Bitcoin becoming a multi-national strategic reserve is a victory of civil rights over government power.

Politics is a game of catering to ideas.

Ideas, in the political realm, are called public opinion, and in the crypto realm, they are called consensus.

Many things that people believe to be indestructible are actually products of ideas.

If the majority's perception changes, these things can change in an instant.


No matter how dictatorial the tyrant is, how powerful the state apparatus is, or how terrifying the blade and bomb are, they will inevitably lose in the face of widespread public opinion.

Becoming a national reserve is another strong concept on the road to Bitcoin development.


When a politician begins to promote this idea, it means that this idea has gained recognition from a considerable number of people, which will certainly prompt more politicians to align with this idea and inevitably raise awareness, evaluation, reflection, and follow-up from other countries.


The inclusion of Bitcoin in the strategic reserves of multiple countries is a victory of civil rights over government power.


1️⃣ (2024 Bitcoin Strategic Reserve Act)

The U.S. starting to believe in BTC is good news for the whole world, not bad news.

The U.S. that does not believe in BTC will promote its dollar hegemony, continuously exporting zero-cost printed dollars to exchange for valuable resources and goods from others.

This is indeed a kind of exploitation brought about by seigniorage.

The code of Bitcoin is all open source.

Anyone can download and review every line of code.

Satoshi Nakamoto cannot hide any backdoors.

Anyone can make any modifications to the code.

The difficult part is that after you modify the code, why would others want to use it?

If you cannot convince thousands of computer nodes scattered around the world to use your code, what you modified is meaningless.

This is called public consensus.

Even a powerful entity like the U.S. can hardly achieve changing the code rules to plunder other BTC holders.

Let's talk about the U.S. first; after all, it is the leader. Trump mentioned the 'Bitcoin Strategic Reserve' at the 2024 Bitcoin Conference, planning to promote the appreciation of the dollar and repay national debt by establishing a Bitcoin strategic reserve.


Specifically, the (2024 Bitcoin Strategic Reserve Act) mainly includes the following content:

1. Act goal: By including Bitcoin in the U.S. national asset reserves, provide an effective tool for the U.S. to combat economic uncertainty and currency instability, thereby enhancing national financial resilience, maintaining a leading position in global financial innovation, and ensuring the U.S. is in a favorable position in future economic competition.


2. Bitcoin purchasing plan: Acquire Bitcoin through diversified existing funding sources such as the Federal Reserve System and internal funds from the Treasury. Purchase no more than 200,000 Bitcoins per year for five years, totaling 1 million Bitcoins, with the planned total accounting for about 5% of the global Bitcoin total supply, comparable to the scale of U.S. gold reserves. The purchasing process will be transparent and strategic to minimize market disruption.


3. Establishing a secure storage network: The U.S. Treasury is responsible for operating a decentralized Bitcoin storage network to ensure that the physical and network security of national Bitcoin assets meet the highest standards.


4. Holding duration and usage rules: The Bitcoin purchased by the government will be held for at least 20 years. During this period, Bitcoin cannot be sold, exchanged, or auctioned off except for the repayment of national debt. After the initial holding period, no more than 10% of the reserves can be sold within any two-year period.


On November 19, 2024, the Economic Daily published an article titled 'Will Bitcoin Become a U.S. Reserve Asset?' in the third-page international section.


BTC has been around for nearly 16 years.

From scratch, over 16 years, how many people dare to believe, are willing to believe, and can persist in believing that it will one day have the opportunity to become the reserve asset of a world-class power?


The Trump administration may initiate the establishment of a Bitcoin strategic reserve through executive orders, but substantial financial commitments usually require Congress to take action to allocate funds and establish a legal framework.


2️⃣ The wave of multi-national strategic reserves is rising, will Bitcoin reshape the sovereign nation's balance sheet?

Gold has a history of over a thousand years as a global strategic reserve asset, while 15-year-old Bitcoin is initiating new challenges.


What does a strategic reserve asset of 1 million BTC mean? According to statistics from the World Gold Council, as of the third quarter of 2024, the Federal Reserve's gold reserves totaled 8,133.46 tons (approximately $530 billion), firmly ranking first in the world, while the current market price of 1 million BTC is nearly $100 billion, almost equivalent to 19% of the U.S. gold reserves!


