Opinion: U.S. Strategic Bitcoin Reserve Will Trigger Global 'Bitcoin Arms Race'

On March 8th, Matt Hougan, the Chief Investment Officer of Bitwise, stated that the United States is gradually moving towards setting up a Strategic Bitcoin Reserve (SBR), which will prompt countries around the world to rush to purchase Bitcoin. Hougan indicated that regardless of the form this reserve finally takes, it will show that Bitcoin has become a "globally significant monetary asset." "This seems to me like a game-changer," he said. He believes that the establishment of a Bitcoin reserve by the United States will mark the opening shot of a "Bitcoin arms race." "If you are Honduras, Mexico, or Guatemala, and you see El Salvador and now the United States amassing Bitcoin, can you really afford to keep holding zero Bitcoin?" asked Hougan. "If you are Dubai, Qatar, or Saudi Arabia, can you just sit by as Abu Dhabi and the United States take the lead?" Due to Bitcoin's limited supply, this envisioned global buying spree by Hougan may drive up the price of Bitcoin. Hougan predicts that the US move to establish Bitcoin as a reserve asset will trigger global competition among countries in this field.