sand Hayes sees Bitcoin's price action as a structural response to the erosion of financial sovereignty. When the U.S. decoupled the dollar from gold in 1971, it created a global financial system reliant on credit issuance, massive debt accumulation, and central bank intervention. 'The people who benefited the most are those who issue credit – commercial banks,' Hayes explains. 'And anyone who challenges their dominance tends to fall afoul of regulators.' From his perspective, Bitcoin's rise is not a random fluke, it's a very clear reaction. A decentralized, scarce, programmable asset stands in stark contrast to the highly centralized, inflationary fiat model. The Trump Factor And The Strategic Reserve Illusion Hayes is less impressed by politicians claiming to embrace Bitcoin, especially when it is there to serve a populist narrative. Take President Trump's Executive order on the Bitcoin Strategic Reserve, while the move grabbed headlines and delighted many in the Bitcoin and crypto community, Hayes remains sceptical. 'Governments buy assets for political reasons and sell them for political reasons,' he warns. 'Why tether your financial future to the whim of politics?' He doesn't see this as actual adoption, but only as a tactical appeal to voters disillusioned by deindustrialization, wage stagnation, and the rise of big finance. Still, the political interest in Bitcoin, no matter how superficial, signals a shift in how governments perceive the role of digital assets in a post-dollar world. Stablecoins Will Lead, But Bitcoin Will Reclaim The Narrative In the short term, Hayes argues that stablecoins, particularly USD-backed ones like USDT, will see greater real-world adoption, especially in regions with limited banking access. 'People want dollars, not volatility,' he notes, citing the Middle East, as a major growth market for stablecoins. Afterall, the Arab region's population is only approximately 40% banked according to the ESCWA Annual SDG Review 2025. But that doesn't mean Bitcoin loses its edge in the stablecoin game. Quite the opposite. Hayes predicts Bitcoin dominance will rise to 70% just before we will see unprecedented price action to $1 million. Why $1 Million Bitcoin Isn't As Wild As It Sounds At the heart of Hayes' forecast is one simple principle: the fiat system must inflate or collapse. Either path fuels Bitcoin's rise. 'The amount of money that will need to be printed just to maintain the current economic structure is staggering,' he explains. 'That's what's going to propel Bitcoin.' Whether or not governments buy Bitcoin is secondary. Their policies of debt expansion, currency debasement, and geopolitical fragmentation will drive more capital into decentralized stores of value. In other words, Bitcoin doesn't need the Government's buy-in or permission to win. We just let governments do their thing, and this leads to Bitcoin winning. Beyond Price: A New Financial Era Hayes' prediction of $1 million isn't rooted in hype. It's based on deep scepticism about the longevity of the current financial order and belief that a decentralized alternative is not only possible but necessary. 'This isn't just about crypto,' Hayes concludes. 'It's about dismantling a system that no longer works and building something better.' Whether Bitcoin reaches $1 million by 2028 remains to be seen. But the conditions that could make it happen are already here.
Yahoo
12-05-2025
- Business
- Yahoo
5 Reasons You Need at Least 1 Bitcoin
Bitcoin has captivated many investors due to its incredible long-term returns, but its volatility has kept some investors on the sidelines. The leading cryptocurrency regularly sees sharp fluctuations that can push it up or down by 10% in a matter of days. Explore More: Try This: Not every investor wants to deal with that level of uncertainty, but you can't question the results if you compare it to popular benchmarks like the S&P 500 and Nasdaq Composite. The cryptocurrency also recently reclaimed $100,000 per coin and may head higher. If you are on the fence with Bitcoin, these are some of the reasons to consider getting started. Although Bitcoin doesn't produce revenue and net income growth like publicly-traded corporations, the returns are unquestionable. Bitcoin has risen by 68% over the past year and has soared by 978% over the past five years. The S&P 500 and Nasdaq Composite haven't even doubled over the past five years. Bitcoin has proven to be a viable way to multiply your money. While results are not guaranteed, many investors use long-term returns to assess momentum and investors' appetite for an asset. Bitcoin has hit the mark for a long time despite the narrative around uncertainty. Find Out: Last year was a big one for Bitcoin. Spot Bitcoin ETFs began trading on Jan. 11, 2024, and many financial institutions rushed to offer their own. BlackRock, Fidelity, ARK Invest, VanEck, and Grayscale are some of the firms that launched Bitcoin ETFs. Each of those ETFs puts more money into Bitcoin, and that leads to upward pressure on the price. Bitcoin ETFs have made the digital currency more accessible for everyday investors, and this trend can catapult Bitcoin higher in the long