2024

Bitcoin

Zero

The Alabama state auditor general, Andrew Sorrell, called on Alabama to lead other states in establishing strategic Bitcoin reserves. He noted that the price of Bitcoin had gained over 50% since the U.S. elections, and Trump’s enthusiasm for crypto signaled strong federal support. 
Sorrell also <a href="https://1819news.com/news/item/state-auditor-sorrell-calls-for-alabama-strategic-bitcoin-reserve-the-debate-over-whether-crypto-will-succeed-has-ended" rel="nofollow noopener" target="_blank">pointed out</a> that Trump’s meeting with top crypto executives during his campaign made his promise to create a ‘national strategic Bitcoin reserve’ a more tangible reality by July 2025. U.S. Cynthia Lummis already submitted the Bitcoin Act, which requires the federal government to stockpile Bitcoin. 
<h3 id="span-style-font-weight-400-sorrell-pushes-for-alabama-state-strategic-bitcoin-reserve-span">Sorrell pushes for Alabama state strategic Bitcoin reserve&nbsp;</h3> 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 Andrew Sorrell, the auditor general of the state of <a href="https://twitter.com/hashtag/Alabama?src=hash&amp;ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">#Alabama</a>, proposed the establishment of a strategic <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">#Bitcoin</a> reserve. He said that the value of Bitcoin is not affected by the trend of the US dollar, it will strengthen the US balance sheet, and can be used as collateral for… <a href="https://t.co/swA2vSWMZT" rel="nofollow" target="_blank">pic.twitter.com/swA2vSWMZT</a> 
 — MartyParty (@martypartymusic) <a href="https://twitter.com/martypartymusic/status/1866867024233685491?ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">December 11, 2024</a>
</blockquote> 
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
Sorrell asked the state of Alabama to consider putting up a strategic Bitcoin reserve, emphasizing that it could help address debt while strengthening the U.S. dollar and protecting against inflation. His call came as other states considered strategic crypto reserves to promote individual states’ BTC holdings outside the federal government. 
Pennsylvania and Florida are currently debating models for holding Bitcoin reserves. He believes the increase in states’ accumulation of Bitcoin would ultimately attract state businesses and investments.&nbsp; 
Sorrell also believed in diversifying a well-balanced portfolio that included different types of asset groups. He noted that most states had zero exposure to crypto, a $3 trillion asset class. According to Sorrell, crypto was the most rapidly growing asset class, averaging 55% annually for the last 15 years, and it has the greatest potential for price increase.&nbsp; 
<blockquote>
 “The debate over whether crypto will succeed has ended. Now, the fight for which states will benefit from it has begun. The states that are first to adopt a tax and regulatory framework that are friendly to crypto will attract business and investment.” 
 –<a href="https://1819news.com/news/item/state-auditor-sorrell-calls-for-alabama-strategic-bitcoin-reserve-the-debate-over-whether-crypto-will-succeed-has-ended" rel="nofollow noopener" target="_blank">Andrew Sorrell</a>&nbsp;
</blockquote> 
According to the state auditor, bonds and treasuries investments had their place, but earning a yield of 4% with 2.7% inflation, barely broke even. He added that Alabama would benefit by diversifying investments away from dollar-based assets. Sorrell noted that Bitcoin’s value was not affected by what happened to the U.S. dollar. He argued that BTC holders could even benefit from the demise of the dollar. It would strengthen individual states’ balance sheets and could be used as collateral for debt issuances in the future. 
<h3 id="span-style-font-weight-400-the-authorization-of-btc-and-eth-etfs-simplifies-crypto-acquisition-span">The authorization of BTC and ETH ETFs simplifies crypto acquisition&nbsp;</h3> 
Sorrell claimed that the details about states holding Bitcoin reserves were still being worked on since it was a relatively new idea. He, however, mentioned that states could now buy into crypto as easily as purchasing stocks because the U.S. SEC had authorized BTC and ETH ETFs. Sorrell suggested that Alabama’s BTC reserve could be modeled after the federal ASBR (American Strategic Bitcoin Reserve) promised by Trump. 
The state auditor general continued to say that Alabama should use a dollar-cost-averaging approach over two years. He advised that buying during a bull market was not the best timing, but monthly purchases over a period of two years were a better strategy that averaged out the state’s entry price. 
Notably, Sorrell advocated for a gradual approach to crypto investment, although he was all-in on the Bitcoin reserve idea (whether state or federal). He explained that ownership of rapidly growing asset classes came with the increased risk of volatility. For this reason, Sorrell asked crypto investors to ignore short-term market trends and focus on long-term returns instead. 
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Andrew Sorrell, Alabama’s auditor general, says yes to state strategic Bitcoin reserve

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