The One Million Bitcoin Purchase Plan That Everybody Ignored

Senator Cynthia Lummis’ plan to buy one million Bitcoins has met with remarkable market indifference.
Despite the unprecedented scale of the proposal, Bitcoin’s price has been lackluster. This lack of reaction speaks volumes about investor skepticism.
Senator Lummis’ proposal would make the U.S. one of Bitcoin’s largest holders.
The plan calls for buying 200,000 Bitcoin annually for five years, with a 20-year minimum hold requirement.
This would put the government alongside private entities like Michael Saylor’s Strategy, which already holds nearly 500,000 Bitcoin worth about $42 billion at current prices.
The market’s lackluster reaction is especially instructive. Investors are not only dubious but also flatly reject the plan’s short-term prospects.
“The market has not yet caught up to reality,” as one observer put it, suggesting that present pricing might not accurately reflect the possible effects of such significant government expenditure.
Economists too have been sharply critical. Stephen Cecchetti, an economist and professor at Brandeis International Business School called the idea “absurd.” Their skepticism centers on Bitcoin’s fundamental differences from traditional strategic reserves.
The implementation challenges are substantial. The …Full story available on Benzinga.com

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