The Bitcoin strategic reserve can be harmful to BTC and USD, warns Haider Rafique, manager of the OKX cryptocurrency exchange.
Bitcoin strategic reserve is not that good at all?
Rafique told the CointeLgraph portal that the establishment of government BTC reserves would not be a positive signal: every government with some part of the BTC supply could manipulate the price of cryptocurrency, selling its resources on the market and thus undermining the basic principle of bitcoin – neutral, decentralized currency.
He pointed to what is taking place in the USA:
Despite the recent two -party support for cryptocurrencies, it should be remembered that administrative policy may change quickly. Along with the change in the circumstances, the concentration of large amounts of BTC in the country’s balance sheet can be a risk of sales.
And he is right. An example is what the German government did. In 2024 he sold 50,000 BTC. These were measures that were confiscated by criminals, but which – according to the law that applies in Germany – could not be kept for a long time by services, because the value of Bitcoin often changes.
BTC strategic reserve
The idea of Bitcoin’s strategic reserve, however, is still close to many supporters of Bitcoin who claim that the creation of such a cryptoskarbca is another step leading to making bitcoin’s global reserve currency and a standard billing unit. Only that, as the expert cited here, each stick has two ends.
The matter is much wider: the creation of the Bitcoin strategic reserve could have a domino effect, which would not be limited to cryptocurrency markets and have wide macroeconomic effects. Rafique in an interview with Cointelegraph noted that “the most serious macroeconomic effect would be the loss of trust in the dollar.”
Reason? The establishment of the Bitcoin reserve would signal to the world that the American dollar, which is the basis of the global economy, is weak and cannot maintain its value. This is not the US signal they want to send to investors who could run massively from USD towards other assets, such as gold or Swiss franc.
Investors would also get rid of risky assets, which would cause an avalanche of liquidation in financial markets, which would probably end in a serious crash, he summed up Rafique.
