In recent years, Bitcoin has gradually become an important choice for global companies and national strategic reserves. From legislative attempts in various states in the United States to corporate layouts around the world, its position as "digital gold" has become increasingly solid. Why has Bitcoin grown from a crypto asset to a strategic reserve? Is this a simple investment strategy or a redefinition of the future monetary order?
The United States leads the trend of Bitcoin strategic reserves
Recently, the Pennsylvania House of Representatives formally proposed the Pennsylvania Bitcoin Strategic Reserve Act, which proposes to allocate 10% of the state treasury's approximately $7 billion in funds to Bitcoin to combat inflation and optimize the investment portfolio. At the same time, U.S. Senator Cynthia Lummis submitted a more ambitious proposal to Congress, proposing to establish a "Bitcoin Reserve" operated by the Treasury Department within the next five years to purchase up to 1 million Bitcoins.
Even former President Trump said at the Bitcoin Conference in July this year that if he is elected president in November, he will push the United States to establish a "strategic Bitcoin reserve" and prevent the government from selling existing Bitcoin reserves. MicroStrategy founder Michael Saylor further pointed out that Bitcoin is an asset without counterparty risk, saying that "the strategic Bitcoin reserve will be the greatest deal of the 21st century."
Bitcoin holding boom around the world
Not only the United States, but more and more countries and institutions around the world are seriously considering including Bitcoin in their strategic reserves. According to the latest data, the total number of Bitcoins held by governments, institutions and enterprises has exceeded 2.66 million, accounting for 12.7% of the total supply of Bitcoin. This trend reflects the important role of Bitcoin as a tool for hedging inflation and optimizing asset allocation.
In terms of enterprises, MicroStrategy is far ahead with 330,000 bitcoins held, with a total investment of more than $16.5 billion. Tesla also purchased $1.5 billion worth of bitcoins in 2021 and currently holds 9,720 bitcoins. These companies regard Bitcoin as a core strategic asset to hedge against economic fluctuations, increase asset returns, and even promote technological innovation.
At the national level, the governments of the United States, China, Russia and other countries also indirectly or directly hold a large number of Bitcoins. For example, the United States has accumulated more than 200,000 Bitcoins through law enforcement actions, and China holds about 194,000 Bitcoins through judicial disposal. El Salvador, as the first country in the world to make Bitcoin a legal tender, currently holds 5,748 Bitcoins and plans to increase its holdings further.
Why Bitcoin?
1. Hedge against inflation and currency depreciation
Against the backdrop of continued global monetary easing, rising inflation rates have caused the purchasing power of cash assets to continue to shrink. With its fixed supply limit of 21 million coins, Bitcoin has become the first choice for companies and countries to deal with inflation. For example, MicroStrategy has achieved a return on investment of more than 80% by holding Bitcoin, and the average annual growth rate of Bitcoin in the past decade has exceeded 100%.
2. Asset diversification and flexibility
Traditional reserve assets are mainly concentrated in cash and short-term bonds, but the addition of Bitcoin makes the asset portfolio more flexible. Tesla CEO Elon Musk believes that the long-term return rate of Bitcoin is much higher than traditional asset allocation. According to data, there are currently 92 companies in the world holding Bitcoin, with a total of more than 2.6 million coins, further consolidating this trend.
3. Technological innovation and brand image
For many companies, holding Bitcoin is not only an investment, but also a way to demonstrate corporate innovation and values. For example, Block, Inc. promotes Bitcoin payment technology through its payment platform Cash App, demonstrating its commitment to the future of the digital economy. This strategy attracts a large number of young users while enhancing the brand's technological image.
4. Bypassing economic sanctions and financial sovereignty
For countries facing international economic sanctions, the decentralized nature of Bitcoin provides them with a new way to circumvent the traditional financial system. For example, Russia has accumulated reserves through Bitcoin mining and proposed using cryptocurrencies for international trade settlement, showing the importance of Bitcoin in its financial autonomy strategy.
Future opportunities and challenges of Bitcoin strategic reserves
The promotion of Bitcoin strategic reserves undoubtedly has great potential, but it also faces many challenges. Although Bitcoin's long-term growth potential has attracted many supporters, its price volatility has made some traditional financial professionals reserved. For example, American economist James Mackintosh pointed out that Bitcoin's high volatility makes it difficult to become a reliable national reserve tool.
Despite this, more and more signals indicate that both countries and companies will continue to increase their holdings of Bitcoin as a strategic reserve tool. As policies gradually become clearer, the scale of global Bitcoin strategic reserves may further expand in the future, thereby changing the traditional financial and monetary order.
The trend of Bitcoin as a strategic reserve is accelerating around the world. This is not only a technological innovation in wealth management, but also a far-reaching layout for the future financial system. From enterprises to countries, the layout of Bitcoin is not only an investment, but also a proactive definition of the future economic order.
