Donald Trump's re-election emphasizes his ambition to position the U.S. as the 'crypto capital of the world,' with Bitcoin potentially playing a role in addressing the national debt.

As he prepares to take office, Trump has proposed establishing a 'Strategic National Bitcoin Stockpile,' akin to the Strategic Petroleum Reserve, to hold a substantial amount of Bitcoin.

This initiative includes a legislative proposal from Senator Cynthia Lummis for the U.S. to acquire 1 million bitcoins over five years, funded by revaluing $11 billion in gold certificates.

Trump aims to attract a growing voter base interested in Bitcoin and digital currencies, viewing these assets as vehicles for economic growth and reform.

The price of Bitcoin has surged over 100% in 2024, partly fueled by Trump's crypto-friendly proposals and the anticipated establishment of a Bitcoin reserve.

Advocates argue that a U.S. stake in Bitcoin could enhance government control over the cryptocurrency and prevent other nations from undermining the U.S. dollar.

Trump contends that creating a Bitcoin reserve is crucial for the U.S. to remain competitive against countries like China, which are advancing in cryptocurrency adoption.

However, experts warn that establishing a Bitcoin reserve could expose taxpayers to financial risks, particularly if Bitcoin's value plummets.

Implementing a federal Bitcoin reserve would likely require congressional approval, which analysts believe may be difficult to secure due to a lack of widespread support.

Trump's proposal for a Bitcoin stockpile was first introduced at a July 2024 conference, where he suggested using seized cryptocurrencies to build this reserve.

Currently, the U.S. holds approximately 198,000 bitcoins valued at around $21 billion, and Trump's strategy could help maintain elevated prices by limiting supply.

Critics point out that unlike oil, Bitcoin is not essential for economic operations, and its benefits to the economy remain uncertain.