Recent statements by David Bailey have sparked rumors that Middle Eastern petrostates such as Saudi Arabia, the United Arab Emirates, and Qatar may be buying Bitcoin on a sovereign level.
Bailey, the organizer of the Bitcoin 2024 conference and CEO of Bitcoin Magazine, has drawn attention to the possibility that other countries are overtaking the United States in purchasing Bitcoin, the world's most valuable cryptocurrency.
In fact, Bailey stated that the world's leading power is already being outpaced in its Bitcoin strategy, which is why he has urged the United States to act quickly in the creation of the Strategic National Reserve of this cryptocurrency, which was promised by its president-elect Donald Trump during his presidential campaign this 2024.
Speculation about Bitcoin purchases by Middle Eastern petrostates has gained traction as the Bitcoin MENA conference approaches, which is set to take place in Abu Dhabi, United Arab Emirates, on December 9 and 10. This conference, organized by BTC Inc., could be the perfect stage for Gulf countries to reveal their cryptocurrency investment strategies.
In the global context: Who is buying Bitcoin?
Bailey has suggested that capital from oil revenues in Middle Eastern countries could be flowing into Bitcoin before the United States, emphasizing the urgent need for the world's leading power to establish a Strategic Bitcoin Reserve as soon as possible.
In the global context, growing instability in traditional markets has led many investors to seek safe havens in assets such as Bitcoin, often called "digital gold". Due to its limited supply and potential for growth and appreciation, Bitcoin is now seen as a viable alternative to diversify companies’ investment portfolios and stores of value. But the market-leading cryptocurrency, which recently set its all-time high price at $93.434, is not only being considered as a store of value by retail and institutional investors, but also by governments.
To date, countries such as El Salvador, Bhutan, Ukraine, China, the United Kingdom and even the United States possess a significant amount of bitcoins.
Source: Bitcoin Treasuries
However, according to Bailey's statements, Middle Eastern petrostates could soon reveal holdings in this cryptocurrency. Bitcoin adoption could be seen as a strategy to mitigate the risks associated with oil dependency.
Middle East interest in blockchain and Web3
In addition, the growing interest in decentralized technologies and blockchain is leading these countries to explore new forms of investment that are not subject to Western control.
Saudi Arabia, for example, is looking towards Web3 to ensure its technological growth. The United Arab Emirates has implemented a number of favorable regulations for the development of cryptocurrency companies and DAOs in the region and Qatar has been promoting itself as an attractive innovation hub for the crypto sector. All of this could lead to the Middle East leading the way in digital asset adoption and influencing global monetary policies.
The importance of the Bitcoin Strategic Reserve
Given the possibility that Middle Eastern petrostates are buying Bitcoin, Bailey stressed that it is vital that the United States acts quickly to establish its own National Strategic Bitcoin Reserve and don't be left behind in this race towards mass adoption of cryptocurrencies.
The Bitcoin Strategic Reserve is a proposal that seeks to create a Bitcoin reserve to protect the United States against potential economic and financial crises. The idea is for the federal government to accumulate Bitcoin as part of its reserves, thereby diversifying its portfolio and ensuring a competitive position in the global market. Likewise, the creation of this reserve could help the United States adapt to a changing financial environment and ensure its leadership in the crypto space.
However, in addition to the United States, several other governments have already shown interest in owning Bitcoin, suggesting that the cryptocurrency is gaining recognition as a form of store of value and a diversification tool and that other countries could be at the forefront of its adoption.
Prominent figures within the cryptocurrency ecosystem, such as Michael Saylor, CEO of MicroStrategy, have advocated for the creation of strategic reserves at both the corporate and government levels.
Saylor has argued that acquiring Bitcoin could be “the best deal of the 14.000st century,” highlighting the critical importance of strategically positioning oneself in an increasingly competitive market. His company, whose primary focus is enterprise software development, recorded an unrealized gain of over $2020 billion from the recent surge in Bitcoin price. MicroStrategy began investing in Bitcoin in 279.420, acquiring 4 BTC to date and doubling its investment over the past XNUMX years.
