The Bitcoin Mirage: A Cautionary Tale
Bitcoin ($BTC) has long been heralded as the future of finance, a revolutionary store of value that would upend traditional banking and replace fiat currencies. And yet, despite its dramatic highs and lows, the one thing Bitcoin has never been is stable. As of this writing, Bitcoin sits at $83,607 per coin, but that figure is as fleeting as a mirage in the desert. Just recently, Bitcoin surged as high as $109,358 per coin before tumbling to $78,191 within the same month. That kind of extreme volatility is the hallmark of a speculative asset, not a reliable store of value.
The Flawed Store of Value
A true store of value is something that maintains its purchasing power over time. Gold has served this purpose for thousands of years, not because it can be traded on an exchange but because it possesses inherent value—scarcity, durability, and universal desirability. Bitcoin, on the other hand, has none of these qualities. It exists solely in the digital realm, dependent on electricity, networks, and miners who are constantly dumping coins onto the market to cover operational costs. The illusion that Bitcoin is “digital gold” falls apart under scrutiny—gold does not crash 80% in a year, nor does it double in price in a matter of weeks based on social media excitement.
Worse yet, Bitcoin remains a plaything of institutional investors and tech speculators. The moment the hype fades, the market plummets. Bitcoin does not provide stability; it breeds uncertainty. This is not the foundation upon which a nation should ever base its financial future.
The Trump Administration's Crypto Reserve Misstep
Reports have emerged that President Donald Trump is considering establishing a National Reserve for cryptocurrency, including Bitcoin, Ethereum ($ETH), Solana ($SOL), XRP ($XRP), and Cardano ($ADA). While Trump’s administration has historically taken a tough stance against central bank digital currencies (CBDCs)—rightfully so—this idea of a crypto reserve is deeply flawed.
To be clear: nothing could be more detrimental to a nation's financial security than anchoring its reserves to assets that have no inherent value. A currency reserve is meant to provide stability and confidence, backing the national economy with something solid. Crypto, by contrast, is built on speculation, prone to manipulation, and ultimately controlled by tech elites, exchanges, and shadowy whales who move markets with a single transaction.
The U.S. dollar, despite its flaws, is backed by the full faith and credit of the United States government. Gold, despite its controlled markets, is backed by centuries of historical precedent. Bitcoin is backed by… posts from Michael Saylor, whose @strategy is to hype Bitcoin to some level where he will offload his company's holdings and decimate anyone foolish enough to be holding at that time.
Final Thought
Bitcoin and its fellow crypto assets are not the future of sound money—they are the latest iteration of financial escapism. While blockchain technology may have utility in various industries, relying on crypto as a national reserve is an act of financial recklessness. A store of value must be tangible, enduring, and resistant to the kind of wild swings that define the crypto space.
National reserves must be based on assets that provide security, not speculative gambling chips. If Bitcoin were truly the future of finance, it would not need to be propped up by endless hype, celebrity endorsements, and desperate narratives of digital scarcity. The fact that Bitcoin is still being "debated" as a reliable store of value tells you everything you need to know—real stores of value don’t need debates. They stand the test of time.
Bill White Says...
"Bitcoin is like playing musical chairs on a sinking ship—except the chairs are imaginary, and Michael Saylor is the guy who already grabbed the last lifeboat."