While Donald Trump’s proposal for a strategic cryptocurrency reserve initially sent prices soaring, industry heavyweights aren’t exactly breaking out the champagne.
Bitcoin maximalists, in particular, have some choice words about Trump’s multicoin approach. Samson Mow bluntly labeled it a “sh*tcoin reserve,” suggesting the selection merely enriches specific projects. Adam Back went further, mockingly sharing a “strategic shitcoin reserve” meme. Ouch.
Even Coinbase CEO Brian Armstrong couldn’t fully endorse the plan. “Just bitcoin would probably be the best option,” he stated, advocating for a simpler approach focused on Bitcoin as the digital successor to gold. His surprise at the inclusion of alternative cryptocurrencies was evident.
Meanwhile, gold bug Peter Schiff used the announcement to take another swing at Bitcoin. He called the whole thing “BS” and suggested Trump’s post was just market manipulation to prevent a Bitcoin selloff. Nothing special about Bitcoin, according to Schiff. He also couldn’t resist pointing out the irony of Trump’s own coin being excluded from the reserve.
The market initially loved it, though. Bitcoin jumped to $95,000, while altcoins like XRP, Solana, and Cardano saw massive spikes.
Reality check: prices fell back to pre-announcement levels by Monday afternoon. So much for sustainable gains.
Some advocates see potential benefits—diversification of government holdings, legitimization of cryptocurrencies, and a hedge against financial risks. Critics aren’t convinced. They point to crypto’s notorious volatility and question how lesser-known coins could possibly serve as reserve assets.
The announcement conveniently preceded a White House “Crypto Summit” with industry leaders. Trump positioned himself as a defender against what he perceives as smart contract vulnerabilities that could threaten the integrity of any government-backed reserve. Smart political play? Maybe.
Pierre Rochard offered a different perspective, predicting the reserve will eventually become Bitcoin-only over time as altcoins depreciate against Bitcoin’s value.
The lack of details is glaring. How much of each coin? When? How? Nobody knows.
For now, crypto leaders are left wondering if this is a game-changing financial strategy or just another Trump market pump.
Corporate treasurers watching these developments must evaluate whether Trump’s strategy aligns with growing treasury management trends where companies like MicroStrategy have incorporated Bitcoin as reserves to hedge against inflation.
