Sovereign wealth funds and Bitcoin's future

The president of the United States, Donald Trump signed An executive order to create a sovereign wealth fund. While the media speculate if the United States government will invest in cryptography, let's take a broader look at the past and the future potential of bitcoin (btc).

What formed bitcoin's trends?

In the last 17 years, the price of bitcoin rose from $ 0 to a historical maximum of $ 110,000, but its trajectory has been anything but linear. In 2010, for example, you needed five thousand btc just to buy a pizza. The dawn of the infamous market of the silk route in 2011 contributed to an early price peak. When the US authorities demolished the market, the subsequent public hearing of the United States Senate unexpectedly promoted the bitcoin price of several hundred dollars to more than $ 1,200 per currency.

Then the first season of Altcoin arrived, fueled by the arrival of ethereum (eth) in 2016 and the initial boom of the supply of coins that ended in 2017. This period led bitcoin to an incredible maximum of $ 20,000. After his first cryptographic winter of 2017–2018, bitcoin gradually recovered. The emergence of decentralized finances and the explosion of not founded tokens injected renewed energy as innovative projects and adoptive enthusiasts rise again. Although bitcoin itself was not the driving force behind Defi, ethereum's intelligent contracts assumed that role, bitcoin remained the main entrance door for cryptographic investments, with its “wrapped” version that appeared in decentralized exchanges and market manufacturers Automated from 2018 to 2020. nfts also accompanied bitcoin de bitcoin. climb. After a modest reversal, COVID-19 hit, and governments around the world knocked down a rain of newly printed money to their citizens, feeding another wave of interest of investors.

Just when it seemed that trends slowed down, institutional investors entered the scene. Traditional financial institutions began to adopt bitcoin, launching funds quoted in exchange around 2022, which reached popularity between 2024 and 2025. This expanded access for retail and institutional investors and reinforced the state of bitcoin as “digital gold”.

National wealth funds

Now, with rumors revolving that the United States government could soon celebrate direct cryptography investments through recently initiated sovereign wealth funds, it is worth considering what would happen if this becomes a reality.

Without a doubt, the United States would establish a global precedent for other countries. This trend could shape the next two to five years and potentially send the price of bitcoin shooting, perhaps fulfilling the wildest dreams when reaching $ 1,000,000 per currency. However, there is a trap. Even the most powerful financial organizations can suffer from Miope.

What drives the value of bitcoin?

bitcoin never completely became the “electronic effective” planned in Satoshi Nakamoto's <a target="_blank" href="https://bitcoin.org/bitcoin.pdf” target=”_blank” rel=”nofollow”>White paper. Its era of the silk route may have been its golden age for real world transactions. For clarity, it is still the reference option for shaded trades worldwide. In legitimate markets, bitcoin works mainly as a value reserve, a speculative asset negotiated by investors with little consideration for its original utility.

We have seen it evolve through multiple times, and now we are on the threshold of potentially the largest so far: national investments. Many governments already have some btc, often seized from criminal companies. Even so, if the Treasury departments jump late, they could lose significant profits, while the first engines such as El Salvador could enjoy a larger unexpected gain. Until now, each trend has expanded the bitcoin investor base, but what could overcome the participation of institutional organizations, retirement funds (still to embark) and national treasure bonds? Finally, you run out of buyers on Earth, there is certainly no one on the moon to continue the trend once bitcoin comes there.

That is why I consider mine to expect bitcoin's speculative value to continue to be fed by these trends indefinitely. Those who could shape the future of bitcoin and make their use really sustainable, beyond mere speculation, unfortunately, show few signs of having a long -term vision. My prediction is that they will leave silently before the trend turns down.

Alternative future (sustainable)

Many question bitcoin's reliability, but such skepticism is often based on defective assumptions. bitcoin is not centralized or vulnerable: it has operated as an accessible older book for more than 17 years without important interruptions, an incomparable feat.

If national treasure bonds recognize bitcoin's resilience, could pave the way for passed applications. bitcoin has the potential to evolve to a robust application platform similar to ethereum. While some engineers discuss this, I believe that their skepticism comes from the lack of deep experience in this area.

Imagine taking advantage of the bitcoin block chain for a national land registry, a decentralized alternative to the ICANN TLD system, or even a voting system for democratic countries. bitcoin's higher rates could be justified for their unprecedented safety, particularly for public and private critical mission systems that handle valuable assets. While cheaper and less safe block chains can attract speculative or experimental projects, bitcoin is designed for scenarios in which reliability triumphs over the cost.

Conclusion

He waited for a long time that DAPPS and intelligent contracts believe in bitcoin (and I am deeply involved in the Technical side), holding that its high rates are compensation that is worthwhile for top -level security. It is for the “big boys”, the sectors where reliability is not negotiable. If Treasury bonds finally adopt bitcoin as the last digital value store, it will open the door to its true utility as the digital strength for the most critical pieces of public infrastructure: its price will never return, literally arriving at the Moon and even Mars .