KEYTAKEAWAYS
- BTC and ETH are central to the U.S. Crypto Reserve due to their dominance, security, and institutional adoption.
- Ripple enables fast cross-border payments, while Solana and Cardano drive high-performance and research-driven blockchain development.
- This plan positions the U.S. as a global crypto leader, fostering institutional adoption and strengthening blockchain-based financial systems.
CONTENT
On the night of March 2, 2024, the cryptocurrency market was in chaos. Prices were crashing, and investors watched helplessly as their assets lost value. Suddenly, former U.S. President Donald Trump made a shocking announcement on social media:
“A U.S. Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration, which is why my Executive Order on Digital Assets directed the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes XRP, SOL, and ADA. I will make sure the U.S. is the Crypto Capital of the World. We are MAKING AMERICA GREAT AGAIN!”
He then added:
“And, obviously, BTC and ETH, as other valuable Cryptocurrencies, will be the heart of the Reserve. I also love Bitcoin and Ethereum!”
This statement made it clear: Trump officially supports five specific cryptocurrencies and plans to establish a U.S. Crypto Reserve, which includes:
- Bitcoin (BTC)
- Ethereum (ETH)
- Ripple (XRP)
- Solana (SOL)
- Cardano (ADA)
Why were these cryptocurrencies chosen for the U.S. Crypto Reserve? What do they have in common? And why was Binance Coin (BNB), the fifth-largest cryptocurrency by market value, not included? This article will analyze the reasons behind Trump’s choices.
BITCOIN (BTC): THE “DIGITAL GOLD” OF CRYPTO
Bitcoin (BTC) was created in 2009 by Satoshi Nakamoto, a mysterious figure in the crypto world. It is the first decentralized, peer-to-peer payment system that does not require third-party trust. Bitcoin is often called “digital gold” because it is seen as a store of value resistant to inflation and government control.
Bitcoin is the most recognized cryptocurrency in the world. It has the highest market value, currently over $1.66 trillion, and represents more than 50% of the total crypto market. Many institutional investors hold Bitcoin, and the approval of Bitcoin Spot ETFs in the U.S. has further legitimized it.
Bitcoin has a fixed supply of only 21 million coins. Unlike government-issued money, which can be printed infinitely, Bitcoin cannot be devalued by government interference.
Bitcoin is also highly decentralized. No government or entity can change Bitcoin’s supply rules or freeze user assets, which aligns with Trump’s belief in limiting government intervention in financial markets.
If the U.S. government holds large amounts of Bitcoin, it could strengthen its financial influence worldwide. Countries like El Salvador have already made Bitcoin legal tender. If the U.S. adopts Bitcoin strategically, it could affect global financial systems.
ETHEREUM (ETH): THE LEADING SMART CONTRACT PLATFORM
Ethereum (ETH) was launched in 2015 by Vitalik Buterin (V God). Unlike Bitcoin, Ethereum is not just a payment system; it is a blockchain infrastructure that supports smart contracts and decentralized applications (DApps).
Ethereum is the largest smart contract platform, allowing developers to build decentralized applications, including DeFi (Decentralized Finance), NFTs (Non-Fungible Tokens), and DAOs (Decentralized Autonomous Organizations).
More than 80% of DeFi projects run on Ethereum, with a total locked value (TVL) exceeding $70 billion, making it the largest blockchain financial ecosystem.
Ethereum has upgraded from Proof-of-Work (PoW) to Proof-of-Stake (PoS), reducing energy consumption and improving transaction efficiency, making it more environmentally friendly.
Major companies like JP Morgan, Visa, and Microsoft are actively using or researching Ethereum, making it an important part of the U.S. crypto ecosystem.
RIPPLE (XRP): THE BRIDGE FOR INTERNATIONAL PAYMENTS
Ripple (XRP) was launched in 2012 by Ripple Labs with the goal of replacing the traditional SWIFT system for international payments. By using XRP, financial institutions can settle cross-border transactions faster and at lower costs.
XRP transactions are almost instant, taking only 3–5 seconds, compared to traditional cross-border payments, which can take 1–3 days. The transaction fees are also much lower than SWIFT and traditional banking systems.
Ripple has partnered with hundreds of banks and financial institutions, including Bank of America and Standard Chartered.
In 2023, Ripple won a legal battle against the U.S. Securities and Exchange Commission (SEC), which confirmed that XRP is not considered a security in certain transactions. This victory strengthened XRP’s position in the U.S. crypto market.
SOLANA (SOL): THE HIGH-PERFORMANCE BLOCKCHAIN
Solana (SOL) was launched in 2020 and is known for its high speed and low-cost transactions. It is often called an “Ethereum killer” because it aims to provide a more scalable blockchain solution.
Solana can process up to 50,000 transactions per second (TPS), far more than Ethereum, which currently handles about 30 TPS. It achieves this using its Proof-of-History (PoH) + Proof-of-Stake (PoS) consensus mechanism.
Transaction fees on Solana are much lower than Ethereum, making it a preferred choice for developers. It has a thriving NFT and DeFi market, attracting many investors.
CARDANO (ADA): THE ACADEMICALLY-DRIVEN BLOCKCHAIN
Cardano (ADA) was created by Charles Hoskinson, one of Ethereum’s co-founders. It focuses on security, sustainability, and real-world financial solutions.
Cardano is built using peer-reviewed academic research, ensuring high security and reliability. It uses the Proof-of-Stake (PoS) mechanism, making it energy-efficient and scalable.
Cardano has real-world applications in developing countries. It has partnered with the Ethiopian government to provide blockchain-based identity verification for 5 million students.
CONCLUSION
Bitcoin and Ethereum, as the cornerstones of the cryptocurrency economy, are renowned for their security, decentralization, and widespread adoption. Ripple’s XRP meets the need for faster and more efficient global transactions, potentially revolutionizing the international banking system. Solana and Cardano represent the future of high-performance and research-driven blockchain technology, supporting the next wave of decentralized applications.
This move could have profound implications for the global cryptocurrency market, encouraging greater institutional investment and propelling the United States to establish its leadership in the blockchain technology sector.
Although it remains uncertain whether Trump’s vision will come to fruition, one thing is clear—the United States is adopting a more cautious and deliberate approach to cryptocurrency in its pursuit of financial dominance and technological leadership in the digital age.
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