$CFX A Bitcoin reserve strategy involves holding BTC as a long-term asset to hedge against inflation, currency devaluation, and economic uncertainty. Governments or institutions adopting this approach allocate a portion of their reserves to Bitcoin, diversifying away from traditional assets like fiat currencies, gold, or bonds. The strategy leverages Bitcoin’s fixed supply and decentralized nature to preserve wealth. Key considerations include secure storage (cold wallets, multi-signature setups), regulatory compliance, and volatility management. Regular audits and transparent reporting build trust. Critics argue it’s risky due to price fluctuations, but proponents see it as a transformative store of value for future financial stability.