US Government Bitcoin Reserve: Why It’s Waiting for Other Nations to Move First
Summary:
Crypto entrepreneur Mike Alfred predicts the US government will only begin accumulating Bitcoin for its Strategic Bitcoin Reserve after other nations take the lead. While the Trump administration initiated plans for a BTC reserve in March 2024, analysts warn that hesitation could leave the US behind global competitors like Pakistan. Industry leaders project Bitcoin could reach $1 million by 2033, increasing pressure for national adoption as a reserve asset.
What This Means for You:
- Monitor foreign BTC adoption – Nations like Pakistan accelerating Bitcoin reserves may trigger US action
- Prepare for price volatility – Government accumulation could create supply shocks as institutional demand grows
- Diversify strategically – Consider allocating 1-5% of portfolio to Bitcoin as sovereign adoption accelerates
- Watch 2024 policy moves – Galaxy Digital predicts potential US BTC reserve announcement this year
Original Post:
The US government is unlikely to start accumulating Bitcoin for its strategic reserve until other nations make the first move, says crypto entrepreneur Mike Alfred.
Alfred said in a podcast published on Tuesday that the US government will start putting Bitcoin (BTC) into its reserve created earlier this year “when there is enough pressure externally.”
“Once the US government recognizes that others are taking action before them, that’ll probably catalyze additional action in the future,” he said, adding that the timeline for the US government’s action is up in the air.
It comes as other industry executives have been pushing for the US government to step up its pace of accumulating Bitcoin to avoid the stockpile’s size falling behind other nations.
Most governments will have Bitcoin when it’s worth $1 million
Alfred said that he was confident that Bitcoin would be worth $1 million a coin by 2033, a more conservative estimate compared to ARK Invest CEO Cathie Wood and Coinbase CEO Brian Armstrong, who anticipate Bitcoin will be worth seven-figures by as early as 2030.
“I think by the time that happens, almost every government will have some direct or indirect exposure to the asset, and it will be viewed as a common strategic reserve type of asset,” Alfred said.
US President Donald Trump signed an executive order in March directing the creation of a Strategic Bitcoin Reserve that would use budget-neutral ways to accumulate the cryptocurrency, but the plan has yet to be formally established.
In September, Galaxy Digital analyst Alex Thorn said there was a “strong chance” the US will announce this year that it has formed a Bitcoin reserve and is “formally holding BTC as a strategic asset.”
US government risks being “front-run,” says Bitcoiner
Alfred added that it “seemed impossible that the government would even acknowledge Bitcoin before Trump.”
Related: Bitcoin sinks under $90K: BitMine, Bitwise execs tip bottom this week
“I think we’ve made quite a bit of progress in a short period of time,” he said.
Others are urging the government to move even faster. Jan3 founder Samson Mow told Cointelegraph in June that the US “has to start” acquiring Bitcoin this year or risk being “front-run” by nations such as Pakistan, who are also planning to acquire Bitcoin.
Extra Information:
Related Resources:
• Full text of Trump’s Bitcoin Reserve Executive Order – Details the legal framework for potential US BTC accumulation
• Galaxy Digital Research Reports – Institutional-grade analysis on Bitcoin as a reserve asset
• Bitcoin Treasury Holdings Tracker – Monitors corporate and government BTC reserves in real-time
People Also Ask About:
- Which countries hold Bitcoin reserves? El Salvador and Bhutan currently hold BTC reserves, with Pakistan considering adoption.
- How would the US acquire Bitcoin? Potential methods include mining, confiscations, or market purchases using Treasury funds.
- What percentage of reserves would be Bitcoin? Analysts suggest 1-5% allocations could emerge as standard practice.
- Does the Federal Reserve support Bitcoin? Current leadership remains skeptical, but political pressure may change this stance.
- How does Bitcoin compare to gold reserves? BTC offers superior portability and verifiability but higher volatility than traditional gold holdings.
Expert Opinion:
“The geopolitical race for Bitcoin reserves mirrors the 20th century scramble for gold – nations that secure meaningful allocations early will gain financial sovereignty advantages in the coming digital asset era. The US faces a critical inflection point where bureaucratic hesitation could cede monetary primacy to more agile competitors,” says Dr. Elena Starkov, Monetary Economist at Harvard’s Digital Assets Initiative.
Key Terms:
- Strategic Bitcoin Reserve accumulation timeline
- US government cryptocurrency reserve policy
- Bitcoin as sovereign wealth asset
- Global BTC adoption by central banks
- Digital gold standard competition
- Executive Order 2024 Bitcoin mandate
- Geopolitical implications of crypto reserves
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