#BTCReserveStrategy A Bitcoin Reserve Strategy involves a country or institution holding Bitcoin as a strategic asset to diversify reserves and mitigate economic risks. The proposed US Bitcoin Strategic Reserve aims to:
- *Diversify national assets*: By allocating a portion of the Treasury's reserves to Bitcoin, the US can reduce its dependence on traditional assets.
- *Strengthen the US dollar*: The reserve could help maintain the US dollar's global dominance by hedging against economic uncertainty and monetary instability.
- *Hedge against inflation*: Bitcoin's finite supply makes it an attractive hedge against inflation and economic instability.
The plan proposes acquiring 1 million BTC over 5 years, valued at around $57 billion, and storing them in a geographically distributed multi-sig cold storage facility. This move could encourage other countries to follow suit, potentially triggering a global Bitcoin allocation race ¹.