run. President Donald Trump established the Bitcoin Strategic Reserve with an executive order. This strategic reserve can boost the demand for crypto and lead to more gains for investors. While the Bitcoin Strategy Reserve is relatively old news, it can ripple into individual states. For instance, Arizona recently became the second U.S. state to create a Bitcoin Strategic Reserve. It's possible for more states to follow the trend, and each commitment requires more Bitcoin purchases. Bitcoin also serves as a valuable inflation hedge that gives it more value as central banks print more money. There are only 21 million Bitcoins available, and it is impossible for anyone to increase the supply. That's the beauty of Bitcoin's decentralized blockchain. Investors who want a historically successful asset that can minimize inflation risk may want to take a closer look at this alternative asset. Universal currencies give people more control and allow them to avoid foreign exchange fees. If an American goes to the United Kingdom, they have to pay fees to convert their U.S. dollars into British pounds. Then, if you travel to any country in the European Union, you have to convert some of your U.S. dollars or remaining British pounds into euros. It's a cumbersome and expensive process for regular travelers who make frequent purchases. Some credit cards also have foreign transaction fees that hike costs for paperless transactions. Bitcoin avoids those fees when it is used for purchases. The long-term premise of the cryptocurrency is attractive for people who want to save money on foreign exchange fees. Right now, Bitcoin is still in its early innings compared to fiat currencies. At some point, Bitcoin's annualized growth rate will slow down. However, Bitcoin's nature as a universal currency should boost its appeal in the years ahead. More From GOBankingRates Mark Cuban: Trump's Tariffs Will Affect This Class of People the Most How Far $750K Plus Social Security Goes in Retirement in Every US Region How To Get the Most Value From Your Costco Membership in 2025 12 SUVs With the Most Reliable Engines Sources Bitcoinist, 'Arizona Passes Bitcoin Reserve Bill, Becomes Second US State.' This article originally appeared on 5 Reasons You Need at Least 1 Bitcoin
Yahoo
01-05-2025
- Business
- Yahoo
Eric Trump Warns Banks Could Be 'Extinct In 10 Years' If They 'Don't Watch What's Coming,' Touting Blockchain As 'Better' Alternative
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Eric Trump, executive vice president of the Trump Organization and the younger son of President Donald Trump, criticized the current financial system as outdated and inefficient, suggesting that cryptocurrency offers a faster and more cost-effective alternative. What Happened: Speaking this week in Dubai, he warned that traditional banks could become obsolete within the next decade if they fail to adapt. In a thorough critique delivered during his visit to the UAE, which is an emerging hub for digital currencies, Trump called SWIFT "an absolute disaster." Trending: Trade crypto futures on Plus500 with up to $200 in bonuses — no wallets, just price speculation and free paper trading to practice different strategies. He said, "there's nothing that can be done on blockchain that can't be done better than the way that the current financial institutions are working," in a conversation with CNBC. "The modern financial system is broken, it's slow, it's expensive," he said. "If the banks don't watch what's coming, they're going to be extinct in 10 years." He argued that decentralized finance allows for private, low-cost transactions and said that the U.S. banking system "favors the ultra-wealthy" and is politically weaponized. To establish his point about the increasing irrelevance of banks, Trump said: "You can open up a DeFi app right now, you can open up any cryptocurrency app, and you can send money, wallet to wallet, instantaneously, without the expense, without the variability" of banks. Why It Matters: Trump's remarks come at a time when major banks like JP Morgan are creating blockchain platforms and crypto services to keep up with the rapid scale of digital transformation. His comments also coincide with increasing regulatory scrutiny of crypto markets after notable episodes of volatility and collapses. Meanwhile, the Trump administration has fashioned itself as a champion of digital currencies, and the Trump family is entangled with initiatives such as the World Liberty Financial and American Bitcoin. Eric Trump's comments come just ahead of his father's scheduled trip to the Gulf from May 13 to 16, with stops in the UAE, Saudi Arabia, and Qatar. The visit will mark the first time a U.S. president has visited the Emirati sheikhdom since George W. Bush in 2008. Trump, dubbed the 'crypto president,' recently completed his first 100. While he delivered on his campaign promise to establish a national Bitcoin Strategic Reserve, funded with coins seized through asset forfeiture, the move hasn't put a stop to Bitcoin's slide. The cryptocurrency, which hit an all-time high of $109,000 before Trump's inauguration, has since fallen more than 13%. Analysts attribute the decline to increasing economic turmoil catalyzed by Trump's aggressive tariff policies. Despite a brief rebound from a low of $76,000, Bitcoin remains far below its peak. Read Next: New to crypto? Get up to $400 in rewards for successfully completing short educational courses and making your first qualifying trade on Coinbase. A must-have for all crypto enthusiasts: Sign up for the Gemini Credit Card today and earn rewards on Bitcoin Ether, or 60+ other tokens, with every purchase. Image Via Shutterstock Send To MSN: Send to MSN This article Eric Trump Warns Banks Could Be 'Extinct In 10 Years' If They 'Don't Watch What's Coming,' Touting Blockchain As 'Better' Alternative originally appeared on Sign in to access your portfolio
