Bitcoin (BTC) Decision Hotly Debated as the Only US Crypto Reserve

Jakarta, Pintu News – Coinbase CEO, Brian Armstrong, has weighed in on the debate regarding the US national crypto reserve. He suggested that the United States rely solely on Bitcoin BTC0.39%->Current BTC PriceRp 1.393.378.5630.39%Market CapRp 33.034 TriliunTrading VolumeRp 1.590 TriliunCirculating SupplyRp 19.797.675 in its national crypto reserve. This statement is a form of Armstrong’s support for Bitcoin that has been ongoing for years.

Armstrong gave his response after former US President, Donald Trump, proposed that the national crypto reserve should include several altcoins. Some Bitcoin supporters rejected the idea and argued that only Bitcoin is worthy of a reserve. According to them, Bitcoin’s stable performance over time makes it the most reliable asset compared to other cryptocurrencies.

Advantages of Bitcoin Over Other Digital Assets

Armstrong believes that Bitcoin has unique characteristics that make it superior to other cryptos. He cites Bitcoin’s scarcity as its main advantage, which is comparable to gold. However, Bitcoin is considered superior because it is easier to divide and move than gold, making it more suitable as a backup asset.

During a global economic forum in Davos, Armstrong expressed optimism that Bitcoin will surpass gold in market capitalization. He also argued that if the US made Bitcoin a national reserve, other countries, including G20 members, would likely follow suit. However, his views go against Trump’s strategy of wanting to support the entire cryptocurrency industry by including various digital assets in the national reserve.

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Pros and Cons of Bitcoin-Based Crypto Backup Only

The debate over Bitcoin-only crypto reserves continues. Some have suggested that the decision to include altcoins is driven more by political interests and certain financial institutions. Bitcoin supporters argue that Bitcoin is the only crypto worthy of a reserve, especially given analysts’ projections that the price of Bitcoin could reach IDR 4.94 billion (USD 300,000) by 2025.

On the other hand, many criticize the idea of using only Bitcoin as a backup. They argue that it is too risky to rely on just one digital asset, given Bitcoin’s high price volatility. In addition, ruling out altcoins is seen as a missed opportunity to diversify digital asset reserves. One social media user questioned whether it is the right strategy to rely on a single asset, given that in the financial world, diversification is a key strategy to manage risk.

The Impact of the Crypto Reserve Decision on the US

The decision to choose Bitcoin as the sole crypto reserve or include altcoins in it is a big challenge for the US government. Bitcoin proponents emphasize its security, performance, and decentralized nature as the main reasons. Meanwhile, others argue that a more diverse crypto portfolio could help address market volatility and increase the flexibility of national reserves.

With Trump’s support for multi-asset crypto reserves and Armstrong’s call to focus on Bitcoin, the US government is faced with a critical decision. The policies it adopts will have a long-term impact on the country’s economy and financial stability. As cryptocurrency regulation evolves, the crypto reserve debate seems to be just getting started.

Conclusion

The polemic over whether the US should make Bitcoin the sole asset in the national crypto reserve continues. While some support the idea due to Bitcoin’s advantages, others feel that relying on a single asset is too risky. The US government’s final decision on its crypto reserve strategy will determine the future direction of the country’s digital economy policy.

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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. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Cryptopolitan. US Crypto Reserve Should Be Bitcoin-Only. Accessed March 4, 2025.
• Featured Image: CNN