(Kitco News) – The Bitcoin 2024 conference was held this past weekend in Nashville, Tennessee, and while the annual event is known to be one of the largest crypto gatherings of the year, this year’s conference was notable due to several developments that could see the stature of digital assets rise to new heights.
The most notable development came on Saturday when former President and current presidential candidate Donald Trump announced plans to make Bitcoin (BTC) a strategic reserve asset if re-elected and would start by ending the sales of all confiscated BTC currently held by the Department of Justice.
“Many Americans do not realize that the U.S. government is among the world's largest holders of Bitcoin – The Federal Government has almost 210,000 Bitcoin or 1% of the total supply that will ever exist,” Trump said. “But for too long, our government has violated the cardinal rule that every Bitcoiner knows by heart: ‘NEVER SELL YOUR BITCOIN.’”
“And so, as the final part of my plan today, I am announcing that if I am elected, it will be the policy of my administration to KEEP 100% of all the Bitcoin the U.S. government currently holds or acquires in the future,” he added. “This will serve, in effect, as the core of a Strategic National Bitcoin Reserve.”
Other promises made by the presidential hopeful include removing Securities and Exchange Commission Chair Gary Gensler from office “on day 1,” immediately shutting down “Operation ChokePoint 2.0,” appointing a Bitcoin and crypto presidential advisory council, designing transparent regulations within the first 100 days, defending the right to self-custody, creating a framework for the safe and responsible expansion of stablecoins, making the U.S. the world’s number one Bitcoin mining powerhouse, stopping the “war on crypto,” and never allowing a central bank digital currency during his presidency.
But it wasn’t just Trump that helped boost the sentiment in the cryptocurrency ecosystem as several speakers, including presidential candidate Robert F. Kennedy Jr. and Senator Cynthia Lummis, made statements or pro-crypto announcements that set the community abuzz.
Day one
The first day of the Bitcoin 2024 conference was a warm-up for the following days, with speakers like Robert Mitchnick, head of digital assets at BlackRock, providing insights into the successful launch of multiple spot Bitcoin exchange-traded funds (ETFs) and the high level of demand they have seen thus far.
According to Mitchnick, the momentum for these funds is just starting, telling Bloomberg ETF analyst James Seyffart, “It’s early.”
Mitchnick noted the change of heart he observed in Larry Fink, CEO of BlackRock, who was a hard-nosed skeptic of cryptocurrencies when Mitchnick was first hired in 2018.
“Larry deserves a lot of credit for the time that he spent studying the space,” Mitchnick said. “If you are a student of financial history and geopolitics or you are a technologist, Bitcoin tends to come more easily, and Larry is very much both those things.”
He also noted that there are larger forces, including institutional-grade infrastructure and the presence of crypto as an asset class and technology, that played a role in the growth of the ETFs, as well as a high level of demand from investors.
Mitchnick noted that the majority of the initial demand for ETF exposure came from smaller investors and predicted a significant amount of demand is still on the horizon as BlackRock’s wealth advisory and institutional investors are still in the early stages of adoption.
He said that major wealth advisory platforms like Morgan Stanley, UBS, and Merrill Lynch have not yet started to push the Bitcoin ETFs to their clients, but believes that this year may see this trend start to increase. “Typically, that takes multiple years for a new ETF to get to that solicited status,” although “many of the largest platforms are accelerating their efforts to do so,” Mitchnick said.
He estimated that BlackRock Registered Independent Advisers allocating funds to Bitcoin ETFs are currently allocating around 2-3%.
While talking about ETFs for additional cryptocurrencies, which began to pick up following the launch of multiple spot Ether ETFs last Tuesday, Mitchnick said that BlackRock has seen “very little interest” from clients thus far regarding exposure to cryptos aside from BTC and ETH. He said he does not see an expansion of crypto ETFs beyond these two core assets.
Day two
The second day of Bitcoin 2024 included notable speeches in the political and technological arenas. The keynote speech of the day was delivered by Michael Saylor, executive chairman and co-founder of MicroStrategy.
Saylor laid out his ambitious future for Bitcoin, noting that while the current market cap of $1.3 trillion represents a mere 0.1% of global wealth, that will change over the next couple of decades. He predicts its value could surge to $13 million per coin by 2045, an upgrade from his June forecast for a $10 million BTC.
