Leaders in the Bitcoin space face increasing competition as they address reserve challenges
On March 20, investor and entrepreneur Anthony Pompliano remarked on Fox News, “There’s a global competition unfolding–Russia, Abu Dhabi, El Salvador, Bhutan–all these nations are striving to acquire Bitcoin… just as there was a space race, we now have a Bitcoin race.”
The notion of a Bitcoin “race” is becoming a reality as leaders around the world actively contemplate the pressing need to either build digital asset reserves or adopt cryptocurrency as legal tender.
In 2021, El Salvador became the first nation to recognize Bitcoin as legal tender, amassing over 2,000 Bitcoin as part of a national reserve aimed at enhancing financial inclusion and stimulating economic growth. This decision has sparked both praise and criticism, largely due to the unpredictable nature of Bitcoin’s value. Likewise, in 2022, the Central African Republic became the second country to embrace Bitcoin, perceiving the cryptocurrency as a pathway to boost economic development and financial inclusion in a nation grappling with extreme poverty.
The actions of both countries highlight the increasing interest in Bitcoin as an alternative financial approach. With a total supply capped at 21 million, most of which will be mined within a decade, the race for ownership is intensifying.
The prevailing theory posits that nations recognizing Bitcoin as a valuable reserve asset will aim to secure as much of the total supply as they can.
Advocates maintain that scarcity coupled with growing demand will elevate Bitcoin’s value, positioning major BTC holders as influential players in the market.
Insights from Saylor…
One of the leading proponents of Bitcoin, Michael Saylor, claimed that 78% of the U.S. was purchased for $40 million at some point. The former CEO of MicroStrategy referenced various territorial acquisitions, such as the Louisiana Purchase of 1803, to illustrate his point that the U.S. government should invest in Bitcoin now while it is “affordable.”
In a recent address, Saylor referred to the upcoming decade as “a digital gold rush” and likened Bitcoin to the Manhattan Project, branding it as “digital energy.”
“Currently, Bitcoin constitutes the digital capital network, wielding control over 99% of power within the cryptocurrency realm,” he stated. “The U.S. government recognizes only Bitcoin as a legitimate digital capital. To secure the future of cyberspace and sustain global financial leadership, America must strategically adopt Bitcoin. Only Bitcoin—and U.S. Treasuries—possess the liquidity and global trust necessary to function as dependable reserve assets worldwide.”
It is no surprise that Saylor has vocally supported government officials advocating for an increase in the U.S. Bitcoin stockpile.
President Donald Trump, Republican Senator Cynthia Lummis, and Bo Hines, the Executive Director of the President’s Council of Advisors on Digital Assets, have all indicated they would like to augment the U.S. Bitcoin reserves.
Similar to Saylor, Pompliano (one of the most outspoken crypto advocates in the U.S.) sees the Trump administration’s emphasis on Bitcoin dominance as significant.
Discussing Bitcoin’s future price, Pompliano stated during a Fox News segment that while he is uncertain when BTC will reach one million, he remains confident that, akin to gold, its value will rise from its current level.
Currently, Bitcoin is trading at just above $84,000.
“I believe people are significantly underestimating the fervor with which they will pursue Bitcoin,” Pompliano asserted. “Everyone thinks it’s charming that they have placed 200,000 Bitcoin over here and established this reserve — but they will keep acquiring more Bitcoin.”
Who is involved in the Bitcoin race?
Beyond the U.S., Pompliano identified Russia, El Salvador, Bhutan, and the United Arab Emirates as participants. Indeed, all of these nations reportedly hold Bitcoin, though not all have explicitly stated intentions to acquire more.
The extent of Russia’s cryptocurrency holdings remains somewhat unclear. However, it is known that the nation has significant mining operations and that local companies utilize crypto for international transactions, particularly to circumvent Western sanctions.
Pompliano did not mention several prominent Bitcoin holders, such as China, which ranks as the second-largest BTC owner after the U.S.
The United Kingdom and Ukraine follow China in Bitcoin holdings, according to BitBo’s Bitcoin Treasuries page.
Each of these countries adopts different strategies:
- North Korea’s hackers are known to have stolen hundreds of millions of dollars worth of crypto from exchanges.
- The UK holds crypto acquired during the dismantling of a major money-laundering ring.
- Ukraine became a notable Bitcoin holder thanks to donations received following the escalation of the conflict with Russia in 2022.
- The U.S. aims to seize Bitcoin and crypto assets linked to criminal cases, and many individual states are investigating the formation of local reserves.
In addition, some corporations, notably Strategy (formerly MicroStrategy) and asset manager BlackRock, rank among the world’s largest Bitcoin holders, easily competing with leading nations in Bitcoin dominance. Both firms own or manage around 500,000 Bitcoins (over 2% of the total supply), whereas no single country holds even half that amount as of March 2025.
Many countries are opting out
European nations are generally cautious yet innovative in their approaches to blockchain technologies. For example, Estonia is recognized as a pioneer in utilizing blockchain for electoral processes and healthcare data management. Nevertheless, EU countries take a reserved approach towards crypto reserves, primarily due to concerns over high volatility and low liquidity.
Similar concerns are echoed by nations like Switzerland, South Korea, Japan, and others that appear unconcerned by America’s enthusiasm for dominating the Bitcoin landscape. Germany even went so far as to sell off thousands of Bitcoin.
https://twitter.com/rovercrc/status/1854100904347132009
Crypto.news reached out to Genius Group, a company that uses Bitcoin as a corporate reserve, to inquire how they approach market timing.
“As fundamental believers in Bitcoin’s long-term potential, we don’t attempt to time the market; instead, we prefer to buy and hold with the intent of never selling,” a spokesperson replied.
If we accept the premise of a Bitcoin race, as Pompliano suggested, we must consider: Were the nations that lacked spacecraft or nuclear capabilities in the 20th century truly left behind?