US Military Support Sparks Debate Over Strategic Bitcoin Reserve Amid Long-Term Price Predictions

Senator Cynthia Lummis advocates for a Strategic Bitcoin Reserve supported by the military, emphasizing its potential as a tool in economic competition with China and a safeguard during geopolitically tense times. She introduced legislation proposing the US acquire and hold 1 million BTC, mirroring gold reserve strategies, although the bill remains stagnant in Congress. Meanwhile, President Trump ordered the creation of a Bitcoin reserve using seized assets, potentially including around 200,000 BTC. Lummis projects a significant price increase for Bitcoin over the next decade driven by its fixed supply, institutional adoption, and network effects—though long-term forecasts are uncertain, subject to regulatory, technological, and market shifts. Despite her positive outlook, critics like Jamie Dimon dismiss the plan as wasteful, cautioning against reliance on volatile digital assets for strategic reserves given their unpredictable price swings and the US’s enormous national debt.