Trump’s Bitcoin Reserve Shouldn’t Include Altcoins: Bitwise
On March 2, US President Donald Trump announced the formation of a Crypto Strategic Reserve, which will include Bitcoin, Ethereum, XRP, Solana, and Cardano. This initiative aims to weave these digital assets into the country’s economic and monetary framework. In the wake of this announcement, the cryptocurrency market reacted strongly, with significant price surges seen across various assets, driven by a blend of investor enthusiasm and speculation.
However, the decision to incorporate a mix of altcoins alongside Bitcoin has sparked considerable debate among financial experts and industry leaders. A key point of contention is the potential implications of such a broad inclusion of cryptocurrencies, particularly those with varying degrees of regulatory and technological stability.
Criticism surfaced quickly from Jeff Park, Head of Alpha Strategies at Bitwise. He remarked that Trump’s strategy could be seen as “a huge political miscalculation,” cautioning about the possible perception of insider dealings. Park underscored Bitcoin’s distinct position as the primary digital store of value, arguing against including cryptocurrencies whose legitimacy may not be universally recognized. He warned of the risks political optics may present, especially if the inclusion of various altcoins inadvertently suggests conflicts of interest.
Park elaborated, stating, “Huge political miscalculation by Trump in underestimating just how crucial it was for the Strategic Reserve to focus solely on Bitcoin. Sad! Political opportunities are calculated by marginal wins of new votes vs loss of old votes…” His concerns centered on potential voter backlash, likening the situation to previous political blunders that left existing supporters alienated while failing to attract new ones.
Hunter Horsley, CEO of Bitwise, echoed Park’s sentiments, expressing surprise at the administration’s decision to include altcoins. He stated that he initially envisioned a Crypto Strategic Reserve focused solely on Bitcoin, portraying it as “the undisputed store of value for the digital age.” Though acknowledging the White House’s positive move towards recognizing cryptocurrencies, he emphasized that the concept of a “reserve” typically indicates stability and global acceptance—characteristics more aligned with Bitcoin than with newer alternatives.
Horsley articulated, “We’re talking about a reserve, and BTC is the undisputed store of value for the digital age.” He expressed hope for further clarification regarding the administration’s rationale for including altcoins.
Additionally, prominent figures in the cryptocurrency realm, who do not necessarily identify as “Bitcoin maximalists,” echoed similar views. Brian Armstrong, CEO of Coinbase, suggested that a focus on Bitcoin would present a clearer narrative as the successor to gold. He proposed that if a broader range was desired, a market-cap-weighted index of cryptocurrencies could be developed for a more balanced representation.
From a philosophical perspective, David Marcus, CEO and co-founder of Lightspark, cautioned against conflating Bitcoin with assets governed by human control. He asserted, “Mixing the only code-driven asset with human-run ones is a mistake,” highlighting the importance of Bitcoin’s decentralized framework in discussions around reserve assets.
Interestingly, Peter Schiff, a longstanding skeptic of Bitcoin, offered a partial endorsement, likening Bitcoin to “digital gold” but questioning the necessity of including altcoins such as XRP. “What’s the rationale for an XRP reserve? Why the hell would we need that?” he inquired.
In response to the announcement, Bitcoin’s price has surged, and at press time, it was trading at $91,022. The market appears to be in flux, with ongoing discussions likely continuing as the implications of Trump’s Crypto Strategic Reserve unfold.