“It could be a $3 million bear case, it could be a $49 million bull case,” Saylor said, urging conference attendees to become “triple maxi” Bitcoin.
“You financed the house for Bitcoin, you buy Bitcoin, you flip all your assets to Bitcoin, and then you move to a cheap tax jurisdiction where you actually can avoid some taxes and invest an extra fifty grand in Bitcoin,” Saylor explained.
“What’s the result?” A net worth of some $214 million, according to Saylor, who recommends a similar strategy for corporations and nation-states.
His projection means Bitcoin’s market cap would see an annual growth rate of 29% and could surge to $280 trillion by 2045, making up 7% of global wealth. Saylor’s high-end projection of $49 million per coin means Bitcoin would capture 22% of global wealth, while his ‘bear case’ prediction of $3 million per coin would result in a 2% global wealth share.
The second day of the conference also saw notable comments and announcements in the political realm as Senator Cynthia Lummis (R-WY), alongside Senator Tim Scott (R-SC), addressed the regulatory landscape and potential future legislative actions.
The pair said that the main problem that Bitcoin has faced in the U.S. is government regulators standing in the way of the industry growing, which Lummis predicted would change if the GOP flipped control over the Senate and Scott was made Senate Banking Chair.
“Let us pray,” Scott said in response, telling the crowd that he believes “you can make the best decisions about your financial future.”
Scott applauded Lummis' efforts to educate the Senate about cryptocurrency and said that if he did take over the committee, the bills she introduced would make it onto the agenda.
"If government controls the money, they control us," Lummis said, eliciting applause from audience. She promised to find the sweet spot between consumer protection and a light touch on the industry and emphasized the Republican Party’s platform revisions to protect digital asset ownership.
The Senators also highlighted the crucial role Bitcoin mining plays in innovating within the energy sector and strengthening the U.S.’s energy infrastructure. Senator Tim Scott briefly discussed some potential future initiatives like using Bitcoin to foster “opportunity zones” aimed at spurring development in underserved areas.
“The ability to bring resources and opportunities and access to the marketplace, to the people who need it most, that’s what Bitcoin is about,” Scott said. “That’s what this is about – giving the average American a chance to make their own decisions at home. No matter where you live, if you’re at the mountaintop or with me in the valleys low, having a chance to democratize our financial footprint is an absolutely essential part of achieving the American Dream. We need a regulatory environment that understands that freedom and liberty are inseparable.”
Day two also saw a speech from presidential candidate Robert Kennedy Jr., who took advantage of speaking the day before Trump and announced that he would designate Bitcoin as a strategic reserve asset of the U.S. should he be elected.
He outlined a plan that includes transferring about 204,000 BTC held by the government to the U.S. Treasury and directing daily purchases of Bitcoin to build a reserve of 4 million coins.
"I will sign an executive order directing the US Treasury to purchase 550 Bitcoin daily until the US has built a reserve of at least 4,000,000 Bitcoins and a position of dominance that no other country will be able to usurp,” Kennedy said.
He also said he would order the Internal Revenue Service (IRS) to treat all transactions between Bitcoin and the U.S. dollar as nonreportable and nontaxable, and would order the tax collector to treat Bitcoin as eligible for exchange into real property under the 1031 Exchange program, which provides incentives for real estate investment.
“Transactional freedom [is] as important as freedom of expression in the 1st Amendment,” Kennedy said, adding that Bitcoin has the power to help restore the U.S. economy to the position it was in before President Richard Nixon took the US dollar off the gold standard to fund the Vietnam war.
“Fiat currency was invented to fund war,” Kennedy said. “If the world was on a BTC standard, there would be no more war because you can’t print Bitcoin.”
As part of his efforts to change Washington’s approach to crypto, Kennedy said he would hire Space Force Major Jason Lowery – who wrote a thesis at the Massachusetts Institute of Technology that described Bitcoin as a “cyber-defense system” and “soft power projection” that would the online identities in cyberspace – as a national security adviser.
Kennedy also said he would back U.S. Treasury bills, notes, and bonds with hard assets, including precious metals and Bitcoin, to strengthen the dollar, rein in inflation, and usher in a new era of financial stability.
