Strategic Bitcoin reserve: Not only for countries but for protocols
Nations, companies and blockchain protocols consider Bitcoin reserves as a strategic asset, but there’s game theory hiding behind the decision-making.
Opinion by: Luke Xie, co-founder and CEO of SatLayer
Bitcoin’s (BTC) status as a store of value is now firmly established, with a market capitalization of $1 trillion+ for the past year and more than $110 billion held in exchange-traded funds (ETFs) alone. That has converted many skeptics and vindicated diamond-handed BTC hodlers. Bitcoin’s strength has also fueled discussions of strategic Bitcoin reserves (SBRs) worldwide, in the US and major countries, including Germany, Russia and Brazil. More and more companies are also adopting SBRs by putting Bitcoin on their balance sheets, led by MicroStrategy’s massive success. Missing are layer-1 blockchains having BTC as part of their treasury, as they’re typically on the bleeding edge of adoption, here ironically at risk of being “front-run” by traditional nation-states and corporations in having SBRs.
It’s not crypto without game theory! The fun here is that nation-state SBRs are inevitable. The more the US debates and evaluates an SBR, the more seriously other nations must take the idea of a US SBR, which in turn means other nations start accumulating BTC first on the non-zero chance the US adopts an SBR.
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Author: Luke Xie
