#ArizonaBTCReserve

A Bitcoin reserve is a strategic accumulation of Bitcoin by an entity to serve as a store of value, hedge against economic uncertainty, and diversify assets. This concept is gaining traction globally, with potential benefits including¹:

- *Hedge Against Inflation*: Bitcoin's limited supply of 21 million coins makes it a deflationary asset, protecting against fiat currency depreciation.

- *Portfolio Diversification*: Adding Bitcoin to a reserve adds a non-correlated asset, reducing portfolio risk.

- *Economic Sovereignty*: Holding Bitcoin reserves reduces reliance on traditional financial systems, providing independence.

Examples of Bitcoin reserves include²:

- *El Salvador*: Adopted Bitcoin as legal tender and accumulated BTC in its national reserves.

- *MicroStrategy*: Converted part of its treasury into Bitcoin as a hedge against inflation.

- *Potential US Reserve*: Donald Trump's administration has proposed creating a strategic Bitcoin reserve, which could significantly impact the crypto economy.