“I would be willing to add Bitcoin to the balance sheet. I’m going to do that. I’m gonna actually do a basket of hard currencies of maybe platinum and gold and other hard currencies and begin issuing at least the class of Treasury bills that are anchored to hard currency,” he said. “Let’s say the first year by 1% and then maybe the next year by 2% to watch how that goes because that will inject discipline into the product and ultimately get up to 100%.”
Day two also saw exiled NSA whistleblower Edward Snowden speak via a conference call from Russia, where he warned about the sudden interest from politicians.
"I notice we have a lot more political representation here,” Snowden said before questioning their true motives. “They fight us, then they try to get us to love them.”
Snowden encouraged attendees to strive to remain independent in their judgment, emphasizing the importance of discerning self-interest in political promises.
"Cast a vote, but don’t join a cult,” he warned. “They are not our tribe. They are not your personality. They have their own interests. Don’t give yourselves to them, even if you have to vote for them.”
Snowden said that even with a new administration, the underlying power structures in the U.S. are unlikely to change. “As far as the average worker is concerned, whether we're talking about this election or any other in the last 20 years, a given election tends to result in what feels like a different uniform on the same cop,” Snowden said. “And that's a problem.”
"Look at the economy. There’s an increasing concentration of resources into fewer and fewer hands," he added. "You play by their rules, or you don’t play at all, and that should be changing."
Day three
Trump stole the show on day three with his comments about making Bitcoin a strategic reserve asset and what that would do to Bitcoin's value.
“Bitcoin is not just a marvel of technology; it’s a miracle of cooperation and human achievement,” Trump said. “Bitcoin can possibly overtake the market cap of gold. What do you think will happen when people figure that out?”
After listing some of the anti-crypto developments that have taken place under the administration of President Joe Biden, Trump warned that a Democratic victory in the upcoming election would spell disaster for the cryptocurrency industry, accusing them of potentially ruthless and harmful regulatory actions.
He promised to fire SEC Chair Gary Gensler “on day one,” and said he would then establish a “Bitcoin and crypto advisory council.”
“If crypto is going to define the future, it’s going to be mined, minted, and made in America,” Trump said. “If Bitcoin is going to the Moon, I want America to send it there.”
Following Trump’s pro-crypto speech and promise to make Bitcoin a strategic reserve asset, Senator Lummis took the stage to announce that she plans to introduce legislation calling for a "strategic bitcoin reserve” that will reduce the national debt of the United States by buying 1 million Bitcoin over five years.
Lummis said the Bitcoin would be held for at least 20 years. "This is the solution. This is the answer. This is our Louisiana purchase moment,” she said.
In response to the surge in Republican support for Bitcoin and digital assets, 14 Democrats from the U.S. House Representatives and 14 congressional candidates sent a letter to Jamie Harrison, Chair of the Democratic National Committee (DNC), urging the DNC to adopt a pro-crypto posture.
“We, representing a range of Democratic officials, candidates for the House, and members of Congress, write to urge you to take a forward-looking approach to digital assets and blockchain technology,” the letter said. “This area holds immense potential for American innovation, economic growth, and financial inclusion.”
The signatories called on the DNC to “Include pro-digital asset language in the party’s platform; Select a vice-presidential candidate sophisticated in digital asset policy; select a pro-innovation SEC Chair; and Engage with industry experts.”
“From an electoral standpoint, crypto and blockchain technologies have an outsized impact in ensuring victories up and down the ballot. Crypto is at the top of voters’ minds in swing states, and a balanced approach to crypto that spurs innovation while protecting consumers is a net positive for policymakers and candidates,” they said. “Over 20% of voters in key battleground states identified crypto as a major issue in the 2024 election, and it's critical that our party presents a persuasive case to crypto voters while ensuring that consumers benefit from thoughtful and appropriate regulation.”
“The current financial system has left Americans behind,” they added. “Digital assets and blockchain technology are not merely financial instruments but represent a revolutionary shift that can enhance transparency, reduce fraud, and create a more inclusive financial system. We believe this technology is non-partisan, and the Democratic Party should also champion these innovations to help reaffirm the U.S.’s position as the leader in the global digital economy.”
Lawmakers who signed the letter include Rep. Josh Gottheimer (D-NJ), Ro Khanna (D-CA.), Wiley Nickel (D-NC), and Ritchie Torres (D-NY).
