On Thursday, President Donald Trump signed anexecutive orderauthorizing the creation of a strategic bitcoin reserve.
The reserve will hold bitcoin obtained by the US government through criminal or civil asset forfeiture proceedings.
A community note on his post pointed out he could have significant indirect holdings through Bitwise Asset Management.
Sacks refuted the claim, stating he exited his position with the exchange-traded fund on Jan. 22.
Bitcoin isn’t the only digital currency the government plans to stockpile.
Additionally, the order calls for a full audit of the government’s held digital assets.
Why is Trump creating a bitcoin reserve?
On the campaign trail, Trump promised to create a bitcoin reserve to store value.
However, gold has a much more stable value than bitcoin, which experiences considerable swings in price.
Bitcoincrossed the $100,000 markin early December, but remains volatile.
It reached $90,451 yesterday but has since dropped to $86,970.
What is the US Digital Currency Stockpile?
In addition to the bitcoin reserve, the executive order also creates a US Digital Currency Stockpile.
This is a separate reserve used for holding assets other than bitcoin.
Does this mean I should invest in crypto now?
In December 2022, bitcoin was valued at around $17,000.
Now, it’s at nearly $90,000.
There’s no guarantee when it comes toinvesting in crypto.
