Bitcoin OG Nic Carter lists eight reasons why establishing a Crypto Assets reserve in the United States is a bad idea

Former US President Trump recently proposed the establishment of a 'Crypto Reserve,' planning to hold BTC and other types of Crypto Assets as a national reserve. However, Nic Carter, a partner at Castle Island Ventures, holds a contrary view, believing that the plan is not only unhelpful for BTC but also will have a negative impact on the US economy and the Crypto Asset market.

Carter listed eight major reasons for opposition in the analysis, pointing out that this policy is short-sighted and may lead to market chaos, even undermining the value proposition of BTC.

(Trump: Pushing encryption asset reserves by executive order, related assets surged more than 75%, naming BTC, ETH, SOL, XRP, ADA)

1. Short-term decisions are easily overturned

Carter pointed out that if Trump bypasses Congress and establishes an encryption reserve solely by executive order, the next government can easily overturn this decision and quickly sell off assets, causing serious market impact. If BTC supporters truly want the US government to hold BTC for the long term, they should push for Congress to pass legislation, rather than relying on the president's unilateral decision.

2. Challenge the dollar system, market instability

As the issuer of the global reserve currency, the United States, if it establishes a Cryptocurrency reserve, may be interpreted by the market as a lack of confidence in the US government towards the US dollar, leading to market turmoil, rising interest rates, and even concerns about default on US national debt. Carter believes that the United States should prioritize economic growth and fiscal reform rather than challenging the current monetary system, as this would be counterproductive.

3. The United States already holds a high amount of BTC

US investors and funds hold far more BTC than any other country, and the government has earned a significant amount of tax revenue from the rise in BTC prices. Therefore, Carter believes that the US does not need to buy additional BTC, as it has already benefited indirectly, and there is no need to get involved in the market by holding it directly.

4. Lack of 'strategic reserve' value

Carter proposed that the government usually reserves energy, medical supplies, strategic metals, or foreign exchange, which may not be available in emergencies, so they must be reserved in advance. However, BTC is different from these assets. The United States will not 'lack' BTC in a crisis, so its strategic reserve significance is questionable.

5. Mix multiple Crypto Assets to weaken the value of BTC

The project involves not only Bitcoin (BTC) but also Ethereum (ETH), Cardano (ADA), Solana (SOL), and XRP, which may confuse the status of BTC and other competing currencies, weakening its uniqueness as 'digital gold.' Carter believes that to promote national-level encryption reserves, it should be 'only holding BTC, or simply not holding it.'

6. Bitcoin does not need government support

Carter emphasizes that Bitcoin, born in 2009, has grown from zero to trillions of dollars in market value to date, relying entirely on market demand rather than government support. He questions that the early decentralized BTC community now supports government intervention in the market, which goes against the principles of BTC.

7. May cause public outrage in the United States

Currently, only 5% to 20% of Americans own BTC, while even fewer people own other Crypto Assets. Carter believes that if the government spends taxpayer money to purchase Cryptocurrency, it will trigger social backlash, making the general public feel that the government is helping a small group of BTC billionaires rather than improving the overall economic situation.

8. The policy has a personal interest color of Trump.

Carter bluntly pointed out that Trump and his cabinet members have direct interests in multiple Cryptocurrency projects. For example, Trump has launched an NFT project and is associated with several meme coins based on Solana. He questioned whether this policy is truly based on national interests or if Trump is using government resources to boost the value of his own assets.

The policy may backfire and be detrimental to the encryption market in the long run.

Carter's final warning, Trump's encryption reserve plan may ultimately harm the overall market interests. If the new government considers the plan an abuse of power, it may completely reverse the current encryption-friendly policy, tightening the regulatory environment in the United States again, which would be a disaster for Bitcoin and the encryption industry.

He emphasized that what the market needs is not for the government to directly hold Crypto Assets, but clear and reasonable regulatory policies that allow businesses and investors to develop in a stable environment.

In this article, BTC OG Nic Carter lists eight reasons why the establishment of a Cryptocurrency reserve in the United States is a bad idea, first appeared on Chain News ABMedia.