Bitcoin favored for US crypto reserve at $84,016

Coinbase CEO Brian Armstrong and Gemini CEO Tyler Winklevoss have expressed support for a Bitcoin-only (CRYPTO:BTC) U.S. crypto reserve, citing Bitcoin as the clear "successor to gold" and the most suitable asset for such a role.

This stance comes after President Donald Trump announced plans for a Crypto Strategic Reserve that includes Bitcoin, Ethereum (CRYPTO:ETH), Solana (CRYPTO:SOL), Cardano (CRYPTO:ADA), and XRP (CRYPTO:XRP).

Winklevoss emphasised that while other cryptocurrencies meet Gemini's listing criteria, they do not meet the standards for a strategic reserve, which requires assets to be "hard money" and proven stores of value like gold.

Armstrong suggested that if the U.S. opts for a diverse reserve, a market cap-weighted index could be used to avoid bias.

Cameron Winklevoss also suggested that Ethereum might qualify as a store of value asset, likening it to "digital oil" alongside Bitcoin as "digital gold."

Meanwhile, Samson Mow advocated for only proof-of-work assets like Bitcoin and Litecoin in the reserve, citing concerns about the security of proof-of-stake assets.

The concept of a U.S. crypto strategic reserve is gaining traction, with proponents arguing it could enhance the legitimacy of cryptocurrencies and support the U.S. dollar.

However, critics raise concerns about the volatility and risks associated with holding cryptocurrencies as reserve assets.

The upcoming White House Crypto Summit on March 7 will address these issues and discuss regulatory policies, further shaping the future of cryptocurrency in the U.S.

As the debate continues, the inclusion of Bitcoin in any reserve is seen as a significant step towards mainstream acceptance, given its established role as a store of value.

The potential benefits of a Bitcoin reserve include long-term financial stability and the ability to audit assets transparently on the blockchain.

However, managing such a reserve poses challenges, including mitigating the risks of price volatility.

At the time of reporting, the Bitcoin (BTC) price was $83,693.80.