Trump to Launch U.S. Crypto Reserve – Is Bitcoin the Future?

President Donald Trump plans to launch the first-ever presidential cryptocurrency summit on Friday at the White House, a historic step. The meeting takes place just one day after Trump announced a significant change in U.S. economic policy by signing an executive order to establish a Digital Asset Stockpile and a Strategic U.S. Crypto Reserve.

Trump stated his intention to establish the United States as the “Crypto Capital of the World” in a Truth Social post on Sunday. Among other valuable cryptocurrencies, the administration intends to maintain a range of top digital assets in reserve as part of this program, including Bitcoin, Ethereum, XRP, Solana, and Cardano. The market value of these digital assets skyrocketed after the announcement.

In a post on X (previously Twitter) on Thursday, White House crypto policy adviser David Sacks clarified that “The reserve will be funded using Bitcoin that has been seized by the federal government through civil or criminal asset forfeiture proceedings”.

The administration has no plans to sell the bitcoin placed in the reserve, in contrast to previous government-held Bitcoin that has usually been put up for auction. Rather, the Departments of Commerce and Treasury have been ordered to look for other ways to increase the U.S. Crypto Reserve without raising taxes on taxpayers.

The first and most well-known cryptocurrency in the world, Bitcoin, has long been at the center of debate in regulatory bodies, financial institutions, and Congress. However, even with its growing popularity, many Americans still don’t understand how it operates or why it will continue to influence digital banking in the future.

Trump’s latest move marks a pivotal moment for U.S. policy on cryptocurrency, setting the stage for broader discussions about the role of digital assets in the national economy.

What is Bitcoin?

Bitcoin is a form of digital currency and a virtual payment system that operates independently of any central authority. It allows users to send and receive digital tokens globally without the need for intermediaries.

One of the primary attractions of bitcoin is its independence from central banks and governmental control. Unlike traditional fiat currencies, such as the U.S. dollar, which can be printed at will by governments, bitcoin has a capped supply and is generated through computational processes.

The currency functions on a decentralized network of computers that record, verify, and update all transactions using a technology called blockchain. This technology serves as a public ledger designed to mitigate fraud. Bitcoin and the blockchain technology were introduced in 2009 by an individual or group under the pseudonym Satoshi Nakamoto.

Although bitcoin is characterized by significant price fluctuations, many investors have achieved substantial profits by timing their investments wisely.

As of Friday afternoon, the value of one bitcoin is approximately $87,000. It is common for individuals to own fractional shares of the currency, as noted by NerdWallet.

There are various methods to acquire bitcoin, including purchasing it through cryptocurrency exchanges, trading applications, or online brokerage services. Additionally, investors can buy bitcoin funds similarly to mutual funds or directly acquire the currency on platforms such as Cash App or PayPal.