US Crypto Reserve Strategy: Is Bitcoin (BTC) the Best Choice?

Jakarta, Pintu News—In today’s digital age, the US government has discussed establishing a crypto strategic reserve. Coinbase CEO Brian Armstrong recently gave his views on President Trump’s initiative.

Armstrong suggested that adopting Bitcoin BTC0.59%->Current BTC PriceRp 1.422.859.5740.59%Market Cap-Trading Volume-Circulating Supply- as the only asset in the reserve is the best option, describing Bitcoin as the successor to gold in the modern era.

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Armstrong Suggests Bitcoin-Only Approach

In a discussion with David Sacks, the AI and Crypto Czar at the White House, Armstrong proposed two potential strategies. The first strategy is to consider Bitcoin (BTC) as modern gold, focusing exclusively on this asset.

This approach is considered the simplest and provides a clear story of the transition from gold to Bitcoin as a stable and transparent store of value. Armstrong’s second strategy is to use a market capitalization-weighted index of various cryptos.

For example, if Bitcoin (BTC) market capitalization accounts for 50% of the total crypto market and Ethereum ETH1.09%->Current ETH PriceRp 26.906.2991.09%Market Cap-Trading Volume-Circulating Supply- 20%, then the asset allocation in the reserve will reflect those proportions. This approach will avoid favoritism and can adjust to future market changes.

Also read: Nischal Amazed by Trump’s Crypto Reserve, WazirX Users Give Harsh Warning!

Financial and Crypto Community Reaction

President Trump’s announcement of the establishment of a crypto strategic reserve has sparked a wide range of reactions. Some crypto advocates see this as an important step towards widespread adoption, boosting investment and positioning the US as a global digital asset leader. It is considered a significant step forward in integrating crypto in the mainstream financial structure.

However, not everyone is optimistic. Arthur Hayes, co-founder of BitMEX, criticized the announcement as a purely political act.

Hayes argues that without Congressional approval or gold revaluation, the government will not have sufficient funds for large-scale crypto purchases. This skepticism points to the uncertainty in crypto acceptance at the government policy level.

Also read: Pi Network: New Candidate in US Crypto Reserves?

White House Crypto Conference

Discussions regarding the structure of the reserve have become increasingly intense in preparation for the White House Crypto Conference. The announcement on March 2 of a crypto strategic reserve has pushed the crypto market up by 8%.

All eyes are now on the Trump administration’s next move, which will hopefully provide more clarity on the future of crypto in the US.

The meeting is expected to be an important forum for various stakeholders in the crypto industry to express their views and suggestions. The decisions made in this conference could very well determine the direction of crypto policy in the future.

Conclusion

With various views floating around, the future of crypto strategic reserves in the US is still uncertain. However, one clear thing is that these discussions mark a pivotal point in the evolution of crypto from a fringe phenomenon to an integral part of the global financial system. How the US government will navigate this dynamic remains to be seen.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Crypto News. Coinbase CEO: A Bitcoin-Only Strategic Reserve is the Best Choice for the US. Accessed on March 4, 2025
• Featured Image: Generated by AI