The discussion around the potential establishment of a Bitcoin reservoir by former United States (US) President, Donald Trump, continues to captivate crypto analysts. This speculation has been heated further by a cryptocurrency market analyst going by the alias ‘Bio99’ who has proposed an intriguing chain of events which may precede such an announcement. This chain primarily involves Ross Ulbricht, founder of the infamous Silk Road, and the role of US Marshals in handling the Bitcoin assets seized from Silk Road.
Predicting the Declaration of a US Bitcoin Reserve
A post on social media platform X by ‘Bio99’, a crypto market analyst, implies that the recent release of Ross Ulbricht is a crucial precondition to the declaration of a strategic Bitcoin cache. According to him, the Bitcoin acquired by the US government from Silk Road is significant and it wouldn’t be ethical for Trump to form a Bitcoin reserve without first addressing this fact.
Need to understand the context here? In 2011, Ulbricht established Silk Road, a digital marketplace, facilitating the anonymous exchange of illegal goods and services, with Bitcoin as the primary mode of transaction. Silk Road was eventually shut down by US authorities in 2013, leading to the capture of Ulbricht and the confiscation of an estimated 26,000 BTC, equivalent to $3.5 million at the time. The US Department of Justice (DOJ) further seized an extra 69,370 BTC in 2020. Subsequently, the US government sold a portion of the seized Bitcoin after Ulbricht’s conviction on multiple counts, attaining a life sentence with no possibility of parole.
According to Bio99, the initiation of any potential US Bitcoin reserve would necessitate the release of Ulbricht, which in itself cannot occur until the “January 6 defendants” are liberated. Bio99 suggests that to keep Ulbricht incarcerated while using his confiscated Bitcoin for national objectives would invite public ire.
In addition, Bio99 contends that several other measures need to be carried out by Trump before any Bitcoin reserve could be unveiled. These include a freeze on government hiring, curbing illegal immigration, and promoting investment in novel technologies. As per the analyst, once these foundational steps are effected, the formation of a Bitcoin Reserve could become a reality.
Future Direction: Investment in AI and Repeal of the SAB
Bio99 has portrayed Bitcoin as an asset which would benefit the US dollar, the Treasury, and the stock market. They further emphasize that Trump’s recent urging of investments in Artificial Intelligence (AI) and other emerging technologies lays the groundwork for broader backing and declaration of a Bitcoin Reserve in the US.
The implementation of a Bitcoin reserve could further be indicated by the silence of SpaceX and Tesla CEO Elon Musk on Bitcoin, and his public comment on the release of Ulbricht and the January 6 defendants. The final step anticipated in this sequence of events would be the cancellation of the Securities and Banking Act (SAB), thereby enabling banks and other institutions to develop their own reserves.
FAQ’s
Who is Ross Ulbricht?
Ross Ulbricht is the founder of the Silk Road, an online black market that used Bitcoin as its primary transaction currency. He was arrested in 2013, and his Bitcoins were seized by the US Government.
What is the Silk Road?
The Silk Road was an anonymous online marketplace, primarily for illegal goods and services. It used Bitcoin as the main form of currency to maintain anonymity.
What is the relation between Trump and a potential Bitcoin reserve?
Crypto market analyst ‘Bio99’ suggests that Trump could potentially announce a strategic Bitcoin reserve in the US. Before this announcement, Bio99 proposes several preconditions including the release of Ross Ulbricht, founder of Silk Road.
