DailySun
On March 20, investor and entrepreneur Anthony Pompliano stated on Fox News, “We are witnessing a global competition–Russia, Abu Dhabi, El Salvador, Bhutan–all these countries are striving to acquire Bitcoin… much like the historic space race, we now find ourselves in a Bitcoin race.”
The concept of a Bitcoin “race” is taking shape as leaders worldwide are increasingly faced with the urgent need to either build digital asset reserves or recognize cryptocurrency as legal tender.
In 2021, El Salvador made history as the first nation to adopt Bitcoin as legal tender, accumulating over 2,000 Bitcoin for a national reserve intended to promote financial inclusion and economic growth. This landmark decision has earned both accolades and criticism, largely due to the volatile nature of Bitcoin’s value. Similarly, in 2022, the Central African Republic became the second country to adopt Bitcoin, viewing the currency as a means to foster economic growth and improve financial inclusion in a country struggling with severe poverty.
Actions taken by these two nations underscore the growing interest in Bitcoin as a viable alternative financial solution. With a total supply limited to 21 million, most of which will be mined within the next decade, the competition for ownership is heating up.
The prevailing theory suggests that countries recognizing Bitcoin as a valuable reserve asset will strive to acquire as much of the total supply as possible.
Proponents argue that scarcity combined with rising demand will drive up Bitcoin’s value, establishing major BTC holders as key influencers in the market.
Insights from Saylor…
Michael Saylor, a prominent advocate for Bitcoin, claimed that at one time, 78% of the U.S. land was acquired for a mere $40 million. The former CEO of MicroStrategy used historical territorial acquisitions, such as the Louisiana Purchase in 1803, to emphasize that the U.S. government ought to invest in Bitcoin while it remains “affordable.”
In a recent speech, Saylor referred to the next decade as “a digital gold rush” and compared Bitcoin to the Manhattan Project, referring to it as “digital energy.”
“Currently, Bitcoin is the backbone of the digital capital network, commanding over 99% of influence within the cryptocurrency market,” he asserted. “The U.S. government acknowledges only Bitcoin as a legitimate form of digital capital. To ensure the future of cyberspace and maintain global financial leadership, America must strategically embrace Bitcoin. Bitcoin—and U.S. Treasuries—are the only assets with the liquidity and global trust essential to serve as reliable reserve assets worldwide.”
Thus, Saylor has actively supported government officials advocating for an expanded U.S. Bitcoin reserve.
Notable figures such as President Donald Trump, Republican Senator Cynthia Lummis, and Bo Hines, Executive Director of the President’s Council of Advisors on Digital Assets, have expressed interest in increasing the U.S. Bitcoin reserves.
Like Saylor, Pompliano (one of the most vocal crypto advocates in the U.S.) considers the Trump administration’s focus on Bitcoin dominance to be significant.
During a Fox News segment discussing Bitcoin’s future price, Pompliano expressed uncertainty regarding when BTC would hit one million but remained confident that its value, similar to gold, would rise from current levels.
At the moment, Bitcoin is trading just above $84,000.
“I believe people are greatly underestimating the passion with which they will pursue Bitcoin,” Pompliano emphasized. “Many think it’s quaint that they have stored 200,000 Bitcoin and created this reserve — but they will continue to acquire more Bitcoin.”
Who is involved in the Bitcoin race?
Beyond the U.S., Pompliano pointed to Russia, El Salvador, Bhutan, and the United Arab Emirates as participants. Indeed, all of these countries are reported to hold Bitcoin, although not all have publicly announced intentions to pursue more.
The specifics of Russia’s cryptocurrency holdings remain somewhat murky. However, it is known that the nation runs significant mining operations and that local firms use crypto for international transactions, especially to evade Western sanctions.
Pompliano did not mention several notable Bitcoin holders, including China, which ranks as the second-largest BTC holder after the U.S.
The United Kingdom and Ukraine follow China in terms of Bitcoin holdings, according to BitBo’s Bitcoin Treasuries page.
Each of these countries has adopted different strategies:
- North Korea’s hackers are notorious for stealing hundreds of millions of dollars in cryptocurrency from exchanges.
- The UK holds crypto seized during the shutdown of a major money-laundering operation.
- Ukraine became a notable holder of Bitcoin due to donations received in response to the 2022 conflict escalation with Russia.
- The U.S. aims to confiscate Bitcoin and cryptocurrency assets linked to criminal investigations, and many states are exploring the establishment of local reserves.
Additionally, some corporations, specifically Strategy (previously MicroStrategy) and asset manager BlackRock, rank among the world’s largest Bitcoin holders, easily competing with leading nations in Bitcoin ownership. Both firms manage or hold around 500,000 Bitcoins (over 2% of the total supply), while no single nation holds even half that amount as of March 2025.
Many countries are opting out
European nations typically adopt a cautious yet innovative stance toward blockchain technologies. For instance, Estonia is celebrated for being a pioneer in utilizing blockchain for elections and healthcare data management. Nonetheless, EU countries generally maintain a reserved approach to cryptocurrency reserves, primarily due to concerns about high volatility and low liquidity.
Similar apprehensions are echoed by countries like Switzerland, South Korea, Japan, and others that seem unfazed by America’s enthusiasm for dominating the Bitcoin arena. Germany even went as far as to divest thousands of Bitcoins.
Germany sold all their #Bitcoin at $54,000.
If they had waited, they could have made an extra $990 million.
Losers🤣🫵 pic.twitter.com/2G8iRFhzn9
— Crypto Rover (@rovercrc) November 6, 2024
Crypto.news reached out to Genius Group, a firm utilizing Bitcoin as a corporate reserve, to ask about its market timing approach.
“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 intention of never selling,” a spokesperson responded.
If we accept the idea of a Bitcoin race, as suggested by Pompliano, we must ask: Were the nations lacking spacecraft or nuclear capabilities in the 20th century truly left behind?
