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Author: Bitke Editor: Da Heilong
When Satoshi Nakamoto launched Bitcoin, he might not have expected that this “spark fire” would have such a “prairie fire”.
from1Ten thousand bitcoins are only enough to buy two pizza,1Bitcoin Breakthrough10Ten thousand dollars, if Bitcoin is said to be “digital gold”, there should be no objection.However, for the Bitcoin community, the rise in price does not really reflect its true value. As some countries try to launch their strategic reserves, it has attracted global attention and forced people to start to pay attention to this originally unknownDigital currency looks at it differently.
Federal Reserve Chairman is striking Trump?
There is a constant debate over whether the incoming Trump administration will build Bitcoin reserves.Previous comments from Trump suggest he plans to build a strategic reserve of Bitcoin similar to the US strategic oil reserves.
Federal Reserve Chairman Powell said at a press conference this week that the Fed has no intention of holding Bitcoin.”We are not allowed to hold Bitcoin,” Powell said in a press conference after the FOMC meeting. In terms of the legal issues of holding Bitcoin, Powell said, “This is something Congress has to consider, but we have no intention of seeking it.”Change the law.”
The reason why the Fed is cautious about the path to cut interest rates next year is because of concerns about the Trump administration’s potential tariff policies that trigger the risk of upward inflation.The result is also obvious – Bitcoin continued its decline on Friday and approached $95,000 at one point, and earlier, Bitcoin just hit an all-time high of more than $108,000.
The U.S. Exchange-Trade Fund (ETF), which invests directly in Bitcoin, ended its 15-day straight inflow, setting a record of $680 million outflow, highlighting the shift in market sentiment.Strahinja Savic, head of data and analysis at FRNT Financial, said it was “very typical” to see such a pullback in the cryptocurrency bull market, and QCP Capital said in a report that the root cause of the sell-off was the market’s “over-optimistic” position.
The Fed’s hawkish turn on Thursday put pressure on most risky assets.Bitcoin prices have still risen nearly 50% since pro-cryptocurrency Donald Trump won the U.S. presidential election on November 5.”It looks like investors are taking profits at the end of the year, and there is no fundamental factor that triggered the sell-off,” said Parataxis’ Edward Chin.
As Fed rate cuts are expected to decrease in expectations in 2025, some investors may be opting to reduce exposure and take profits.”Technically, caution should be taken in the short term. This doesn’t mean we’ll see a price plunge soon, but the momentum of the uptrend has obviously weakened, buyers said in a note.Have lost dominance and control over the market.”
Which countries should launch Bitcoin strategic reserves?
In fact, with Trump’s “official announcement” of support for Bitcoin and claiming to establish a strategic reserve of Bitcoin, some countries have begun to get ready to move.BitkoalaKoala Finance has been sorted out as follows:
1. United States:Wyoming Senator Cynthia Lummis proposed a bill last spring called the Bitcoin Act, which proposes that the U.S. buy up to 200,000 bitcoins per year over five years, or the total supply of the token5% of the quantity.Bitcoin will be stored in a “decentralized secure Bitcoin vault network operated by the U.S. Treasury Department”, and token acquisitions will be accomplished through the diversification of existing Fed funds such as bonds, loans and gold.
In addition, at the state level of the United States, the establishment of Bitcoin reserves is also underway.For example, a Texas lawmaker proposed a bill last week to establish a Bitcoin reserve that would be held for at least five years;11Pennsylvania has also introduced a similar bill.
2. Russia:According to the Russian state news agency Ria, in November last year, several Russian lawmakers suggested establishing a “cryptocurrency reserve” in the “treasury”, but were opposed by Anatoly Aksakov, chairman of the Russian State Duma Committee.But just one month later, Russian Parliament representative Anton Tkachev once again proposed to establish a national Bitcoin reserve.
3. Japan:Japanese lawmaker Satoshi HamadaHamada) submitted a formal request to the legislature in December to discuss the establishment of a national Bitcoin reserve in Japan.
4. Poland:Polish presidential candidate Sławomir Mentzen advocates building strategic Bitcoin reserves and advocates passing crypto-friendly laws and regulations in Poland, saying: “If I become the president of Poland, our country will become a safe haven for cryptocurrencies, with very friendly regulations, low tax rates, and support attitudes from banks and regulators.”
