Experts Say Trump's Cryptocurrency Reserves Are 'Unreasonable' and 'Chaotic'

Bitcoin players reacted disappointingly to Donald Trump's strategic cryptocurrency reserve - one person described Sunday's announcement as 'smelling of incompetence'. The president has confirmed that altcoins including XRP, SOL, and ADA will be included in this reserve, while BTC and ETH are considered secondary by Truth Social. Critics argue that such smaller cryptocurrencies are highly centralized - and should not be included. Podcast host Peter McCormack said these unexpected posts are "disappointing but not surprising," he said: The strategic reserve of Bitcoin is a rational move — Bitcoin is a hard asset, and its long-term price appreciation may help offset national debts or serve as a financial support measure. Instead, the decision to hold a mix of known scams and low-quality assets along with Bitcoin smells of incompetence in appointing and maneuvering successfully from people like Ripple. McCormack continues to argue that David Sacks is "always the wrong choice" for the White House's cryptocurrency expert position and declares that "he doesn't really understand Bitcoin and why there is no other cryptocurrency with long-term value to preserve assets". “Bitcoin should be the only asset in the strategic reserve of the US government because it is the only truly decentralized, scarce, and resistant-to-manipulation digital asset — qualities that make it the best form of money in the world.” He noted that no other cryptocurrency offers the same level of immutability, transparency, and long-term price potential — and that exposure to 'centralized or unproven alternative solutions' would be less effective in strengthening the financial security of the United States. However, McCormack believes that Donald Trump himself is not closely involved in providing details in this announcement — and argues that the president's advisors should bear more responsibility. "Expecting Trump to grasp Bitcoin and cryptocurrencies as deeply as those who have spent years studying the intersection of currency and economy is unrealistic. The real failure lies with his advisors - either they have not done the necessary work to understand the unique characteristics of Bitcoin, or they have fallen into the hands of lobbyists like Brad Garlinghouse, promoting inferior centralized alternatives." Although this may not be the policy that everyone expects, McCormack believes it will be good for the price of Bitcoin regardless, as it adds more supply pressure and "signals to other countries that this is an asset that needs to be taken seriously". On X, Euler Labs co-founder Michael Bentley also sharply criticized this policy and said this reserve will resemble the "2017 investment portfolio of a retail trader". The likelihood is that this will be abandoned when it is clear that U.S. taxpayers are just liquidity for ADA holders. Bitcoin will be tarnished in the same way, making it a long-term negative policy. There is no possibility that other governments will copy this transaction. Bad policy. A big mess.

'It Doesn't Mean Anything' Danny Scott is the CEO of the only Bitcoin exchange CoinCorner, and told Cryptonews that this is "hilarious" — especially as financial institutions and investors trading through exchange-traded funds will not be able to react to this news. “The announcement in two messy tweets on Sunday morning was crazy. I understand that our world today is heavily dominated and influenced by social media, but it's like a very unprofessional, almost instinctive response to the cryptocurrency market going through an adjustment - and Trump doesn't want it to reflect poorly on himself.” Scott also added that "no country wants to hold something that can be completely controlled by a single entity, especially an entity overseas" — and believes that this approach to strategic reserves will not be followed. Can you imagine Russia or China buying XRP ( controlled entirely by the US Ripple company as a strategic reserve? The US imposes sanctions and they can completely freeze China or Russia's access to their XRP. Countries around the world will want a currency that cannot be influenced or controlled by other countries, which has never been a feasible option before Bitcoin. Despite the shortcomings of this reserve, he also believes that "it still has great potential for Bitcoin" — as other countries may decide to use only BTC or include "some additional suitable or controlled cryptocurrencies for their benefit". But I believe that over time, as we have seen, all altcoins tend to decrease to 0 compared to Bitcoin — and the final countries will realize that gradually switching to reserves only for Bitcoin in the long term.