The Intercept
19-04-2025
- Business
- The Intercept
The Galaxy Brains of the Trump White House Want to Use Tariffs to Buy Bitcoin
If Donald Trump's sweeping global tariffs send household good prices soaring and drive the economy into recession, at least one industry could profit. The Trump administration is considering using tariff revenues to buy Bitcoin for a 'Strategic Bitcoin Reserve,' a top administration crypto official said in an interview last week. The White House's proposal is driving interest from crypto industry figures who have made building the reserve one of their top priorities. It is uniting critics on the right and left, however, who have cast the reserve as a pointless industry giveaway that will come at the expense of ordinary taxpayers. Using tariff money would add insult to injury, they say. 'There is nothing here but a conjunction of bad ideas,' said George Selgin, an economist and professor emeritus at the University of Georgia. 'The tariffs are a bad idea, the Bitcoin Strategic Reserve is a bad idea, and using the tariff revenue for the Bitcoin Strategic Reserve is a bad idea.' Reaping Revenue? Ever since Trump proposed across-the-board tariffs on the campaign trail last year, he has touted the idea as a way to both build domestic industry and raise revenue. Trump has suggested that tariff revenue could replace the nearly $5 trillion the government hauls in income tax revenue per year, while a top trade official in his administration estimated they could raise $6 to $7 trillion over a decade. Both numbers are fantasies, according to economists of all political stripes. The nonpartisan Tax Policy Center said the massive tariffs — if they all go into effect as initially proposed on 'Liberation Day' — could raise about $3.3 trillion over that period, assuming they don't send the economy into a tailspin. The relatively meager scale of the tariffs' revenues has not stopped the Trump administration from cooking up ideas for how to spend them on everything from tax cuts for the rich to deficit reduction. Last week, Bo Hines, the executive director of the Presidential Council of Advisers on Digital Assets, added another proposal to the mix. In an interview with investor and crypto influencer Anthony Pompliano, Hines said the administration could use tariff revenue to buy bitcoin. 'We are looking at many creative ways, whether it be from tariffs, whether it be from something else,' Hines said. 'Everything is on the table, and like we have said, we want as much as we can get.' The White House did not respond to a request for comment Friday. When Trump announced that he wanted to create a 'strategic reserve' of bitcoin at a crypto conference last July, it cemented his place as the industry's favored presidential candidate. Supporters have cast bitcoin as a modern-day gold with near-limitless future growth potential. Socking it away could protect against depreciation of the U.S. dollar and inflation, they say. Trump followed through on his promise almost as soon as he was in office by creating the reserve — but he disappointed some bitcoin boosters by stocking it only with tokens that had already been seized by the government. Still, Trump promised that he would search for 'budget-neutral' ways to buy more bitcoins. Tariffs could be one way of building the store, according to Hines. But they would hardly be budget-neutral, Selgin said, since they are essentially a tax on the consumers buying imported goods. The tariffs would have a disproportionate impact on low-income households, according to the Budget Lab at Yale University, which calculated they would cost an average household $3,800 per year. Regardless of how they pay for it, critics say that it's inappropriate for the government to buy up an asset like bitcoin with no inherent use that is subject to wild price swings — and, in fact, has dropped in price since Trump's tariff announcement. If the government does wind up buying bitcoin, critics have warned, selling any substantial portion of it could depress the digital asset's price. 'You have a lot of people in the bitcoin community, bitcoin bulls who would like to see the government do a lot more, because it will benefit them,' said Selgin, who also serves as a senior fellow at the libertarian Cato Institute. 'These people are trying by hook or by crook to rationalize something that really is just a subsidy for them, without any benefits for other people.
