Sell gold and buy 1 million Bitcoin: US Senate drafts risky bill

Collage: US flag and Bitcoin. Source: Google

Newly elected US President Donald Trump has repeatedly stated that under his leadership, the country's government will make large investments in bitcoin and other cryptocurrencies and it seems that his plan is gradually starting to materialise.

Here's What We Know

The Bloomberg publication reports that the US Senate is drafting a bill that would oblige the Federal Reserve to sell some gold and finance the purchase of 1 million bitcoins for the government reserve.

If approved, the move would give the US about 5 per cent of the world's total cryptocurrency at its disposal.

Mark Konnors, chief investment strategist at Risk Dimension, an analytical agency, believes that other countries may follow the U.S. in buying cryptocurrency.

Crypto-investor Michael Terpin reminded that the creators of cryptocurrency can not control its value directly, but it should be noted that if a large number of bitcoins will be in the hands of a number of governments - it could affect the volatility of cryptocurrency and further destabilise its value.

Source: Bloomberg