“Bitcoin as the National Reserve of the U.S.? The Plan That Could Change the Game… or Blow It Up”
The proposal for a Bitcoin reserve fund in the U.S., driven by figures like Senator Cynthia Lummis and supported by Donald Trump during his campaign, is a fascinating and polarizing topic. On one hand, it makes strategic sense. Bitcoin, with its limited supply of 21 million coins, could act as a kind of “digital gold,” offering a hedge against inflation and the devaluation of the dollar, which has been a growing concern with national debt skyrocketing (surpassing $35 trillion in 2024). If the U.S. were to accumulate, say, 1 million BTC as has been suggested, it could diversify its reserves beyond gold and oil, positioning itself as a leader in a financial world evolving towards digital. Moreover, with the price of Bitcoin reaching all-time highs (above $108,000 in December 2024), there is an argument that it could be a shrewd investment, potentially reducing long-term debt if its value continues to rise.
However, there are significant risks. The volatility of Bitcoin is legendary—just look at how it dropped from $107,000 to $101,300 after a comment from Jerome Powell in 2025. A massive government fund could amplify that instability, affecting not only Bitcoin but global markets, given the economic weight of the U.S. There is also the security issue: cryptocurrency wallets are vulnerable to hacks, and a successful attack on a national reserve would be catastrophic. Furthermore, critics argue that Bitcoin has no intrinsic use like oil or metals, making it more speculative than strategic. If the government starts buying or selling large amounts, it could distort the market, benefiting wealthy early adopters while leaving taxpayers exposed to a downturn.
From a broader perspective, this could trigger a domino effect. If the U.S. does it, other countries might follow, driving up demand and price—Adam Back predicted $1 million per BTC if this becomes widespread. But it could also centralize an asset designed to be decentralized, contradicting the original spirit of Bitcoin. Personally, I think it’s a bold move that could consolidate the financial dominance of the U.S. if it goes well, but the risk of a misstep is enormous. A game-changer or a bust? It depends on how they handle it.
