Nick Carter: 7 Reasons Why the US Crypto Reserve Strategy Will Cause Market Disruption

According to CoinDesk, Nic Carter, a partner at Castle Island Ventures, has summarized 7 reasons why the US cryptocurrency reserve asset strategy could have a negative impact on the market: 1. Requires Congressional Approval - If the US government wants to continue holding BTC, Trump must obtain Congressional approval. If the Trump administration decides to purchase BTC unilaterally, the next government may overturn this policy, causing market turmoil. 2. Disruption of the Dollar and Treasury Markets - As the issuer of the global reserve currency (USD), the adoption of cryptocurrency reserves as a complement to the dollar could shock the existing financial markets. 3. Reduced Need for the US Government to Hold More BTC - The US is already the world's largest BTC holder. Additionally, as BTC rises, investors will have to pay 20-40% of their realized gains in taxes, reducing the effectiveness of additional reserve adoption. 4. Lack of Strategic Use for Cryptocurrency Reserves - Cryptocurrency reserves are not essential to maintaining the quality of life for Americans, and the government lacks a clear strategic plan for their utilization. 5. Potential Dilution of BTC's Value - If the cryptocurrency reserves include a variety of assets such as ETH, ADA, SOL, and XRP, it could dilute the decentralized system and value of BTC. 6. Concerns about Compromising BTC's Independence from Government - The adoption of cryptocurrency reserves could turn BTC into a political tool of the government. 7. Potential Social Backlash - Currently, only 5-20% of Americans own BTC, and if Trump's pro-cryptocurrency policies make BTC holders wealthier, some segments of the population may develop resentment towards cryptocurrency investors.