There's a lot of talk happening as of late out of the government that's becoming a hot button topic once again and that's the USA building a strategic crypto reserve. Will this reserve really matter to the overall crypto economy or have the pieces already fallen into place?

How will the government obtain this crypto?

Let's deep dive into this...

Crypto Reserve

Trumps most recent announcement came just a few days ago about what the government would be stocking up on aka tokens wise. Before it was thought that maybe it would just be Bitcoin however we now have a rather large list of assets the government will be stock piling.

Those announced are XRP, SOL, ADA and of course the famous line that we are making America great again and the crypto capital of the world.

Now before I thought that the government was just going to take any crypto they get from enforcement law actions and just hold on to the assets and that might still be the case. In that case however they government most likely holds at least a little bit of pretty much EVERY cryptocurrency by now even Pepe!

This reserve is suppose to also be assets in which the government gets and holds for a long period of time. There's many of these reserves the government currently has such as...

• SPR (Strategic Petroleum Reserve)
• CCC (Food & Agricultural Reserve)
• SNS (Medical and Health Reserve)
• Gold reserves
• Foreign Exchange Reserves
• Federal Helium Reserve
• REE (Rare Earth Elements)
• Water Reservers
  and the list keeps going on.

These are reserves that are put into place to absorb shocks and build value in the country.

Now what comes next if the government starts to do it?

State Level

We are already seeing states and have seen states build crypto reserves themselves. This ushers in a green flag that it's time to stock up even on the state level further locking up crypto assets reducing the supply of these crypto assets which should drive up the price based on basic supply and demand theory.

States gain power by having reserves of their own and actully have more power (or should have more power) over the government which is a HUGE benefit in terms of freedoms.

Other Countries

Most likely we will also see other countries follow up in order to get their share of the pie. This would further restrict the supply and increase the demand in at least the short term but the speed at which is happens should be enough to seriously drive FOMO and really get things to moon shot.

This is that theory that many people talk about where they predict a $500,000 or 1 million dollar plus per bitcoin scenario and well honestly it could happen. But it could end up flopping and demand for the token goes way down.

Time

The thing to note here as well is that even though Trumps been saying he's going to push an executive order to build this core asset called for the USA he himself does not have the power to actully make it start happening. Something on this level has to get congressional approval and it very well might being that a majority of the seats belong to his party.

Now there's still a lot of back and forth talk about what the reserve will actully hold.

Some are focused on a bitcoin only
Others are focused on a bitcoin and Ethereum
Others are a basket of various researched cryptos
and Others still are more on the lines of some type of index fund that's spread across many cryptos kind of like how Coinbase has a index fund of cryptos.

What one do you think is the best and also the one to actully pass?