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US President Donald Trump has announced plans to set up a national Crypto Strategic Reserve, which will hold leading cryptocurrencies such as Bitcoin ($BTC (-0,4 %)), Ethereum ($ETH (-0,95 %) ), XRP ($XRP (+0,42 %)), Solana ($SOL (-1,62 %) ) and Cardano ($ADA (-1,71 %) ) are to be included. While some are celebrating this as a revolutionary step for the financial world, others see it as a risky experiment with an uncertain outcome.
Positive aspects of the crypto reserve
1. geopolitical and economic strategy
In the past, the US has often used its financial policy as an instrument of power - be it through sanctions or the influence of the US dollar. A crypto reserve could be a counterweight to dependence on fiat currencies and help the US prepare for a digitalized financial world in the long term.
2. diversification of government reserves
The US Federal Reserve currently holds almost 8,000 tons of gold as a reserve, which accounts for around 78% of its total currency reserves. Gold is considered safe, but it also has disadvantages: It is difficult to transfer and is dependent on physical deposits. Bitcoin, on the other hand, can be moved around the world in seconds and could be an alternative as "digital gold".
3. greater market acceptance for crypto
If one of the world's largest economies were to actively hold cryptocurrencies as a strategic reserve, this could send a signal to institutional investors. An investment by the US government would be seen as a vote of confidence in the crypto market and could lead to banks, hedge funds and companies investing more heavily in digital assets.
Critical view
1. high volatility - risk to public finances
Although Bitcoin is known as a store of value, its price fluctuations are enormous. While gold has risen by around 50 % in the last ten years, Bitcoin has increased in value by over 10,000 % in the same period - with extreme fluctuations. A sovereign reserve affected by such swings could cause financial instability.
2 Regulatory uncertainty and market manipulation
The US is still divided on how to regulate cryptocurrencies. While the SEC is taking action against some crypto projects, the CFTC views Bitcoin as a commodity. If the state invests in crypto, the question arises: will it intervene in the future to minimize its own losses? And wouldn't that be a distortion of the market?
3. environmental aspects - does the USA even care?
According to estimates by the University of Cambridge, Bitcoin mining consumes more electricity than entire countries such as Argentina. But let's be honest - has the US ever had a problem with accepting high energy consumption when it comes to economic or military interests?
Are these cryptocurrencies the right choice?
The choice of cryptocurrencies included in the reserve is crucial. Here's a closer look at the five candidates:
1. bitcoin ($BTC (-0,4 %)) - The digital gold?
✔️ High market capitalization (~1.8 trillion USD)
✔️ Strong security network through the Bitcoin network
❌ Slow transaction speed (only 7 transactions per second)
❌ High energy intensity
Bitcoin is often compared to gold and has already been used as a reserve asset by many companies and countries (e.g. El Salvador). However, it remains highly volatile and its scalability is limited.
2. ethereum ($ETH (-0,95 %)) - The foundation of the crypto economy?
✔️ Smart contracts enable a wide range of applications
✔️ Market leader in the field of DeFi and NFTs
❌ High transaction costs ("gas fees")
❌ Competition from new blockchain technologies
Ethereum has established itself as the dominant platform for decentralized applications. Following the switch to proof-of-stake, it has also become more energy-efficient. Nevertheless, high fees and scaling problems are still unresolved.
3. XRP ($XRP (+0,42 %)) - The controversial bank crypto?
✔️ High transaction speed (1,500 TPS)
✔️ Low costs for international transfers
❌ Ongoing legal disputes with the SEC
❌ Criticism of centralization (strong control by Ripple Labs)
XRP could be suitable for a state reserve, as it was designed as a bridge currency for international transfers. However, the long-standing dispute with the US Securities and Exchange Commission has raised doubts about the long-term security of the investment.
4. solana ($SOL (-1,62 %)) - The Ethereum killer?
✔️ Extremely fast transactions (up to 65,000 TPS)
✔️ Low fees
❌ Several network failures in recent years
❌ No mass adoption yet
Solana has the potential to surpass Ethereum in terms of speed, but the network has repeatedly struggled with technical problems. Whether a state should rely on a still young technology is questionable.
5 Cardano ($ADA (-1,71 %)) - The sustainable challenger?
✔️ Scientifically sound development approach
✔️ More sustainable than Bitcoin or Ethereum
❌ Slow development and low usage compared to Ethereum
❌ Market position still uncertain
Cardano is often praised as a sustainable and scientifically sound blockchain. However, many of its planned functions have not yet been fully implemented and it remains to be seen whether it can establish itself in the long term.
Conclusion - Ingenious move or dangerous experiment?
The idea of a state crypto reserve is innovative and could permanently change the financial market. Should the USA actually implement Bitcoin and Co. as a strategic reserve, this could send a signal to other nations.
However, in my opinion, the risk is high: high volatility, regulatory uncertainties and technical challenges leave some questions unanswered.
What do you think? Is a national crypto reserve the next logical step - or is the US making too risky a bet here? 🔥
