Why Governments Are Targeting Bitcoin

A new race is heating up in the world, and this time the target is not gold or oil, but Bitcoin. Governments are actively seeking to accumulate the first cryptocurrency, seeing it as an important strategic asset. This trend is supported by macroeconomic instability and the election of the pro-cryptocurrency US President, Donald Trump.

The problem of depreciation of traditional currencies is forcing governments to look for ways to protect their assets. Since 2020, Americans have lost about 25% of the dollar’s purchasing power and this only increases interest in digital assets that are not subject to inflation. This is confirmed by the example of Bhutan and El Salvador, which are already betting on cryptocurrency, using their advantage as relatively small players in the geopolitical arena.

National debt problems are also fueling interest in Bitcoin. Over the past 90 days, the US debt has grown by $850 billion, even if these funds were invested in Bitcoin, this would amount to about half of its market capitalization. In terms of government spending, this is a drop in the bucket, but for the economy it could be a serious step towards crypto-protection.

It is not only other countries that are showing interest in Bitcoin. Within the United States itself, interest in including cryptocurrency in strategic reserves is growing. Jimmy Patronis, the chief financial officer of Florida has proposed adding Bitcoin to the state pension fund portfolio. In Pennsylvania, a bill on a strategic Bitcoin reserve is being discussed, which would allow the state treasury to invest up to 10% of its assets in cryptocurrency.

The interest of government agencies in Bitcoin shows that the attitude towards digital assets is changing dramatically. Bitcoin is turning from a “rebellious” investment into a strategic tool for protecting assets and strengthening positions in a rapidly changing economic world.

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