Bitcoin: From Speculative Bubble to Global Financial Cornerstone

CN
7 hours ago

From being questioned to being recognized, Bitcoin, with its unique advantages, will gradually become a strategic reserve asset for various countries.

Author: Joshua Moroles

Translated by: Baihua Blockchain

For years, Bitcoin's critics have viewed it as a speculative bubble, an asset without intrinsic value, or something that governments would ultimately crush. However, reality is proving otherwise. The world is no longer asking whether Bitcoin will become a strategic reserve asset—the question now is when full adoption will occur.

 

 01 The U.S. Has Joined the Game

The most significant development occurred on March 6, 2025, when President Donald Trump signed an executive order establishing the U.S. Strategic Bitcoin Reserve (SBR) and a broader digital asset reserve. This is not a symbolic gesture but a direct policy shift at the federal level to accumulate and hold Bitcoin. The order also suspended the auction of confiscated Bitcoin, indicating that the U.S. government now views Bitcoin as a long-term strategic asset rather than a short-term liquidation target.

Why This Move Is Important

1. National Security and Financial Sovereignty

In an era of geopolitical uncertainty and global de-dollarization, Bitcoin serves as an independent, uncensorable reserve asset that no single country can control.

2. Inflation Hedge

With rising debt and concerns over the long-term stability of the dollar, Bitcoin, like gold, offers an alternative means of value storage.

3. Economic Dominance

Trump has repeatedly stated his desire for the U.S. to become the "world's Bitcoin superpower." This marks a new era where Bitcoin is no longer seen as a threat but as an opportunity.

Key Figures Driving the Bitcoin Agenda

1. Treasury Secretary Scott Bensent

He hinted at acquiring Bitcoin through creative means that do not impact taxpayers, such as reassessing gold reserves or even issuing Bitcoin-denominated debt.

2. Commerce Secretary Howard Lutnick

He has publicly supported Bitcoin, predicting that due to its scarcity and global demand, Bitcoin prices will rise significantly.

3. Senator Cynthia Lummis

She introduced the "Bitcoin Bill," aiming for the Treasury to acquire 1 million Bitcoins within five years to ensure the U.S. maintains a dominant position in global Bitcoin holdings.

Even Democratic Congressman Ro Khanna, known for his pragmatic stance on tech issues, supports holding confiscated Bitcoin rather than selling it, indicating that Bitcoin's potential as a reserve asset has gained bipartisan recognition.

 

 02 State-Level Bitcoin Reserves Are Coming

While the federal government's actions are historic, U.S. states are moving faster. As of early 2025, at least 12 states have passed or proposed strategic Bitcoin reserve bills, with reports of 18 states exploring similar policies.

Which States Are Leading the Way?

Texas

As a major Bitcoin mining hub, Texas has proposed allowing miners to pay taxes in Bitcoin, with those revenues used to establish a state reserve.

Wyoming

Long a supporter of cryptocurrencies, Wyoming is pushing to hold Bitcoin as a financial asset, viewing it as "digital gold."

Ohio, Florida, Arizona, and New Hampshire

These states have been advocating for Bitcoin-friendly regulations and are now seeking to formally incorporate Bitcoin into their financial reserves.

Even Massachusetts

Traditionally seen as a state with stricter regulations, Massachusetts' involvement indicates that Bitcoin adoption is transcending partisan boundaries.

 

 03 Why States Are Turning to Bitcoin Reserves

Hedging Against Inflation

Bitcoin's fixed supply of 21 million makes it an attractive means of value storage.

Financial Independence

States accumulating Bitcoin will possess an asset that is not bound by federal monetary policy or susceptible to inflation.

Competitive Advantage

States that adopt Bitcoin early will attract more businesses, investors, and mining infrastructure.

 

 04 The Global Bitcoin Reserve Race Has Begun

Although the U.S. is just starting to actively promote Bitcoin, other countries have been quietly accumulating Bitcoin for years.

El Salvador

The first country to adopt Bitcoin as legal tender, El Salvador has been steadily purchasing Bitcoin and even mining it using volcanic energy.

Bhutan

This small but strategically significant country has been secretly mining Bitcoin using hydropower, accumulating Bitcoin without drawing much attention.

Russia

While publicly imposing restrictions on Bitcoin, reports suggest it has been holding Bitcoin reserves through government-controlled mining operations or as part of its financial strategy.

There is no doubt: Bitcoin is no longer a fringe asset—it is becoming a core part of global reserve strategies.

 

 05 Why Bitcoin? Its Unique Attributes as a Reserve Asset

The rise of Bitcoin as a global reserve asset is not just speculation but a result of its fundamental attributes:

Immutable and Censorship-Resistant

Bitcoin is decentralized, with no government or central bank able to manipulate its supply. Transactions cannot be reversed or censored, ensuring true financial sovereignty.

Scarcity (Hard Money)

Unlike fiat currencies that can be printed infinitely, Bitcoin's supply is capped at 21 million—making it the first truly scarce digital asset.

Global, Borderless Asset

Bitcoin operates outside traditional banking systems and can be transferred instantly anywhere, anytime—whether it's 1 satoshi (0.00000001 BTC) or worth billions.

No Central Issuer or Control

Unlike gold (which can be confiscated) or fiat currencies (controlled by central banks), Bitcoin has no issuer. It exists purely on a decentralized network.

Transparency and Security

Bitcoin operates on a public ledger (blockchain) where anyone can verify transactions, making it the most transparent and auditable monetary system in history.

 

 06 The Turning Point Has Arrived

Bitcoin is no longer a speculative bet—it is becoming a strategic asset for governments and financial elites. If you can't see the writing on the wall, it's either because you weren't paying attention or you refuse to accept reality.

The U.S. is accumulating Bitcoin at both the federal and state levels.

Countries like El Salvador and Bhutan have begun acquiring Bitcoin through purchases and mining.

Bitcoin's attributes make it the perfect reserve asset in an era of fiat currency devaluation and geopolitical uncertainty.

The question is not whether Bitcoin will become the dominant financial asset of the future, but when. The institutions, governments, and states that act first will benefit the most, while the hesitant will be left behind.

The choice is simple: Adapt or be left behind.

Article link: https://www.hellobtc.com/kp/du/03/5716.html

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