On March 20, a prominent investor and entrepreneur highlighted that “There’s a global race going on–Russia, Abu Dhabi, El Salvador, Bhutan–countries are trying to buy Bitcoin. Just as there was a space race, there’s now a Bitcoin race.”
The notion of a Bitcoin “race” is gaining traction as global leaders contemplate the necessity of establishing digital asset reserves or recognizing cryptocurrency as legal tender.
In 2021, El Salvador made history by becoming the first nation to adopt Bitcoin as legal tender, acquiring more than 2,000 Bitcoin for its national reserve to promote financial inclusion and stimulate economic growth. This groundbreaking decision has garnered both praise and scrutiny due to Bitcoin’s inherent volatility. Following suit, the Central African Republic embraced Bitcoin in 2022, aiming to leverage the cryptocurrency as a catalyst for economic development in one of the world’s most impoverished nations.
These moves underscore a burgeoning interest among nations in Bitcoin as a viable financial alternative. With a capped supply of 21 million Bitcoin, the diminishing availability has spurred efforts by these countries to secure a larger share of the total BTC supply.
Advocates argue that Bitcoin’s scarcity coupled with increasing demand will enhance its value, positioning those who hold substantial amounts as influential players in the market.
Insights from Key Figures
In remarks about Bitcoin’s potential, a leading Bitcoin proponent noted that significant portions of the U.S. were acquired for relatively low amounts in the past. Drawing parallels to historical land deals, the call was made for the U.S. government to strategically invest in Bitcoin while prices are still low.
Describing the upcoming decade as “a digital gold rush,” the advocate compared Bitcoin to the Manhattan Project, referring to it as “digital energy.”
“Today, Bitcoin is the digital capital network, holding nearly all power in the cryptocurrency ecosystem,” he asserted. “The U.S. government acknowledges Bitcoin as legitimate digital capital, essential for maintaining global financial leadership. Only Bitcoin and U.S. Treasuries possess the global trust and liquidity needed to act as reliable reserve assets.”
This advocacy has drawn attention from various government officials who are keen to bolster the U.S.’s Bitcoin reserves.
Like other advocates, it is acknowledged that the focus on Bitcoin is crucial for economic strategy. With speculation surrounding Bitcoin’s future price, there is optimism that Bitcoin will ultimately increase in value, reflecting its status akin to gold.
Currently, Bitcoin is trading at just over $84,000.
“People are significantly underestimating how aggressively they will pursue Bitcoin,” the advocate emphasized. “They view initial holdings as significant, but the pursuit of Bitcoin will only intensify.”
Countries Engaged in the Bitcoin Race
Besides the U.S., other nations including Russia, El Salvador, Bhutan, and the UAE are reportedly holding Bitcoin assets, though their intentions to expand these reserves vary.
While the extent of Russia’s Bitcoin holdings remains ambiguous, the country demonstrates substantial mining operations and employs cryptocurrency for trade and circumventing international sanctions.
Other notable Bitcoin holders include China, which ranks just after the U.S. in total BTC assets, with the U.K. and Ukraine following closely.
Different strategies are evident across countries:
- North Korea employs hacking tactics to amass significant crypto assets.
- The U.K. has seized Bitcoin from criminal operations, adding to its reserves.
- Ukraine has gained Bitcoin through public donations in response to ongoing conflict.
- The U.S. aims to confiscate Bitcoin tied to criminal investigations, with local initiatives exploring community-level reserves.
Furthermore, major corporations, particularly MicroStrategy and BlackRock, have positioned themselves as some of the largest Bitcoin holders globally, rivaling the holdings of entire nations. Both entities collectively own or manage approximately 500,000 Bitcoin, which is over 2% of the total supply as of March 2025.
Caution Among Nations
European countries display a cautious yet innovative approach to blockchain technologies. Estonia, for example, has integrated blockchain for electoral processes and healthcare management. However, many EU states remain hesitant about adopting cryptocurrency for reserves, citing its volatility and low liquidity as significant concerns.
This reticence is echoed by nations such as Switzerland, South Korea, and Japan, which maintain a distance from the U.S.’s drive to dominate Bitcoin holdings. Germany has gone so far as to divest thousands of Bitcoin from its reserves.
In a market increasingly focused on Bitcoin, a corporate entity utilizing Bitcoin as a reserve shared its long-term perspective, emphasizing their commitment to buy and hold, rather than attempt to time the market.
As the so-called Bitcoin race unfolds, questions arise about the implications for nations that do not prioritize digital asset reserves as historical power dynamics evolve. Will those nations be left behind in this new landscape of financial strategy?
