The US government is moving forward with the creation of a strategic cryptocurrency reserve under the Donald Trump administration. However, experts such as Matthew Sigel argue that only Bitcoin meets the criteria to support the State, while the risks of including other digital assets are being analyzed.
US President Donald Trump has just confirmed the creation of a Strategic Cryptocurrency Reserve that will include Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA).
This decision aligns with the executive order he signed during his first week in office, where he prioritized policies to position the country as a global leader in digital assets. The plan, however, has sparked debate among analysts and lawmakers. While some celebrate the institutional adoption of cryptocurrencies, experts such as Matthew Sigel, head of digital asset research at VanEck, argue that Bitcoin is the only cryptocurrency suitable to back federal reserves due to its decentralization and security.
BUY BITCOINCurrently, the United States already owns around 208.000 BTC valued at around $19.000 billion, acquired through seizures and federal investigations. The strategy includes not selling these assets and buying more to accumulate a million Bitcoin within two decades, according to legislative proposals such as that of Cynthia Lummis. However, critics warn of potential risks of volatility and centralization if younger cryptocurrencies are integrated.
Bitcoin vs. altcoins: What criteria define a federal reserve?
Matthew Sigel, along with other economists, emphasizes that Bitcoin is the only cryptocurrency with suitable characteristics for a state reserve. We can say that Sigel's argument is based on three pillars that define the leading cryptocurrency: decentralization, liquidity and institutional adoptionUnlike projects like Solana or Cardano, which are listed in the US Strategic Reserve, Bitcoin operates without a central entity controlling its code or issuance, which reduces the risk of manipulation. In addition, its market capitalization, which is above $1,83 trillion, and daily transaction volume, which is around $64.000 billion, far exceed other cryptocurrencies.
Other market experts have pointed out that a significant percentage of the Bitcoin in circulation is held by long-term investors, which guarantees stability. In contrast, some altcoins have high concentrations in funds and developers, which makes them vulnerable to greater fluctuations.
El debate There are also technical aspects involved. Bitcoin uses a consensus mechanism called proof-of-work, which requires mining and is considered more secure against attacks than Ethereum or Solana’s proof-of-stake. Several experts argue that this reinforces its role as “digital gold,” while altcoins would work better as complementary assets.
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Trump's strategy: From executive order to BTC accumulation
In January, Trump signed an executive order to create a working group to design the Strategic Cryptocurrency Reserve. The initiative, which was reinforced with a new announcement on March 2, seeks to fulfill Trump’s promise to make the United States the “cryptocurrency capital of the world.”
So far, 15 states are seeking to pass new legislation to allow Bitcoin to be integrated as an asset in local reserves, and senators such as Cynthia Lummis are pushing for the use of cryptocurrency as a strategic asset at the federal level through the Bitcoin Act, which would allow the Treasury to acquire one million BTC over a five-year period.
However, while the acquisition of Bitcoin by a government like the US government can positively impact its adoption and long-term growth, it could also give rise to new risks, such as manipulation. If the Treasury controls large portions of Bitcoin and altcoins, it could influence their prices through strategic sales, which is contrary to the original philosophy of cryptocurrencies. A worrying precedent for this occurred in July 2024, when Germany sold around 50.000 seized BTC, causing a 12% drop in its price.
BUY BITCOIN ON BIT2MESo while the creation of a Strategic Cryptocurrency Reserve marks a shift in US financial policy, recognising the potential of Bitcoin and other digital assets, it has also opened up debate over which cryptocurrencies should be included to ensure innovation and financial stability.
Investing in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.