So what exactly is a 'strategic reserve asset'?

It's simple: a 'strategic reserve asset' is a key asset held by a government or regional authority, aimed at addressing economic fluctuations, financial crises, or geopolitical risks, maintaining the country's financial stability, economic security, and international competitiveness. They typically have the following characteristics:

High value and universal acceptability.

Safety and stability.

Liquidity.

At the corporate level, 'strategic reserve assets' also help enterprises/institutions achieve financial stability, enhance risk resistance, and support their long-term growth strategies. Especially during periods of economic fluctuations, strategic reserve assets are often the first line of defense for enterprises against risks.

Traditional strategic reserve assets mainly include:

Gold: Widely regarded as a stable value storage tool due to its scarcity and anti-inflation capabilities.

Foreign exchange reserves: Reserve currencies dominated by the U.S. dollar are important means to support international trade and payments.

Special Drawing Rights (SDR): Allocated by the International Monetary Fund (IMF) to supplement the official reserves of member countries.

This also means that assets that can become 'strategic reserves' must have a comprehensive advantage of value stability, global recognition, and convenient circulation.


As an emerging digital asset, Bitcoin is gradually meeting these conditions and beginning to be seen as a potential alternative to gold.


El Salvador: Daily investment of 1 BTC.


El Salvador is the first country in the world to establish Bitcoin as legal tender. As early as September 7, 2021, the country enacted relevant legislation. Subsequently, it launched the electronic wallet Chivo and preloaded Bitcoin worth $30 for each resident who downloaded the wallet. This move not only integrates Bitcoin into the national economic system but also demonstrates its firm 'Bitcoinization' route.


Moreover, whenever the crypto market experiences significant fluctuations, El Salvador's President Nayib Bukele often announces Bitcoin purchases on social media, instilling confidence in the market.


Currently, El Salvador continues to buy 1 BTC daily. With a series of 'bottom-fishing' strategies, as of December 10, its BTC holdings have reached 5,959.77 BTC, with a market value of approximately $577 million. Although this holding is not large globally, as a small economy, this firm Bitcoin strategy is noteworthy and provides a unique experimental case for other countries.


Bhutan: BTC holdings account for over 25% of the country's GDP.

Since 2021, Bhutan has actively mined Bitcoin, a strategy that has allowed it to continuously increase reserves despite fluctuations in Bitcoin prices.


Bhutan utilizes the hydropower resources of the Himalayas for Bitcoin mining, providing energy for its mining operations.


As of now, Bhutan has held 13,011 Bitcoins, becoming the fourth largest government Bitcoin holder in the world, with a total value of its crypto assets exceeding $1 billion, accounting for over 25% of the country's GDP.


The strategic value of Bitcoin is gradually being transmitted from the national level to the corporate and institutional level. Although a country's reserve layout directly affects the policy environment, enterprises are the main practitioners of adoption. Therefore, Bitcoin is not only a hedge tool but is gradually becoming a strategic component of corporate balance sheets.


From an objective perspective, mainstream institutions and traditional enterprises incorporating Bitcoin into their balance sheets can indeed bring multiple advantages to the enterprises:

Anti-inflation capability: The fixed scarcity of Bitcoin's total supply of 21 million gives it strong anti-inflation properties. In an environment of global monetary easing and fiat currency depreciation, it can help enterprises stabilize asset value.


Diversified investment portfolio: As an emerging asset class, Bitcoin provides enterprises with rich asset allocation opportunities. By incorporating it into the asset category, enterprises can reduce reliance on a single asset class, thereby enhancing overall financial stability.


Enhancing corporate brand and market image: Holding Bitcoin not only reflects the enterprise's support for innovative technologies and future economic models but also enhances the company's competitiveness in the market, helping to shape a more forward-looking brand image.


'The light boat has passed through ten thousand mountains.' Regardless of whether Bitcoin can become the strategic reserve asset of the United States or other countries in the next four years, it has already won an important victory on the path of adoption.


The next four years may be a key time window for answering this question.


Let's work together!

#BTC