Disclosure: The opinions and opinions expressed here belong to the authors solely and do not represent the views or opinions of the crypto.news editorial.
US President Donald Trump has signed an executive order to establish a Sovereign Wealth Fund. The media speculates whether the US government will invest in crypto, but let’s take a more broad look at Bitcoin (BTC)’s past and potential future.
What formed the Bitcoin trend?
Over the past 17 years, Bitcoin prices have risen from $0 to $110,000 from their historic highs, but their trajectory has been non-linear. For example, in 2010, I needed 5000 BTC just to buy pizza. The dawn of the infamous Silk Road Marketplace in 2011 contributed to early price spikes. When US officials overthrew the market, subsequent US Senate hearings unexpectedly pushed the price of Bitcoin from hundreds to over $1,200 per coin.
It then promoted the arrival of Ethereum (ETH) in 2016 and the first coin season providing the boom that would end in 2017. This period has pushed Bitcoin to an incredible $20,000. After the first crypto winter of 2017-2018, Bitcoin gradually recovered. The rise of decentralized finances and the explosion of eerie tokens injected updated energy as innovative projects and enthusiastic adopters again raised prices. Bitcoin itself wasn’t the driving force behind defi, but Ethereum’s smart contracts did their part. Vitocoin has been released in a “wrapped” version of the distributed exchange and automated market maker from 2018 to 2020. climb. After a modest rollback, Covid-19 hit, and governments around the world poured rain of newly printed money on their citizens, fueling another wave of investor interest.
Institutional investors entered the field to make it seem like the trend was slowing down. Traditional financial institutions began adopting Bitcoin, launched funds traded in exchange around 2022, reaching its popularity peak between 2024 and 2025. This has expanded access to both retail and institutional investors, enhancing Bitcoin’s status as “digital gold.”
National funding
Nowadays, rumors are swirling that the US government could soon make direct crypto investments through its newly launched sovereign wealth fund, so it’s worth considering what will happen if this becomes a reality.
Without a doubt, the US will set a global precedent for other countries. This trend could shape the next two to five years, and the price of Bitcoin could skyrocket, perhaps achieving the wildest dreams by reaching $1,000,000 per coin. However, there is a catch. Even the most powerful financial organizations can suffer from myopia.
What drives the value of Bitcoin?
Bitcoin never became the “electronic cash” as envisaged in the Nakamoto AT Island white paper. That Silk Road era may have been a golden age for real transactions. To be clear, it remains a go-to option for shady transactions around the world. In a legal market, Bitcoin mainly serves as a store of value. This is a speculative asset that investors trade with little consideration of the original utility.
We have seen it evolve through multiple eras, and we are now at the threshold of national investment, the biggest potential. Many governments already own some BTC, and are often seized from criminal enterprises. Still, if the Treasury has skyrocketed recently, they may miss a significant profit, but early invokers like El Salvador can enjoy the bigger stairwell. The previous trends have expanded the investor base for Bitcoin, but can it outweigh the participation of institutional organizations, retirement pension funds (still embark on), and national treasures? In the end, you ran out of buyers on Earth. Once Bitcoin gets there, there’s no one in the month to continue the trend.
Therefore, we consider Bitcoin’s speculative value to be short-sighted, in hopes that these trends will continue to be promoted indefinitely. People who can shape the future of Bitcoin and make its use truly sustainable beyond mere speculation, unfortunately show little indication of having a long-term vision. My prediction is that it will quietly close before the trend changes downwards.
Alternative (sustainable) future
While many have questioned the reliability of Bitcoin, such skepticism often relies on flawed assumptions. Bitcoin is not centralized and not vulnerable. It has served as a publicly accessible ledger for over 17 years without any major confusion. It’s an unparalleled feat.
If the National Treasury is aware of Bitcoin’s resilience, it could pave the way for long-term degree applications. Bitcoin has the potential to evolve into a robust application platform similar to Ethereum. Although some engineers have discussed this, I think their skepticism stems from a lack of detailed expertise in the field.
Imagine using Bitcoin blockchain for the National Land Registry. Imagine a decentralized alternative to ICANN’s TLD system, or even a democratic country voting system. High Bitcoin charges can be justified by unprecedented security. Especially in mission-critical public and private systems that handle valuable assets. While inexpensive and unsafe blockchains can appeal to speculative or experimental projects, Bitcoin is designed for scenarios where reliability is more cost-effective.
Conclusion
I have long advocated for building daps and smart contracts on Bitcoin (and I am deeply involved in the technical aspect). It claims that high prices are a valuable trade-off for top-class security. It is for sectors where reliability is not negotiable. If the National Treasury is ultimately embracing Bitcoin as the ultimate digital store, the door opens to true utility as the digital fortress of most important public infrastructure. .
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
