#BTCReserveStrategy

Brian Armstrong, the CEO of Coinbase, urged governments to start including Bitcoin in their official reserves, considering that digital currencies are "the next chapter of capitalism." He also suggested allocating 1–1.5% as a starting point from foreign reserves, considering this a hedge against inflation and currency devaluation.

This sounds good on paper, but the reality is very different.

Bitcoin is a highly volatile asset. This means that governments managing trillions will not risk something that could collapse by 30% in an ordinary week. We cannot equate a stable currency like the dollar or gold with something whose price plays a roulette game every two days.

Talking about Bitcoin as a store of value is inaccurate. It only worked when the market was rising, but during crises, we found it falling with everything else; it offered no protection against inflation and showed no central bank activity.

Also, if a breach or technical issue occurs, who guarantees that this is not a central bank whose accounts you can audit? And if the government stored Bitcoin in cold wallets and the password was lost, the money would vanish into thin air.