Alabama State Auditor pitches Bitcoin reserve
Andrew Sorrell, Alabama State Auditor General, joined a growing cast of figures calling for strategic Bitcoin reserves in the U.S.
The Alabama State Auditor suggested creating a Bitcoin (BTC) reserve as federal and state legislators flocked toward the idea after Donald Trump’s Nov. 6 victory. “The debate over whether crypto will succeed has ended,” Sorrell said, speaking to 1819 News about the reasons for his supporting BTC.
Sorrell asserted that establishing a strategic BTC reserve would help Alabama, and other U.S. states, diversify government portfolios, hedge against fiat-related risks and inflation, and position jurisdictions as crypto-friendly business areas.
The Alabama Auditor General advised caution, proposing that the state follow a federal bill presented by Wyoming Senator Cynthia Lummis and adopt a dollar-cost average plan. DCA-ing involves buying predetermined amounts of an asset over a given period. Sorrell suggested that Alabama accumulates its reserve over two years.
The framework the state should follow would be to dollar-cost-average our way in over 2 years. Bitcoin just crossed over $100,000 recently, so buying into a bull market may not be the best timing. A better strategy is monthly purchases over a 2-year period that average out your entry price.
Andrew Sorrell, Alabama State Auditor General
Sorrell’s proposal mirrored increasing State-backed demand for a BTC reserve, an idea catapulted by promises from President-elect Donald Trump and his incoming administration.
Trump has tapped industry leaders like Coinbase CEO Brian Armstrong for advice, picked Silicon Valley veteran David Sacks as the first crypto czar, and nominated pro-crypto former federal regulator Paul Atkins as chair of the Securities and Exchange Commission.
Senator Lummis moved to improve on Trump’s pledge to retain America’s 207,000 BTC stockpile, about 1% of Bitcoin’s supply. The Senator’s BITCOIN bill would accumulate 4% of BTC’s 21 million fixed supply over five years, if approved by the Senate.
