What is the Strategic Bitcoin Reserve?


The Strategic Bitcoin Reserve refers to the Bitcoin reserves that governments, companies, and financial institutions hold under their economic strategies. It is similar to how central banks hold gold or foreign currency. Due to Bitcoin's limited supply (21 million coins) and its characteristics of being viewed as digital gold, many institutions see it as a long-term investment.


Benefits of the Strategic Bitcoin Reserve




  2. Hedge Against Inflation

    Bitcoin exists in a limited supply, making it less susceptible to inflation and maintaining a more stable purchasing power.



  4. Asset Diversification

    Holding Bitcoin represents a new anddifferent element from traditional assets in an investment portfolio.which can reduce risk.



  6. Store of Value

    Bitcoin is also referred to as "digital gold" because it is scarce, decentralized, and cannot be damaged, making it suitable for long-term investment.


Donald Trump's Strategic Bitcoin Reserve Order


On March 6, 2025, U.S. President Donald J. Trump signed an executive order establishing the Strategic Bitcoin Reserve and the U.S. Digital Asset Stockpile.



  • This reserve will be filled with Bitcoin seized by the government, which would have been confiscated in various criminal or civil cases.


  • The aim of this project is to hold Bitcoin as a national asset, not to sell it.


  • The U.S. digital asset stockpile will include other altcoins and digital currencies, which will be managed by the U.S. Secretary of the Treasury.


Criticism and Concerns


This project has proven controversial for some experts and politicians:



  2. Price Volatility – The price of Bitcoin is highly volatile, which could harm government financial matters.


  4. Use of Seized Bitcoin – Many people argue that the government should return seized Bitcoin to victims or auction it off, rather than keeping it in the national treasury.


  6. Effects on the Dollar – Some critics believe that the government's storage of Bitcoin could undermine the traditional financial system and the credibility of the U.S. dollar.


  8. Lack of Transparency – No clear rules or regulations have been outlined regarding the management of the reserve and its future, raising concerns about transparency and accountability.


Examples of Bitcoin Reserves in the Real World




  2. MicroStrategy



    • An American company that has been purchasing Bitcoin continuously since 2020 and currently holds 499,096 BTC (approximately $42.9 billion).



  4. El Salvador's National Bitcoin Reserve



    • El Salvador made Bitcoin legal tender in 2021 and currently holds a reserve worth 6,105 BTC (approximately $525 million).



  6. Tether



    • The company Tether, which creates the popular stablecoin USDT, has also included Bitcoin in its reserves, holding 83,759 BTC (approximately $7.2 billion).


Future Expectations


The use of Bitcoin as a reserve is increasing worldwide. Several countries and central banks are researching how they can incorporate Bitcoin into their economies. Similarly, large companies are also adopting Bitcoin as a long-term investment.


Conclusion


The Strategic Bitcoin Reserve is emerging as an alternative to the traditional financial system. It could be a potential strategy for inflation protection, financial diversification, and national economic stability. However, due to price volatility, government transparency, and potential impacts on the traditional financial system, it is also a subject of debate.


It will be interesting to see whether more governments and companies incorporate Bitcoin into their financial reserves.