Strategic Reserves: Gold, Oil... and Bitcoin?
Inside the Senate's Historic Bitcoin Hearing
Antoinette Rodriguez, MBA
February 24, 2025
If we command our wealth, we shall be rich and free. If our wealth commands us, we are poor indeed
What started as a niche debate among tech investors has now reached America’s highest levels of power. On February 26, 2025, the U.S. Senate will have a subcommittee hearing on a bold proposal: adding Bitcoin to the nation’s strategic reserve—a savings account currently filled with gold bars and oil barrels. The idea gained traction after Wyoming lawmakers (led by Cynthia Lummis) drafted the Bitcoin Reserve Act in late 2024, arguing that relying solely on 20th-century assets leaves the economy vulnerable in our digital age. Behind the scenes, the crypto industry flexed its financial muscle by contributing nearly half of all corporate political donations in the 2024 elections, leveraging this unprecedented spending to accelerate regulatory decisions in their favor. Supporters claim Bitcoin’s borderless design could shield the U.S. from currency crises, while critics warn its volatility could backfire. With recent events like the 2024 banking collapse still fresh, the hearing reflects a growing urgency to modernize America’s financial defenses. Here’s what’s at stake:
Bitcoin as a Backup Plan
The government wants to buy 1 million Bitcoin over the next five years to hold as emergency savings. Bitcoin’s supporters highlight its limited supply—only 21 million will ever exist—making it rare like gold. Unlike gold, however, Bitcoin can be sent globally in minutes. Critics counter that Bitcoin’s value swings wildly. For example, after the Federal Reserve cut interest rates in late 2024, Bitcoin’s price plunged 20% in a single day, raising concerns about stability.
The Hacking Problem
Storing Bitcoin safely is a major challenge. Bitcoin relies on private keys—complex digital passwords—to protect ownership. If hackers steal these keys, they can drain entire accounts. In early 2024, hackers stole $112 million worth of Bitcoin from a crypto company by breaching its security systems. To reduce this risk, the government might store keys offline (like on unhackable USB drives), but this could slow access during emergencies.
About the Author:
Based at One World Trade Center, Antoinette Rodriguez, MBA, delivers actionable insights at the intersection of AI and decentralized finance through Global AI & Crypto Decoded. Drawing from two decades of Wall Street experience and her role as Chairwoman of Financial Advisor Magazine's Invest in Women initiative, Rodriguez provides thought leadership through her weekly newsletter reaching thousands globally, commissioned white papers, and speaking engagements across the Americas and Europe.
Available for:
✓ Newsletter Sponsorship - Reaching thousands of global wealth managers, digital asset enthusiasts, institutional investors, PE firms, and family offices
✓ White Paper Co-Authorship - Translating fintech and DeFi innovations for traditional finance audiences worldwide. Well-funded startups and mid-cap fintech/DeFi companies encouraged to inquire
✓ Speaking Engagements - Keynotes and expert panels at global fintech, family office, and investor events
To discuss newsletter sponsorship, white paper collaboration, or speaking engagements, connect with Antoinette Rodriguez through LinkedIn private messages.
China’s Influence on Bitcoin
Most Bitcoin mining machines—specialized computers that create new Bitcoin—are built in China. Last month, a U.S. mining facility in Wyoming discovered hidden vulnerabilities in Chinese-made hardware that could let hackers infiltrate systems. Additionally, Chinese groups control 65% of the global Bitcoin network, meaning they could theoretically disrupt transactions during geopolitical conflicts. To counter this, Texas is investing $2 billion to develop American-made mining machines.