Why Governments and Companies Hold Bitcoin Reserves
1. Hedge against inflation
Traditional currencies tend to lose value due to inflation. Bitcoin, however, has a predictable issuance rate and a limited supply (only 21 million coins will ever exist). This scarcity makes it an appealing hedge against inflation and a good store of value.
Introduction
Just like central banks store gold or foreign currencies, bitcoin is also considered by many a valuable asset to hold for the future. With the increasing adoption of digital assets, strategic reserves of bitcoin and other cryptocurrencies are becoming a common topic in finance and policymaking.
What Is a Strategic Bitcoin Reserve?
A strategic bitcoin reserve is a stash of bitcoin that organizations keep as part of their financial strategy. Strategic bitcoin reserves may vary from place to place, but they are often done due to one or more of the following reasons:
Hedge against inflation – Bitcoin has a fixed supply, meaning it can’t be printed like fiat currency, so it tends to hold purchasing power over time.
Diversification – Holding bitcoin adds another type of asset to a financial portfolio, which makes it a common alternative for diversification.
Store of value – Many consider bitcoin a good store of value because of its scarcity and durability. It’s also referred to as “digital gold”.
A strategic bitcoin reserve is a way for governments, businesses, and institutions to store bitcoin as part of their financial strategy.
Some consider such a reserve a hedge against inflation. Bitcoin has a fixed supply, so it tends to hold purchasing power over time.
Artificial intelligence (AI)
Artificial intelligence (AI) has been widely applied in our lives in recent years: business strategy planning, decision making, facial recognition, faster computing, and more. More recently, AI experts have been studying the possibilities of applying AI to the creation of immersive metaverses.
AI has the potential to process a lot of data at lightning speed. Combined with machine learning techniques, AI algorithms can learn from previous iterations, taking into account historical data to come up with unique outputs and insights.
Within the metaverse, AI can be applied to the non-player characters (NPCs) in different scenarios. NPCs exist in almost every game; they are a part of the gaming environment designed to react and respond to players’ actions. With AI’s processing abilities, NPCs can be placed across the 3D spaces to facilitate lifelike conversations with users or perform other specific tasks. Unlike a human user, an AI NPC can run on its own and be used by millions of players at the same time. It can also work in several different languages.
Another potential application for AI is in the creation of metaverse avatars. AI engines can be used to analyze 2D images or 3D scans to generate avatars that look more realistic and accurate. To make the process more dynamic, AI can also be used to create different facial expressions, hairstyles, clothes, and features to enhance the digital humans we create.
While trading strategies with moving averages can offer valuable insights into market action, their signals may be interpreted subjectively. To mitigate risks, traders often combine these strategies with fundamental analysis and other methods.
Do you find yourself staring at 1-minute charts? Do you like to get in and out of trades faster than an investor can open an earnings report? If yes, you might want to consider scalp trading.
Scalp traders aim to harvest profits from small price moves. Their goal isn’t to make huge returns with each trade but smaller profits over and over again. If they do it well, they’ll grow their trading account over time. But scalping is very risky, so traders often use tight stop-losses. Let’s take a closer look.
Trading strategies with moving averages can help traders gauge market momentum, analyze trends, and spot potential market reversals.
Some trading strategies with moving averages include the double moving average crossover, moving average ribbon, moving average envelopes, and MACD.
The Bitcoin price went from $0.30 in early 2011 to an all-time high of $111,980 in 2025 – an increase of more than 37,000,000% in less than 14 years.
From the 2020 low of $3,880 to its 2025 all-time high of $111,980, Bitcoin went up more than 2,700%.
Key Takeaways
Scalping (or scalp trading) is a short-term trading strategy focused on making quick profits from small price movements, often through dozens or even hundreds of trades a day.
Over time, these small wins can add up—especially when executed with precision and discipline. Success in scalping depends on fast execution, technical analysis, and access to real-time data.
Scalp trading strategies demand constant attention, mental stamina, and strict risk management. Less-experienced traders may benefit from testing their strategies through paper trading before risking real funds.
Key Takeaways
Since its creation in 2009, the Bitcoin journey has been volatile and often marked by price fluctuations in response to political, economic, and regulatory events.
The Bitcoin price went from $0.30 in early 2011 to an all-time high of $111,980 in 2025 – an increase of more than 37,000,000% in less than 14 years.
From the 2020 low of $3,880 to its 2025 all-time high of $111,980, Bitcoin went up more than 2,700%.
From 2011 to 2025, Bitcoin price had an annualized return of approximately 142% per year. As of June 10, 2025, Bitcoin’s market cap is roughly $2.18 trillion, and its crypto market dominance is around 64%.