#BTCReserveStrategy Brian Armstrong's proposal on strategic Bitcoin reserves raises a complex debate. A balanced analysis could be:
Recommended percentage:
- 1-5% of total reserves would be a reasonable range for pioneering countries.
- Countries with high exposure to inflationary currencies (e.g., emerging economies) could consider up to 3-5% as a hedge.
- Stable economies (U.S., EU, Japan) should limit themselves to 1-2% initially.
- Reference example:* El Salvador (the only country with BTC as a reserve) allocated ~0.5% of its reserves in 2021.
Bitcoin could act as "catastrophic" monetary insurance, but only if:
- The exposure is marginal (<5%).
- Rigorous technical safeguards are implemented.
- There is long-term bipartisan consensus.
A pragmatic alternative would be framed in
: Sovereign Funds (not direct reserves) investing in blockchain companies with fiat flows (e.g., Marathon Digital, Coinbase) provide indirect exposure with lower systemic risk.
