#CreatorPad

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 depreciation.

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

Bitcoin is a highly volatile asset. This means that governments managing trillions won't risk something that could drop 30% in a regular week. We can't equate a stable currency like the dollar or gold with something whose price plays a roulette game every two days.

The talk about Bitcoin being a store of value is not accurate. It only worked during times when the market was going up, but in crises, we found it falling with everything else, without providing any protection from inflation or benefiting from central bank operations.

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