As we move towards a digital future, Bitcoin is emerging as a new global reserve asset with significant implications for geopolitical power balances. This is the perspective put forward by David Bailey, a cryptocurrency policy aide for President-Elect Trump’s campaign and CEO of BTC Inc. Bailey believes that the rise of Bitcoin into global prominence, spurred on by Trump’s supportive stance on cryptocurrencies, will lead to a scramble for control of this prime asset amongst nation-states, sparking what he calls a ‘Bitcoin Space Race.’
In this new paradigm, the main competitors are expected to be the U.S. and China, with the latter taking up the mantle previously held by Russia. “Right now there’s two bitcoin superpowers, USA and China. There’s probably room for 2-3 more and that’s it,” Bailey stated on social media.
The U.S. currently sits at the top of the pile as the number one Bitcoin holder amongst nation-states, with just under 200,000 BTC in its possession. China, despite its known aversion to cryptocurrencies, follows closely behind with an estimated 190,000 BTC in its reserves. These holdings have primarily been seized from illegal operations involved in pyramid schemes or criminal activities that exploited cryptocurrencies for unlawful purposes.
Bailey postulates that there could be room for two to three more countries in this premier league of Bitcoin holding nations, presumably those able to maintain over seven figures in BTC. Beneath these elite few, Bailey anticipates a second tier of up to 30 countries that will rise to hold low six figures of Bitcoin. “The rest will never get past 5 figures of BTC. Bitcoin Space Race is on,” he declared with conviction.
It’s important to understand that Bailey’s analysis is founded on mathematical premises, and he emphasises that there are only two spots left for tier-one nations. He warns that any delay could render it impossible for additional states to join this exclusive group.
Back in November, Bailey urged U.S. authorities to create a strategic Bitcoin reserve as quickly as possible, warning of the danger of being outpaced by other nations with similar intentions. In this brave new world of digital currencies, it appears that the race is indeed on, and the stakes couldn’t be higher. The question now is, who will secure their place in the Bitcoin Space Race and what will be the implications for global power dynamics? Only time will tell.
