Brian Armstrong, CEO of Coinbase, believes that when constructing a crypto strategic reserve, the United States should primarily focus on Bitcoin. He argues that compared to traditional assets like gold, Bitcoin presents the best option. This approach would not only simplify the reserve but also mitigate the risks associated with handling multiple types of cryptocurrencies.
Bitcoin As The Strongest Choice
Armstrong asserts that Bitcoin stands out as the safest long-term reserve asset. Unlike other cryptocurrencies, Bitcoin is widely regarded as a dependable store of value, exhibiting strong fundamentals and stability. He emphasizes that Bitcoin is the most recognized digital asset among governments and major financial institutions.
This statement is particularly timely as the U.S. government gears up to create a crypto strategic reserve. The proposed reserve could potentially include Bitcoin, Ethereum, Solana, Cardano, and XRP, with the intent of enhancing the U.S.’s standing in the global cryptocurrency landscape. Recent comments by President Donald Trump regarding this reserve have fueled further conversations about which additional assets should be included.
Excited to learn more. Still forming an opinion on asset allocation, but my current thinking is:
1. Just Bitcoin would probably be the best option – simplest, and clear story as successor to gold 2. If folks wanted more variety, you could do a market cap weighted index of crypto… https://t.co/jv8Gcn8N2S
— Brian Armstrong (@brian_armstrong) March 3, 2025
Alternative Approach Based On Market Share
While Armstrong prefers a Bitcoin-exclusive reserve, he also proposes an alternative. He suggests that the U.S. could consider a reserve based on market capitalization, which would involve holding various cryptocurrencies in alignment with their respective market shares.
For instance, if Bitcoin constitutes 50% of the market while Ethereum accounts for 20%, the reserve would mirror this distribution. This strategy allows for a diverse selection of assets but still preserves Bitcoin’s predominance. Furthermore, it would be adaptable in response to evolving market conditions.
Government Plans Still Unclear
As of now, the U.S. government has not reached a conclusive decision regarding the composition of the crypto reserve. Officials have yet to confirm whether Bitcoin will be the sole asset or if a mixture of cryptocurrencies will be utilized. This ongoing debate reveals a variety of perspectives on the most effective strategy.
Some advocates argue that a diversified reserve is inherently safer, as it spreads risk across multiple assets. Conversely, others echo Armstrong’s views, contending that Bitcoin alone offers a more secure and reliable choice. The outcome of this deliberation could significantly influence the U.S. government’s future interactions with cryptocurrency.
Bitcoin’s Growing Role In National Reserves
The idea of Bitcoin emerging as a reserve asset is gaining traction worldwide. Several nations, such as El Salvador, have already incorporated the leading cryptocurrency into their national reserves. Should the United States adopt a similar stance, it could have far-reaching effects on how other countries manage digital assets.
Armstrong’s perspective underscores a broader transition in how governments and organizations view Bitcoin. Despite the ongoing discussions, Bitcoin’s role as the dominant digital asset remains firmly established.
Featured image from Gemini Imagen, chart from TradingView
