President Donald Trump’s decision to establish a strategic Bitcoin reserve (SBR) has removed the “last existential risk” for the leading cryptocurrency, according to Bitwise CIO Matt Hougan.
He stated that the initiative makes the current moment “the best time in history” to purchase digital gold, considering the balance of risk and return.
Hougan noted that Bitcoin previously faced major threats from technological issues, lack of reliable infrastructure, and regulatory uncertainty.
However, over time, the asset has overcome these barriers with the launch of major exchanges, spot Bitcoin ETFs, and the emergence of institutional custodians.
The primary threat remained a potential government ban. But Trump’s signing of the order to create the SBR has eliminated this risk.
The document outlines the formation of a reserve comprising 103,500 BTC, with part sourced from confiscated assets. Authorities will develop strategies to replenish the reserve without additional taxpayer costs, such as through gold revaluation.
Hougan described digital gold as the best “backup plan.” He suggested that if the dollar ever comes under threat, betting on cryptocurrency is preferable to switching to, for instance, the Chinese yuan.
The expert noted that the share of digital assets in Bitwise clients’ portfolios has increased from 1% two years ago to 3%. Hougan predicts further growth of this figure “to 5% and beyond.”
Earlier, on March 7, the Bitwise CIO stated that the SBR would reduce the likelihood of a government ban on Bitcoin and make the cryptocurrency more legitimate in the eyes of investors and regulators.