Bitcoin vs. Altcoins: Crypto Leaders Clash Over Trump’s Reserve Strategy
The post Bitcoin vs. Altcoins: Crypto Leaders Clash Over Trump’s Reserve Strategy appeared first on Coinpedia Fintech News
Since President Trump confirmed plans for a US crypto reserve, speculation has been rampant about which assets will be included. While Bitcoin is expected to dominate, many believe that altcoins like XRP, Solana, Ethereum, and Cardano could also be part of the reserve. Farcaster co-founder Dan Romero has shared insights into how the government might manage these assets.
No New Purchases—Only Seized Crypto
Romero believes the Trump administration will not buy new crypto but will instead use only assets that have been seized. He predicts Bitcoin will make up about 80% of the reserve due to its global acceptance and dominance.
However, XRP and Cardano’s ADA could serve a different purpose. Romero suggests they might be used for in-kind tax payments or donations, hinting at potential government partnerships with Ripple and Cardano.
Critics Push for a Bitcoin-Only Reserve
Not everyone agrees with including altcoins. A CNBC report highlights skepticism within the crypto community. Gemini co-founder Tyler Winklevoss argued that only Bitcoin meets the criteria for a strategic reserve. Economist Peter Schiff also questioned the decision to include other assets.
Coinbase CEO Brian Armstrong also wants a Bitcoin-only reserve. He sees Bitcoin as a decentralized, gold-like asset. However, he said that adding other cryptocurrencies is seen as risky and a misuse of taxpayer money. Critics, including tech investor Joe Lonsdale, argue that the government shouldn’t be spending on speculative assets while running a massive deficit.
Anthony Pompliano, a strong Trump supporter in the crypto space, criticized the move in his newsletter, arguing that Trump’s decision to include multiple cryptocurrencies in the U.S. reserve was influenced by the wrong people. He believes special interest groups and lobbyists convinced Trump to back riskier tokens under the guise of supporting “American-made” crypto projects, which he sees as a trap that goes against the original pro-Bitcoin agenda.
Crypto Czar David Sacks dismissed these concerns, saying it’s too early to judge the plan. However, industry figures like Naval Ravikant and Vinny Lingham strongly opposed the idea, warning that taxpayers shouldn’t be used as liquidity providers for these assets.
XRP Proponents Back Trump’s Strategy
In contrast, XRP supporters welcome the move. Cardano founder Charles Hoskinson praised XRP’s resilience and strong community, calling it a smart choice. Ripple CEO Brad Garlinghouse hailed Trump’s decision as a significant step forward, emphasizing the importance of a multichain future.
With debate intensifying, the crypto community awaits further details on how the US crypto reserve will be structured and managed.
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