Why Bitcoin? (Part 2)
Global tensions, institutional moves — and a U.S. strategic reserve.
In Part 1, we explored the historical foundations of today’s global financial system — from Bretton Woods to fiat currencies and the rise of inflation and debt.
Today, we zoom in on 2025:
- Why is Bitcoin at $117,000+?
- Why are governments and institutions suddenly embracing Bitcoin?
- What is the U.S. Strategic Bitcoin Reserve — and why does it matter?
Let’s break it down in plain English.
🌍 Global Economic Tensions in 2025
The world economy today is anything but stable. Here’s what we’re seeing:
- Inflation is persistent, despite interest rate hikes.
- U.S. federal debt has surpassed $34 trillion — adding ~$1 trillion every 100 days.
- Central banks globally are exploring CBDCs (Central Bank Digital Currencies).
- Trade tensions and geopolitics (especially U.S. vs. China) continue to reshape global alliances.
The result? Growing mistrust in traditional finance — and an urgent search for alternative stores of value.
📈 Bitcoin Hits $117,000 — But This Time It’s Different
Yes, Bitcoin is at an all-time high in mid-2025. But this is not 2017 or 2021. It’s not just about hype, memes, or retail speculation.
This rally is fueled by institutional demand, global macro trends, and a surprising shift from governments themselves.
🏦 BlackRock’s Move: From Skepticism to Bitcoin Bull
In 2023, BlackRock — the world’s largest asset manager with over $10 trillion under management — launched a spot Bitcoin ETF called IBIT.
Why does that matter?
Because the CEO of BlackRock, Larry Fink, once dismissed Bitcoin entirely. He now calls it:
“A global asset... digital gold that can transcend any one country’s monetary policy.”
BlackRock’s entry:
- Opened the door for pension funds and sovereign wealth funds.
- Brought Bitcoin into regulated, traditional portfolios.
- Signaled to the market: Bitcoin is here to stay.
💡 BlackRock didn’t just allow access — it helped normalize Bitcoin for the biggest players in finance. And this is huge.
🇺🇸 The U.S. Strategic Bitcoin Reserve — Yes, Really
In March 2025, the U.S. government officially established a Strategic Bitcoin Reserve.
No, this isn’t a Reddit theory. It’s real — signed into law by executive order.
What is it?
- A formal treasury-managed reserve of Bitcoin, primarily sourced from past criminal forfeitures (e.g., Silk Road, Bitfinex).
- Held under a no-sell policy, unless budget-neutral justification is made.
- Estimated to include 200,000+ BTC, worth $20+ billion as of 2025.
- One of the largest sovereign Bitcoin holdings in the world.
This is the first time in history a major government has recognized Bitcoin as a strategic asset — on par with oil and gold.
Bitcoin is no longer just tolerated — it's being actively held at the highest level of national finance.
🛡 Why This Matters: Bitcoin as a Hedge
Whether you're a nation-state, asset manager, or individual:
- You can print more fiat.
- You can manipulate interest rates.
- But you can’t print more Bitcoin.
Bitcoin is:
- Finite (21 million Bitcoin max, ever)
- Global
- Decentralized
- Censorship-resistant
- Digital-native and borderless
As inflation erodes purchasing power and currencies lose trust, Bitcoin acts as a hedge — not just against inflation, but against centralized failure.
🌏 Geopolitical Shifts: CBDCs, BRICS, and the Rise of Alternatives
Around the world, governments are:
- Launching digital national currencies
- Exploring gold-backed trade
- Ditching the dollar for bilateral deals (e.g. China-Brazil, India-Russia)
But all of these are still centralized systems.
Bitcoin remains the only decentralized, permissionless monetary network accepted across borders — with no central authority.
Summary: Why Bitcoin Makes Sense in 2025
Bitcoin today is:
- Held by governments (U.S. Strategic Reserve)
- Embraced by Wall Street (BlackRock, Fidelity, etc.)
- Priced higher than ever before
- And still capped at 21 million — forever
It’s not a conspiracy.
It’s not a passing trend.
It’s a monetary shift in real-time.
Final Thought
Bitcoin doesn’t solve every problem. It won’t instantly fix the global economy. But it gives you — and institutions — a plan B.
In a world of growing debt, political polarization, currency wars, and surveillance finance, Bitcoin is apolitical, finite, and digital.
And now that governments are officially holding it — the question isn’t “is it too risky to own?”
It’s “how much is too little?”
📚 Resources & References
📰 White House Fact Sheet on Strategic Bitcoin Reserve (March 2025)
📊 Larry Fink, CEO of BlackRock, says "I believe bitcoin is a legit financial instrument"
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