The cryptocurrency tycoon suggests that the US National Investment Fund should hold Bitcoin

The potential for Bitcoin to become part of the US national investment fund is accelerating significantly, following comments from David Sacks, the new digital currency czar of Trump. Speaking to CNBC on February 4, Sacks outlined his vision for the fund, including digital assets as part of a larger economic strategy aimed at growth and stability. Sacks said: “There is a possibility that the National Investment Fund will decide to include Bitcoin or digital assets in its investment portfolio”. He added that this call is for the upcoming Minister of Commerce Howard Lutnick because he is the CEO of Cantor Fitzgerald, a large company in traditional and digital finance. Sacks added: “The goal that President Trump asked our research team on digital assets is whether it can create a Bitcoin reserve or some kind of digital asset reserve.” Inside Trump’s US National Investment Fund initiative According to reports, on February 3rd, President Donald Trump signed an executive order directing the Secretary of the Treasury and the Secretary of Commerce to develop a plan for a national investment fund within 90 days. According to the White House, this fund will invest $5.7 trillion in national assets into:

• Economic development
• Tax reduction – Enhance financial responsibility The national investment fund is a 'portfolio of investments owned by the state holding stocks, bonds, real estate, and alternative assets. Almost all countries use them to protect national assets and promote long-term economic goals. Nowadays, 23 U.S. states have their own sovereign wealth funds and control about 332 billion dollars among the states. If Bitcoin were to be brought into the federal level, the U.S. could be a leading country among those applying mainstream digital assets. Could Bitcoin become the next strategic reserve asset for the United States? A government-backed Bitcoin reserve has been mentioned and the Trump administration is actually considering it. They will be the second country after El Salvador to start integrating Bitcoin into their national reserve. The benefits discussed and debated when holding Bitcoin as a reserve asset include: Inflation Hedge: With a limited supply of 21 million coins, Bitcoin is considered unaffected by currency inflation. Global Liquidity: As a decentralized, borderless asset, Bitcoin offers high liquidity, enabling governments to quickly mobilize capital. Diversification: Unlike traditional assets, Bitcoin is independent of the US dollar market and bonds, making it a unique diversification tool. However, critics warn that the volatility of Bitcoin makes it too risky for any national reserve. A sudden price drop could result in significant losses if not properly hedged. Minister of Trade Howard Lutnick and the Future of Bitcoin Since Howard Lutnick took over as head of the Department of Commerce, there have been many speculations about whether he supports the inclusion of Bitcoin in the national investment fund or not. Lutnick, CEO of Cantor Fitzgerald, previously supported Bitcoin by comparing it to gold at the Bitcoin 2024 conference. Lutnick said: “Bitcoin is like gold and should be freely traded everywhere in the world”. Cantor Fitzgerald also manages Tether’s reserves, further demonstrating Lutnick’s involvement in the digital asset space. As part of the Trump administration, he may have an advantage in how the US government integrates cryptocurrencies into formal financial structures. Expert opinion: Should Bitcoin be included in the US National Investment Fund? The participation of the United States in the Bitcoin economy has also received many comments from analysts in the industry from all angles. To prove that, when asked, Michael Saylor, Chairman of MicroStrategy, said: “Bitcoin is the most difficult form of currency ever created. It’s only a matter of time before central banks and national investment funds adopt it.” However, economist Peter Schiff, a long-time critic of Bitcoin, believes that its volatility and lack of intrinsic value make it unsuitable to serve as a government reserve: “Bitcoin is not a stable store of value. Governments need assets that do not fluctuate 50% in a few months.” Despite the debate, the increasing presence of Bitcoin in global finance means that governments cannot ignore it. If the United States holds Bitcoin reserves, this could set a precedent for other countries to follow suit. Conclusion This could be the moment Bitcoin is put into the U.S. national investment fund - a complete change in the way digital assets are viewed at the national level. When Trump’s executive order takes effect, the next 90 days will be extremely important in determining whether the U.S. recognizes Bitcoin as a strategic reserve asset or not. While supporters see this as a step towards legitimizing digital assets, skeptics warn of volatility risks. Either way, this will shape Bitcoin’s position in the global financial system. DYOR! #Write2Earn #Write&Earn $BTC {spot}(BTCUSDT)