The Strategic Petroleum Reserve, a long-standing program that stores oil for national security purposes, has sparked debate over the years due to its economic and strategic relevance. Similarly, the Trump administration’s plan to establish a Strategic Bitcoin Reserve and Digital Assets Stockpile raises questions about the government’s decision-making process.
In essence, stockpiling a global commodity like oil or digital assets like cryptocurrencies makes little sense, as they are always accessible at market prices. The 1970s oil embargo did not deter oil from reaching the US; instead, it was symbolic and economic in nature. Cryptocurrencies face similar limitations as traditional money.
The US government stockpiling effects rather than causes of wealth is puzzling, especially when digital assets can be accessed digitally and at any time. In contrast, physical currencies like gold are tangible and have inherent value.
Proponents might argue that the strategic reserve will allow the government to invest in a growing market, but this ignores the fact that cryptocurrency prices are volatile and subject to fluctuations. The program’s true purpose is unclear, especially considering its potential impact on market dynamics and the government’s credibility as an investor.
Ultimately, the Strategic Bitcoin Reserve and Digital Assets Stockpile raises concerns about the government’s decision-making process and its grasp of fundamental economic principles. As money is merely a reflection of wealth, the reserve’s value depends on the underlying economy, rather than the digital assets themselves.
Source: https://www.forbes.com/sites/johntamny/2025/03/23/a-crypto-reserve-misunderstands-money-shows-why-crypto-isnt-money