Switzerland is considering adding Bitcoin to its national reserves, sparking a potential global trend towards digital currencies as a hedge against inflation. This move aligns with a broader global shift, driven by countries struggling with weak currencies and the rising dollar.
The US was one of the first to take notice, with President-elect Donald Trump’s focus on Bitcoin during his election campaign. Now, other nations like Japan are exploring Bitcoin as an alternative store of value, following the Yen’s plunge to a five-month low against the dollar.
Two main reasons drive this shift: addressing mounting trade and fiscal deficits, and growing institutional backing of Bitcoin. As major institutions recognize its potential, Bitcoin is being viewed as a solid financial asset, rather than just a speculative gamble.
However, building a reliable Bitcoin reserve requires several conditions to be met. While BTC has shown impressive growth in 2024, with a year-to-date increase of 140%, it still faces challenges from gold’s stability and real-world utility. The recent volatility in Bitcoin’s price serves as a reminder of its unpredictability.
Despite this, Bitcoin’s track record and increasing dominance make its adoption as a strategic reserve asset a growing possibility. Institutions must create true value rather than manipulating the market to make this vision a reality. As 2025 begins, the dollar’s volatility looms large, and Bitcoin’s potential role in stabilizing national reserves is worth watching closely.
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Source: https://eng.ambcrypto.com/switzerland-weighs-btc-reserves-could-this-spark-a-global-trend