5. Brazil:The Brazilian government has proposed a bill to establish a national Bitcoin reserve.Under the proposed legislation submitted, Bitcoin’s strategic reserves of sovereignty (RESBit) will account for 5% of Brazil’s international reserves.Its goal is to diversify the assets of the Brazilian Ministry of Finance.
6. El Salvador:On-chain data shows that El Salvador wallet address purchased 11 bitcoins worth $1.07 million for its strategic bitcoin reserves.The news was confirmed by the El Salvador Bitcoin Office, who said it had transferred $1 million worth of BTC to El Salvador’s strategic Bitcoin reserves.
Why are more and more countries launching strategic reserves of Bitcoin?
There are multiple complex reasons and considerations behind launching Bitcoin strategic reserves.We can analyze it from the following aspects:
1. Economic Diversification and Financial Sovereignty
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Hedging inflation risks:Traditional fiat currencies face the risk of inflation. In contrast, the total amount of Bitcoin is limited and has the characteristics of decentralization. In theory, it is not easily affected by excessive government printing of money, so it is regarded as a hedge against inflation risks.tool.The value of Bitcoin may continue to grow over time and can be used as a means of long-term value storage.
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Enhance financial sovereignty:The traditional financial system is often controlled by a few large financial institutions, and the monetary policies of governments are also affected by international financial organizations.By holding Bitcoin, countries can reduce their dependence on traditional financial systems and reduce their limitations on economic policies of other countries.To a certain extent, Bitcoin can give countries more financial autonomy and give them greater voice in the international financial system.
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Attract investment:Incorporating Bitcoin into its strategic reserves can send a positive signal to the market that the government supports the development of digital assets, which will attract more investors and businesses to enter the digital asset market in their country, thereby promoting the prosperity of the digital asset industry.The development of the asset industry can create more job opportunities and promote economic growth.
2. Improve the international image
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Avoid sanctions risks:When international relations are tense, governments often impose financial sanctions on each other, freeze assets and restrict transactions.As a decentralized digital currency, Bitcoin has high anonymity and can circumvent sanctions from the traditional financial system.By holding Bitcoin, countries can transfer some of their assets to areas of digital assets that are not easily frozen, thereby protecting their country’s wealth.
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Enhance international image:The digital currency field is the emerging technological frontier, attracting more talents and technologies will help enhance the country’s scientific and technological innovation capabilities.Laying out Bitcoin can give a country a leading position in the digital currency field and enhance its influence on a global scale.Showing a positive attitude in the field of digital currency can shape a country’s image of openness, innovation and embracing the future.
3. Enhance financial independence
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Get rid of the dollar hegemony:As the world’s major reserve currency, the US dollar has had a profound impact on the international financial system.By holding Bitcoin, countries can reduce their dependence on the US dollar and enhance financial independence.Bitcoin can serve as a new reserve asset to help countries diversify exchange rate risks.
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Part of the future financial system:With the rapid development of the digital economy and the increasing demand for digital assets, Bitcoin, as the earliest digital currency, is expected to become an important part of the future financial system.Bitcoin can achieve fast and low-cost cross-border payments, which is expected to replace the traditional international payment system.Smart contracts based on Bitcoin blockchain technology can achieve more efficient and secure transactions, providing broad space for financial innovation.Incorporating Bitcoin into its strategic reserves can help countries diversify their asset allocation and reduce the risk of a single asset.
Summarize
Bitcoin strategic reserves are a complex issue, involving many aspects such as economy and finance.It should be noted that Bitcoin strategic reserves also have certain risks, such as the violent fluctuations in Bitcoin prices, which may bring uncertainty to national finances; in addition, the global supervision of digital assets is not yet perfect, and there may be legal risks.Bitcoin technology itself is also constantly developing, and there may be security risks.
In fact, different countries have different motivations and considerations for launching Bitcoin strategic reserves, but overall they all hope to respond to the challenges of the traditional financial system in this way, enhance national competitiveness, and prepare for the future financial landscape.
