Inflation has become a key issue in the global economy in recent years. And while the US Federal Reserve and other central banks have made some progress in tackling it, it may take longer to bring rates down to target levels. With that in mind, more and more policymakers are considering state-level ties to Bitcoin. Oklahoma is now among them.
Where Bitcoins are used and accepted
Senator Dusty Devers of the Republican Party has introduced a bill called The Bitcoin Freedom Act (SB325) . Its goal is to allow employees of various companies, along with suppliers of goods and services, to conduct transactions in Bitcoin .
As the senator noted, cryptocurrency could become an alternative to the “inflation-battered” US dollar, which is going through hard times after the coronavirus pandemic in 2020. At the same time, residents of the state will have a choice of instruments for conducting trading operations.
Bitcoin vs. Dollar Fight
Here’s a retort on this subject from Decrypt .
At a time when inflation is eroding the purchasing power of hard-working Oklahomans, Bitcoin offers a unique opportunity to protect the value you’ve earned and secure your investment.
It is worth noting that Bitcoin is not immune to falls, and they can be large-scale. If at the peak of the previous bull run in November 2021, BTC reached $69,000, then a year later its local minimum was $15,476.
And although after this the cryptocurrency still grew to a recent maximum of over 108 thousand, not all investors are able to survive such price swings. And if a person does not have a financial safety net, a bearish trend can make him disappointed in crypto and fix a loss.
Divers isn’t deterred, however. If his bill passes, Bitcoin could be used in state government agencies, local businesses, and simply for personal transactions, as long as the rules are followed.
The official himself is confident that the popularization of Bitcoin will promote innovation, increase financial transparency and strengthen economic growth. In addition, he mentioned the decentralized nature of the cryptocurrency along with its limited maximum supply. This, according to Dusty, will protect ordinary people from the “reckless spending and money printing” in Washington.
It’s a small but theoretically revolutionary change that could offset the damage caused by inflation and make Oklahoma a national leader in embracing the future of financial technology.
Divers attributed Bitcoin’s current rise to the cryptocurrency’s ability to serve as a “promising alternative for wealth preservation,” which is especially relevant in the current political climate.
The Power of Bitcoin and Other Cryptocurrencies
He continues.
It’s not just that President Trump has been actively promoting himself as a Bitcoin supporter and speaking at major crypto-themed events. BTC has already become an important part of our economy and has proven to be a component of the financial future.
Bitcoin Strategic Reserve in the United States
One of Donald Trump’s key campaign promises was the prospect of creating a national Bitcoin reserve. For example, Senator Cynthia Lummis’ bill would see the US government purchase one million BTC over five years.
Cryptocurrency must be stored without movement for twenty years. The only exception here would be the sale of coins to pay off the country’s national debt.
There is a possibility that the basis for creating a Bitcoin reserve in the country will be legislation in different states of the country. As we reported earlier, projects for buying BTC were presented in Texas, Pennsylvania and Ohio. Moreover, their authors openly stated that in this way they want to protect local residents from further depreciation of the dollar.
The prospect of US Bitcoin accumulation is prompting other investors to act ahead of the curve, buying crypto now. As Cointelegraph notes , since the market crash in December, the largest investors have accumulated 34,000 BTC. At today’s rate, that amount is valued at $3.15 billion.
Changes in the balance of the largest Bitcoin holders BTC
Here is a remark from Blocktrends head of research, Kaoue Oliveira, regarding the situation.
More than 34,000 BTC worth around 3.2 billion were accumulated by institutional investors yesterday, creating buying pressure and fueling Bitcoin’s current recovery.
Bitcoin BTC Hourly Chart
Oliveira notes that crypto buying resumed after major investors sold 79,000 bitcoins during the week of December 21. The dumping occurred shortly after BTC set a current high above 108,000 in the middle of the month.
The expert notes that “major players took advantage of the current consolidation.”
The positive trend is confirmed by the situation with the movement of coins on centralized crypto exchanges. According to analysts at IntoTheBlock, trading platforms continue to record an outflow of bitcoins.
Bitcoin deposits and withdrawals from cryptocurrency exchanges
This means that players continue to accumulate digital assets. This is usually done for long-term storage of coins.
The presented bill allows us to state that Bitcoin and other cryptocurrencies are not just an object of hype in the current market bull run. Now the coins are turning into a tool for storing value, and an internationally recognized one at that. Taking this into account, the prospect of creating national reserves of different countries in BTC seems quite likely.
