In the past two years, we often hear about which country or large company has established a Bitcoin strategic reserve. What exactly is a Bitcoin strategic reserve?
☀️What is a Bitcoin strategic reserve?
It means almost literally that a certain country/company/institution is optimistic about the future development of Bitcoin, thus incorporating Bitcoin into financial investments.
In simple terms... if you think Bitcoin will be profitable in the future, it's best to buy now quickly, using the strategy of buying low (now) and selling high (in the future).
Despite the risks of price volatility and security associated with Bitcoin, its potential as a long-term valuable asset is gradually gaining widespread recognition.
☀️Main Motivation
1. Against Inflation (Value Storage):
Currently, fiat currencies in various countries are almost all issued by governments or central financial authorities at will. Excess issuance can lead to currency devaluation, which can further cause social inflation.
Unlike the fiat currencies of various countries that can be issued in excess, the total supply of Bitcoin is fixed (around 21 million), and the quantity and timing of issuance (mining) are generally predictable. Scarcity combined with predictability increases the likelihood of maintaining purchasing power in the long term.
2. Diversified Investment:
Don't put all your eggs in one basket. As Bitcoin and the virtual currency industry rapidly develop, Bitcoin, as a leader, has become a good investment target, helping to diversify investment risks and reduce reliance on a single investment asset, alongside gold, stocks, foreign exchange, bonds, and futures.
3. Buying and Selling Usage (Enhancing Economic Stability)
For many regions and countries with unstable social conditions, local currency prices often fluctuate significantly. For these regions and countries with unstable local currencies, holding Bitcoin not only ensures that the government holds certain assets but can also be used as a trading tool.
Many people consider it a good value storage method, and Bitcoin is thus referred to as 'digital gold.'
Since Bitcoin is based on a global decentralized network, it is not controlled by any single country/region or bank.
4. Financial Usage - Making Money Ah Ah Ah Ah Ah
The most basic strategy is to be optimistic about the development of Bitcoin and the virtual currency industry, wanting to optimize one's financial situation by buying low and selling high.
The most well-known is MicroStrategy, which has invested billions of dollars in purchasing Bitcoin as a substitute for cash assets, calculating its investment return based on how many Bitcoins are held per share.
☀️Current Situation
United States:
In March 2025, U.S. President Donald Trump signed an executive order for Bitcoin strategic reserves, establishing a digital asset reserve with confiscated Bitcoins, no longer auctioning them out.
El Salvador:
The world's first country to recognize Bitcoin as legal tender, since 2021, the government has begun accumulating Bitcoin as part of national reserves and using it to promote inclusive finance and economic development. Currently holding over 6,100 Bitcoins!
Bitcoin Stock Company:
1. MicroStrategy:
Since 2020, a stable purchase of Bitcoin has begun, currently holding 628,946 Bitcoins and committing to continue buying.
2. Stablecoin USDT issuer Tether:
Currently holding over 100,000 Bitcoins and over 90 tons of gold.
☀️Conclusion
More and more companies are purchasing virtual currency reserves, currently still primarily in Bitcoin. With the U.S. passing Bitcoin strategic reserves, people's confidence in investing in virtual currencies has increased!!!
Online learning and information gathering. Feel free to discuss and provide feedback. Thank you for letting me know if there are any shortcomings or errors!😀
