An unprecedented milestone for Bitcoin
Bitcoin has just recorded a symbolic victory: President Donald Trump officially signed a decree establishing the United States Bitcoin Strategic Reserve (BSR). This is the first time a major country has officially recognized Bitcoin as a strategic reserve asset, opening a new era for the role of cryptocurrency in the global economy.
What makes this decision shocking is Bitcoin's journey 'from zero': from a technology discussed in anonymous email groups, to being included by the government of the world's number one economy into the national asset vault, alongside gold at Fort Knox.
Content of the decree: Do not buy more, just 'rename'
According to the content of the decree:
The U.S. will consolidate all the Bitcoin that it has seized in civil and criminal cases – which has been stored for many years – and put it into a separate fund named 'Bitcoin Strategic Reserve'.
This fund is not allowed to be sold on the market, ensuring that the supply is not negatively affected.
Do not use new budgets or taxpayer money to buy more Bitcoin, ensuring a neutral financial policy.
That is: the U.S. is not buying more $BTC , but only "reallocating" the existing Bitcoin, transforming it into a form of national reserve – similar to how the country stores gold.
Partially meet the expectations of the Bitcoin community
The establishment of #BSR is the result of a year of continuous advocacy from the global Bitcoin community, which hopes that countries – especially the U.S. – will regard BTC as 'digital gold' and hoard it in the long term.
However, this decree still does not meet the community's wishes: no plans to buy more, no expansion of reserves, and no conversion of other assets (such as gold) into Bitcoin – at least not at this time.
But realistically, this is the first and extremely strong precedent: if a U.S. President has turned Bitcoin into a national asset, the likelihood of the U.S. government imposing a ban on BTC in the near future is almost zero. The existence of the BSR Fund is the strongest political shield for Bitcoin in the largest market in the world.
Bitcoin vs. Gold: A strategic swap?
For a long time, many analysts have considered Bitcoin an improved version of gold, as it has:
Higher mobility (can be sent anywhere in a few minutes)
Greater divisibility and more flexible use
Lower shipping, storage, and transaction fees
Supply is absolutely limited to 21 million, while gold can still be mined further
With these advantages, some people propose that the U.S. should sell off some of its gold reserves and switch to holding Bitcoin, as in the long term, BTC has the potential to appreciate more than gold. This does not violate the principle of neutral finance since it is an asset swap rather than creating additional costs from the state budget.
Warning: The government should not be a 'cryptocurrency investor'
Although the BSR is a positive signal, the larger lesson is: the government should not get deeply involved in speculating or hoarding assets, including Bitcoin. The state owning a large amount of assets can:
Distort the free market
Concentrate control in the hands of a small group of decision-makers
Create pressure to raise taxes or print money if wanting to expand the portfolio
This directly contradicts the decentralized philosophy of Bitcoin, which emphasizes individual financial autonomy and maximally limits governmental control over monetary issues.
Instead of using taxpayer money to buy more Bitcoin, it is better to let individuals decide for themselves, and the government should only play a role in providing a clear and fair legal framework, rather than 'overstepping' into the role of an investor.
Could this be the first step towards the 'Bitcoinization' of national reserves?
Looking further ahead, this action could be a market reaction test by the #TRUMP administration. If the BSR receives strong support, the possibility is not ruled out:
The U.S. government may start selling some gold in exchange for BTC, in a budget-neutral direction
Other countries (especially U.S. economic rivals) are also considering building their own BTC reserves to avoid dependence on the USD
Bitcoin has officially entered the global geopolitical game, where countries use BTC as a financial balancing tool instead of gold
Connect with the crypto market and Binance users
This event could significantly boost the confidence of individual and institutional investors, leading to new capital flowing into the market. Especially for users on Binance, the U.S. government's formal recognition of BTC as a strategic asset:
Significantly reduce legal risks for holding BTC
Create FOMO (fear of missing out) sentiment that could drive BTC prices up significantly
Promote investment products related to BTC such as ETFs, futures contracts, staking products, etc.
However, users should also be cautious: BTC prices can fluctuate sharply in response to market reactions, especially if there are unexpected moves from the government (buying more, selling, or changing positions).
Conclusion: A new chapter opens, but there are still many things to monitor
President Trump's establishment of the Bitcoin Strategic Reserve is a historic milestone for the cryptocurrency market, especially for BTC. Although not perfect, this is a clear signal that Bitcoin is gradually stepping into the center of the global financial system.
However, users and investors still need to be vigilant: the more large institutions jump into Bitcoin, the more important the role of individuals in holding decentralized assets becomes.
⚠ Risk warning: The cryptocurrency market always poses strong volatility and is not suitable for all investors. This article is not investment advice. Always do thorough research before making financial decisions.