- Robert F. Kennedy Plans to Have the FED Match His Gold Reserves With Bitcoin Reserves If Elected
- $600 billion in liquidity potentially flowing into Bitcoin could have a major impact
Bitcoin reserves are once again in the spotlight as political temperatures rise in the US. This time, another US presidential candidate, Robert F. Kennedy, has come forward and expressed his interest in BTC being a reserve asset.
Kennedy, a presidential candidate on an independent ticket, recently revealed that he is pro-Bitcoin. Like his rival Trump, he agrees with the idea of having Bitcoin reserves on the Federal Reserve’s balance sheet. In fact, Kennedy has an ambitious idea that, if implemented, would be a pretty interesting development for the crypto market.
Kennedy reportedly stated that if elected, he will encourage the Federal Reserve to buy Bitcoin. He revealed that one of his goals during his term would be to ensure that the US builds up enough Bitcoin to match its gold reserves.
“I would like the federal government to buy Bitcoin and eventually have an equivalent amount of #Bitcoin as we have gold during my term.”
$622 Billion of Inflows into Bitcoin Reserves?
The latest update on US gold reserves suggests the country has about that 8,133.46 tons of gold. A kilogram of gold was priced at $76,708.36 at press time. Simply put, the total value of gold the US owns is approximately $622 billion.
Bitcoin had a market cap of $1.32 trillion at the time of writing, and an additional $622 billion would push that figure north of $1.64 trillion. That would give Bitcoin a price tag of over $82,000 and a fully diluted price of around $78,000. This would be the case assuming the only liquidity flowing into Bitcoin at that time would come from the government.
In reality, demand for Bitcoin from the US government would likely drive global demand as well. Therefore, more liquidity could potentially flow into the cryptocurrency.
If the United States matched its Bitcoin reserves with gold reserves, BTC would only represent about 2.16% of current US GDP.
What are the chances?
The likelihood of Bitcoin becoming a US Federal Reserve asset is now greater than ever before. Driven largely by political aspirations, Trump has also shown interest in taking that path.
While this is all within the realm of possibility, the chances of favorable policies and outcomes for Bitcoin in the coming years are promising.
Politics is also about promises that are often not kept. Therefore, there is no guarantee that the FED Bitcoin reserves will ever become a reality.