The possible adoption of a Bitcoin Strategic Reserve by the United States could trigger a global race between countries to accumulate bitcoin, according to a prediction by Simon Georvich, CEO of Metaplanet.
According to the executive, the US decision to create a strategic Bitcoin reserve would have the potential to trigger a “global domino effect”, putting Bitcoin in the spotlight of countries around the world.
He argues that such a move would activate “game theory” on the international stage, leading nations to compete to acquire Bitcoin to avoid higher costs in the future and possible economic and strategic disadvantages.
Game theory is the study of how people, companies or countries make decisions in situations where what each does affects the other.
Historical Example: When gunpowder was introduced into warfare, countries that adopted it first gained a military advantage. Others had to follow quickly to keep up.
Global domino effect
Georvich explained that in a competitive environment, countries that act as pioneers in the accumulation of Bitcoin would be in an advantageous position, while those that are slow to react may face higher prices and challenges in securing their share of the cryptocurrency market.
“The US adopting a Bitcoin Strategic Reserve could trigger a global domino effect. As game theory kicks in, nation states will rush to accumulate the cryptocurrency, fearing being left behind,” Georvich wrote.
The concept of a Bitcoin Strategic Reserve is not entirely new, but it has gained renewed attention due to the increased institutional use of cryptocurrency and the uncertainties surrounding the global economy.
Analysts say Bitcoin could function as a kind of “digital gold,” offering a hedge against inflation and economic instability.
Some argue that adopting Bitcoin as a strategic reserve could strengthen the US's role as a leader in the fintech sector, while others warn of the risks associated with the asset's volatility.
Georvich’s prediction comes at a time when several countries are already exploring the use of cryptocurrencies in their economies. El Salvador, for example, adopted Bitcoin as legal tender in 2021, attracting global attention.
Countries adopting Bitcoin
Some countries have begun to explore or officially adopt Bitcoin, the most emblematic case being El Salvador, which currently has more than 6,000 bitcoins in its reserves.
While El Salvador is one of the pioneers, Japan is known for being the first country to adopt clear regulations for the use of cryptocurrencies. In 2017, the Japanese government officially recognized Bitcoin as a form of payment, creating a favorable environment for cryptocurrency exchanges to operate in the country.
Another important example is Switzerland, which, although it has not adopted Bitcoin as its official currency, has become one of the largest global hubs for cryptocurrencies and blockchain.
The city of Zug, known as “Crypto Valley,” is a hub of innovation in the sector. The Swiss regulatory environment favors the use of cryptocurrencies, and companies can even pay taxes in Bitcoin in some locations.
This has attracted many startups and investors, making Switzerland a model for integrating cryptocurrencies into the traditional financial system.
In addition to these examples, the Central African Republic (CAR) also made history by adopting Bitcoin as legal tender in April 2022, becoming the second country to make this decision after El Salvador.
This measure was an attempt to modernize the economy of a country with major financial problems, where the use of cryptocurrencies can provide greater financial inclusion and facilitate international transactions.
Countries such as Brazil, Russia, Poland and Japan are also discussing or showing interest in adopting Bitcoin, whether through bills, official statements or debates between authorities.
Such examples show that the adoption of Bitcoin by countries is not limited to just an enthusiast theory or a passing fad, but involves a possible start of a broader rush for digital gold.
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