Bitcoin and sovereign wealth funds

Donald Trump, President of the United States signed A government executive has issued an order creating a sovereign-wealth fund. The media is speculating whether or not the US government will invest in cryptoLet’s look at Bitcoin in a wider context.BTC).

What is the origin of Bitcoin trends?

Bitcoin has risen from a low of $0, to an historic high price of $110,000 in the past 17 years. But its rise was not linear. You needed five BTC in 2010 to buy a Bitcoin. just to buy a pizza. Dawn of the notorious Silk Road In 2011, the collapse of marketplace contributed to a spike in prices. After the US government shut down the marketplace and the US Senate’s subsequent hearing, Bitcoin prices unexpectedly soared from several hundreds of dollars to more than $1200 each coin.

After the launch of Ethereum, the altcoin market exploded.ETHThe initial coin offerings boom ended in 2017 and in 2016. Bitcoin reached an incredible high of $20,000 during this period. After its first crypto winter of 2017–2018, Bitcoin gradually rebounded. Decentralized finance, non-fungible coins and innovative projects injected new energy to the market. Although Bitcoin itself was not the driving force behind DeFi—Ethereum’s smart contracts took that role—Bitcoin remained the main gateway for crypto investments, with its “wrapped” Versions will be available on automated exchanges, decentralized exchanges from 2018 until 2020. NFTs accompanied Bitcoin’s rise. COVID-19 struck and, after a small rollback of the COVID-19 regulations, governments around the globe spewed out freshly-printed money for their citizens. The result was a second wave of investor enthusiasm.

As it seemed that trends were slowing down, institutional investors entered into the picture. Bitcoin was adopted by traditional financial institutions around 2022. This led to the launch of exchange traded funds, which reached their peak popularity in 2024-2025. The exchange-traded funds opened up Bitcoin to retail investors as well as institutional ones, and consolidated its status. “digital gold.”

National wealth funds

It’s important to consider what will happen in the event that rumors about direct US government crypto investment through recently created Sovereign Wealth Funds become true. 

The United States will set an example for all other nations. The next two or five years could be shaped by this trend, which may send Bitcoin prices soaring. However, there’s a catch. The shortsightedness of even the biggest financial companies can be a problem.

What is driving Bitcoin value?

Bitcoin was never fully adopted as currency. “electronic cash” Satoshi’s vision of the future white paper. Silk Road’s golden age of real-world trades may have occurred during this period. It is still the most popular option for illicit trades around the world. In legitimate markets, Bitcoin functions primarily as a store of value—a speculative asset traded by investors with little regard for its original utility.

National investments could be the next big step in its evolution. BTC is already owned by many governments, and often in large amounts. seized From criminal enterprises. Treasury departments that wait too long may lose out on large profits. However, early adopters like El Salvador will likely enjoy greater rewards. The Bitcoin investor base has grown with each trend, but who could top the institutional investors, national treasuries and superannuation plans (that have yet to begin)? Eventually, you run out of buyers on Earth—there’s certainly no one on the Moon to continue the trend once Bitcoin gets there.

It is shortsighted, therefore, to assume that Bitcoin will be sustained by its speculative values indefinitely. The people who can shape Bitcoin’s future, and use it beyond speculation, do not show signs that they have a long-term view. They will leave quietly before the market turns down, according to my prediction.

Sustainable Alternative Future

Bitcoin is often questioned, but this skepticism usually stems from flawed assumptions. Bitcoin is neither centralized nor vulnerable: it has operated as a publicly accessible ledger for over 17 years without major disruptions—an unparalleled feat.

When national treasuries acknowledge Bitcoin’s strength, they could create a path for previously overlooked applications. Bitcoin could evolve into an application platform that is similar to Ethereum. Although some engineers argue this, their skepticism is due to a lack in depth expertise in the area.

Imagine using Bitcoin blockchain as a national land register, a decentralized system to replace ICANN’s TLDs, or a voting system in democratic countries. Bitcoin’s higher fees could be justified by its unprecedented security—particularly for mission-critical public and private systems that handle valuable assets. Bitcoin may not be the best choice for speculative projects or experiments, but it is for situations where security and reliability are more important than cost.

The conclusion of the article is:

The development of smart contracts, dApps on Bitcoin and the use of dApps has been something I’ve advocated since the early days (and am heavily involved in this). technical sideIts high costs are justified by the fact that it offers top-notch protection. The reason is simple: It’s to protect the “big boys”—sectors where reliability is non-negotiable. If national treasuries finally embrace Bitcoin as the ultimate digital store of value, it will open the door to its true utility as the digital fortress for the most critical pieces of public infrastructure—its price will never turn back, literally reaching the Moon and even Mars.