MicroStrategy Co-Founder Michael Saylor Proposes the U.S. Diversify Its Monetary Reserves by Buying Bitcoin

The idea, originally presented by Robert F. Kennedy Jr., gained traction when Saylor shared it on social media, stirring a mix of support and skepticism from various financial commentators.

MicroStrategy Co-Founder Michael Saylor has been advocating a controversial proposition that the U.S. should diversify its monetary reserves by buying an equal amount of Bitcoin to how much gold it already owns.

The idea, originally presented by Robert F. Kennedy Jr., gained traction when Saylor shared it on social media, stirring a mix of support and skepticism from various financial commentators.

The proposal comes as global financial systems reconsider reserve assets and digital currencies gain significant traction. Saylor is suggesting that Bitcoin has the potential to be a valuable reserve asset—somewhere up there with gold—that could help cushion some of the turbulence in America’s monetary base.

Such a significant endorsement of Bitcoin by a government could signal a monumental shift in policy perception towards cryptocurrencies, influencing their market dynamics and broader economic integration.

On the other hand, Bitcoin skeptic and noted gold advocate Peter Schiff had some choice words about Saylor’s suggestion. Schiff argues that Saylor’s plan is nothing more than an attempt to get the U.S. to bail out Bitcoin.

He goes on to say that this play furthers a broader effort to stabilize the price of BTC by having one single major buyer involved: the United States government. Schiff says it would end up just making the American taxpayer, who he believes are going to be left holding all the risk in what amounts to a Bitcoin pyramid scheme.

According to Schiff, this is similar to the classic Ponzi schemes in which older investors’ profits are provided by new entrants because as opposed to other tangible assets that possess an inherent productive use or yield — e.g. real estate (rents) and gold coins (jewelry), Bitcoin has no intrinsic value nor physical utility at all.

Schiff goes on to criticize the viability of Bitcoin’s valuation model, claiming it is based largely on market sentiment and speculative demand as opposed to actual economic utility.

Michael Saylor, while a prominent proponent of Bitcoin, has not publicly advocated for a government bailout but suggests that adopting Bitcoin as a reserve asset could offer long-term benefits similar to or exceeding those of gold.