1️⃣ If Bitcoin holders want the reserve to be sustainable, Trump needs Congress's approval for the purchase. If this is done by executive decision, the next administration may overturn the decision and liquidate the Bitcoins. A law must be passed, not Trump's unilateral policy.
2️⃣ The issuer of the global reserve currency should not spread its attention. The decision could raise significant concerns in the dollar and treasury bond markets. Essentially, the government will signal that it no longer believes in the existing dollar system and needs radical changes. The government should focus on strengthening investors' faith in its ability to meet its debt obligations by pursuing policies aimed at growth and reducing the deficit, rather than changing the structure of the dollar system.
3️⃣ The U.S. is already sufficiently influenced by Bitcoin. American funds and individuals own a large amount of coins and pay taxes. No one insists that the U.S. government acquire shares of Apple or NVIDIA. So why Bitcoin?
4️⃣ There is no 'strategic' value in the reserve. The assets and commodities that the U.S. buys at the state level may be needed in case of extreme necessity, so they should be accumulated in advance. Oil reserves, medical equipment, metals, minerals, foreign currency are needed in case intervention is required. There is no obvious strategic use for Bitcoin (and even less so for Cardano or Ripple). Ordinary Americans do not need a 'reserve' of Bitcoin or any other cryptocurrency to maintain their quality of life. This may change if the entire financial system operates on blockchain and tokens are needed for gas payments, but that is not the case today.
5️⃣ Mixing Bitcoin with ETH, ADA, SOL, and XRP gives them equal state authority and devalues the main cryptocurrency. It looks faceless in a group with other assets. Bitcoin among them is the only asset with a predictable issuance and true decentralization at the protocol level. The crypto reserve only confuses and devalues Bitcoin in the eyes of the public.
6️⃣ Bitcoin does not need the government. It has become one of the most successful investments in history, transforming from nothing in 2009-2010 to trillions of dollars in total value by 2025. This happened without government support and, in many cases, despite open hostility from powerful nation-states. The crypto reserve will turn Bitcoin from an apolitical asset into a government toy, subject to the political cycles of Washington. Bitcoin holders have never been those who tie their wagon to the government, and they shouldn't start doing so now.
7️⃣ Americans will turn against Bitcoin. Only 5-20% of Americans own Bitcoin, even fewer own other crypto assets. Many Bitcoin holders are extremely wealthy due to their investments in this and other coins. When government spending is under scrutiny, using taxpayer dollars to increase the price of Bitcoin and other crypto assets will be politically unpopular. Biden's proposed student loan forgiveness faced significant resistance, despite potentially affecting 43 million borrowers. Bitcoin holders are a smaller group, even less in need of financial support from the government. Such a policy will undoubtedly provoke an unnecessary backlash against the crypto community in broader society.
8️⃣ This is a self-serving interest. It is no secret that Trump, his cabinet, and those around him own various crypto assets. Trump himself has launched or is associated with a number of projects: NFTs built on Ethereum, numerous meme coins on Solana, and World Liberty Financial, which owns a whole arsenal of crypto assets. However, using state resources to directly increase the value of the coins owned by Trump (and his circle) leaves a sour taste.
