Pennsylvania’s Bitcoin Investment Bill, the “Bitcoin Act of 2024” is introduced, Bitcoin Adoption by Solidion Technology, Historical Analysis of U.S. Home Prices in Bitcoin.... are some of the highlights related to cryptocurrency and financial markets currently.
Pennsylvania’s Bitcoin Investment Bill
A new bill has been introduced in Pennsylvania to allow the state to invest a portion of its funds in Bitcoin. Representative Mike Cabell proposed the legislation, suggesting that Bitcoin could serve as a hedge against inflation and help stabilize the economy during uncertain times.
What does the Bill Propose?
If passed, the law would let Pennsylvania’s Treasurer invest up to 10% of the state’s funds—including the General Fund, Rainy Day Fund, and State Investment Fund—in Bitcoin. With over $9.7 billion in the General Fund and $7 billion in the Rainy Day Fund, this could represent a multibillion-dollar investment in Bitcoin.
Representative Mike Cabell said, “using Bitcoin as a hedge could offer stability in uncertain economic times.”
Cabell pointed to firms like BlackRock and Fidelity, which have turned to Bitcoin as a way to protect their portfolios from economic volatility.
Pennsylvania is already making moves in the crypto space. In October, the state passed a separate bill, HB 2481, to protect self-custody and crypto payments.
Senator Cynthia Lummis' bill "Bitcoin Act of 2024"
The S.4912 bill, also known as the Bitcoin Act of 2024, sponsored by The U.S. Senator Cynthia Lummis, has officially been introduced to the US Congress. This groundbreaking legislation would allow the US government to establish a strategic Bitcoin reserve, marking a historic step in the adoption of Bitcoin at a national level.
Although the bill is now on the table, the vote might not happen until January 2024. Because we have to wait for President-elect Donald Trump to take office, as well as for the new Congress to begin its session.
Just a few years ago, the idea of governments storing Bitcoin seemed like a wild fantasy. But now, it’s becoming a tangible reality. The fact that this bill exists and is listed on the official US Congress website shows how far Bitcoin has come—from an underground digital currency to a serious contender as a strategic financial asset.
Lummis proposes selling Fed's gold to buy 1 Bitcoin
Recently, she has proposed a bold plan to help the United States build a strategic Bitcoin reserve. Her idea is to Sell some of the Fed’s gold to buy Bitcoin.
Lummis plans to introduce a bill in the next Congress that would authorize the US to buy 1 million Bitcoin, nearly 5% of all Bitcoin in circulation. At current price, this would cost about $90 billion, though the amount could rise if investors start buying ahead of the government.
In an interview with Bloomberg, Lummis explained:
“We already have the financial assets in the form of gold certificates to convert to Bitcoin. So the effect on the US balance sheet is pretty neutral.”
Her plan goes beyond President-elect Trump’s current vision for a strategic Bitcoin reserve. Trump’s initial idea was to hold onto 200,000 Bitcoin already seized by the US government through asset forfeitures. Under Lummis’ bill, the US would keep its Bitcoin holdings for a minimum of 20 years, betting on its appreciation to help reduce the national debt.
The proposal has sparked predictions about Bitcoin’s potential price surge. Michael Novogratz, head of crypto investment firm Galaxy Digital, believes the likelihood of such a reserve being created is low. However, he told Bloomberg that:
“If the US does create such a stockpile, it would push the price of Bitcoin to $500,000 since other nations would feel compelled to create similar stockpiles.”
Bitcoin Adoption by Solidion Technology
Solidion Technology, a US-based battery tech firm, has announced its decision to include Bitcoin in its corporate treasury strategy. The company plans to use excess cash reserves to accumulate Bitcoin, viewing it as a long-term store of value and a hedge against inflation.
Solidion plans to allocate 60% of its excess cash reserves to purchasing Bitcoin. Additionally, the company will convert interest earnings from investments like money market accounts into Bitcoin.
Solidion also committed to using future capital raises to acquire more Bitcoin for long-term holding.
The company’s Chief Financial Officer, Vlad Prantsevich, shared Solidion’s confidence in Bitcoin:
"We believe strongly in Bitcoin’s transformative potential for the financial system, and we see our allocation as both a secure store of value and compelling investment.”
Following Solidion Technology's announcement of adopting Bitcoin as a corporate treasury asset, the company's stock price surged by 28%.
Historical Analysis of U.S. Home Prices in Bitcoin
Over the years, the purchasing power of Bitcoin has increased significantly:
2012: ~50,616 BTC per median-priced home.
2016: ~697 BTC per home.
2020: ~46 BTC per home.
2024: ~5 BTC per home.
Can you predict the home price in Bitcoin in the next 4 years?
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