A strategic reserve of Bitcoin is an amount of bitcoins that are stored as part of a financial strategy. Governments, companies, and institutions can have strategic reserves of Bitcoin.

Reasons to have strategic reserves of Bitcoin

• Hedge against inflation

The supply of Bitcoin is fixed, so its purchasing power tends to be maintained over time.

• Diversification

Bitcoin is a different asset that can be added to a financial portfolio.

• Store of value

Bitcoin is considered a good store of value due to its scarcity and durability.

The United States and the strategic reserve of Bitcoin

• President Donald Trump signed an executive order to create a strategic reserve of Bitcoin and an additional reserve of other digital assets.

• The reserve will be capitalized with bitcoins confiscated by the federal Treasury as part of criminal or civil proceedings.

• Some skeptics warn that the value of the reserve could disappear in the event of a market collapse.

DW points out that Trump faces legal and political obstacles before he can turn this idea into reality.#LearnAndDicuss

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