President Donald Trump has signed an executive order to establish a “Strategic Bitcoin Reserve” in the United States. White House crypto chief David Sacks referred to it as a “digital Fort Knox,” comparing it to traditional gold reserves, indicating Trump’s strong support for the cryptocurrency industry.
The US Bitcoin Reserve starts with 200,000 bitcoins, worth about $17 billion. These coins come from criminal and civil seizures. The reserve will stay secure indefinitely. More bitcoin can join it if the addition is “budget-neutral,” meaning no extra cost to taxpayers. Gold hit $3,000 per ounce recently, showing its safe-haven appeal. Can bitcoin do the same?
Bitcoin’s price dipped after the announcement but later stabilized. Analysts expected a bigger boost. Dessislava Aubert from Kaiko told AFP that the US must return much of its 198,000 seized tokens to Bitfinex hack victims, which limits the reserve’s impact. Some wonder if ether, XRP, Solana, or Cardano might join the mix, as Trump suggested.
President Trump created a strategic Bitcoin reserve, effectively entrenching Bitcoin’s legitimacy as a mainstream financial instrument. But how will it work exactly? @olgakharif explains https://t.co/n6OW4F0fOf pic.twitter.com/AuOM6pLKtP
— Bloomberg TV (@BloombergTV) March 14, 2025Gold vs. Bitcoin Debate
Critics argue bitcoin lacks gold’s intrinsic value and stability. Gold helps countries weather inflation and secure loans. Yet, Sacks says holding bitcoin long-term curbs its volatility. Stephane Ifrah of Coinhouse agrees, noting bitcoin’s 21-million-coin cap mirrors gold’s rarity. Plus, its transparent supply beats Fort Knox’s secrecy.
Read: Bitcoin Surges Past $105,000 on U.S. Strategic Reserve Fund News
Molly White, a crypto skeptic, sees a catch. She claims the US Bitcoin Reserve pushes crypto industry growth to benefit investors like Trump.
According to the Financial Times, Trump earned $350 million from his $TRUMP meme coin. Rumors of a Binance stake swirled, too, though they were denied. Trump once vowed to make the US the “crypto capital.” Is this personal gain in disguise?
Other nations are watching. Brazil is considering a crypto reserve, while Switzerland has said no. Germany sold 50,000 seized bitcoins last year. El Salvador dropped bitcoin as currency due to its low use. Bhutan, however, holds $900 million in bitcoin—30% of its GDP. The US Bitcoin Reserve could inspire more moves.
