Critical Perspectives
Nic Carter argues against the Strategic Bitcoin Reserve concept, stating it would undermine rather than support the dollar. He contends that as the issuer of the global reserve currency, the US acquiring Bitcoin as a reserve asset would signal a loss of confidence in the dollar-based system. Carter suggests that such a move would cause market panic, spike interest rates, and trigger inflation. He also points out political challenges, noting that acquiring Bitcoin without Congressional approval would be undemocratic and likely undone by future administrations. Additionally, he argues Bitcoin has no strategic purpose comparable to other government reserves like oil or minerals, and that the initiative would be seen as a regressive wealth transfer to already wealthy Bitcoin holders.
Odell challenges the Strategic Bitcoin Reserve's foundation on seized assets as fundamentally contradicting Bitcoin's property rights principles. While proposing that seized bitcoin should be legally burned to deter government confiscation, he acknowledges a silver lining: the reserve signals Bitcoin's legitimacy and creates an aligned incentive structure benefiting both holders and the state. He warns against complacency and calls for continued vigilance in protecting the freedom to use Bitcoin without permission.