Through a post on X, CryptoQuant CEO Ki Young Ju has said he dislikes the notion that the incoming US administration is considering other coins in its proposed Bitcoin strategic reserve holdings. He urges the US government to limit its digital asset reserve to only BTC. “I’m not Bitcoin maxi, but the U.S. strategic shitcoin reserve has gone too far. Just Bitcoin, please,” Ju wrote today, in what appeared to be a dig at unconfirmed reports on President-elect Donald Trump’s “receptiveness” to add XRP to the federal reserve idea. During the latter days of December 2024, Ju admitted that he was in support of the “Bitcoin Standard idea,” although he doubted the practicality of the US government adopting a crypto reserve under the Trump administration. “ For the debate to gain serious momentum, the US would need to see its global economic dominance genuinely threatened ,” he noted. Bitcoin vs. altcoins: Is Bitcoin the only viable option? Ju has been a strong critic of altcoins’ performance. He even called memecoins “harmful” to the crypto industry. “ Altcoin markets are currently a zero-sum PvP game. While Bitcoin has doubled its market cap, the alt market cap is still below its previous ATH, rotating among themselves without fresh capital inflows. Only a few alts with strong use cases and narratives will survive ,” said the CryptoQuant CEO in a January 9 post on X. Ju argued that altcoins lack the stability and universal appeal of Bitcoin, making them unsuitable for a government reserve. He also explained that a Strategic Bitcoin Reserve (SBR) is a more feasible option to offset US debt than altcoins or traditional assets like gold. Last year, as reported by Reuters, Senator Cynthia Lummis forwarded a bill dubbed “BITCOIN Act of 2024,” which proposes that the US Treasury acquire 1 million Bitcoin over five years, which equates to annual purchases of 200,000 Bitcoin. Lummis argued that the plan could reduce US debt by half within 20 years while protecting citizens against inflation and strengthening the dollar’s position globally. According to CryptoQuant’s analysis, 70% of US debt is held locally. Taking up the strategy of acquiring 1 million Bitcoin by 2050 would have paid up approximately 36% of the debt by then. Strategic #Bitcoin Reserves to offset U.S. debt is a feasible approach. Over the past 15 years, $790 billion in realized capital inflows have propelled Bitcoin’s market cap to $2 trillion. This year alone, $352 billion in inflows have added $1 trillion to its market cap.… https://t.co/E2sorulSii pic.twitter.com/Xg1SR9ixqB — Ki Young Ju (@ki_young_ju) December 21, 2024 However, CEO Ju warned that since Bitcoin is not acknowledged globally as much as Gold, using the crypto to clear public debt could be treading a tricky road. He said: “ Using a pumpable asset like Bitcoin to offset dollar-denominated debt could make gaining creditors’ consensus challenging. ” Federal Reserve and legislature oppose crypto reserve policy In late December, Federal Reserve Chair Jerome Powell insisted that the central bank has no jurisdiction or plans to hold Bitcoin. “ We’re not allowed to own Bitcoin, ” Powell said, “ That’s the kind of thing for Congress to consider, but we are not looking for a law change at the Fed. ” Supporting Powell’s sentiments, former Treasury Secretary Larry Summers dismissed the idea that a national Bitcoin reserve is a politically motivated move made by Trump. Speaking to Bloomberg in December, Summers alleged the proposal was meant to cater to special-interest groups within Trump’s campaign. “ Some of what is being said—that we should have some kind of national Bitcoin reserve, is crazy, ” he remarked. “ There’s no reason to do that other than to pander to generous special-interest campaign contributors. ” From Zero to Web3 Pro: Your 90-Day Career Launch Plan
