Prediction: Bitcoin Will Become a Reserve Currency

  • July 8, 2025
  • Category:
Prediction: Bitcoin Will Become a Reserve Currency

Key Points

Gold has long been an asset that central bankers prefer to hold on their balance sheets. Today, with global finance digitizing by the month, an asset born entirely on the internet is now auditioning for the same role.

That asset is Bitcoin (CRYPTO: BTC) , and the audition is getting very serious. In fact, I predict that sometime within the next 10 years, this coin will become a reserve asset that at least a few central banks around the world will aspire to hold for the long term.

There are a few things that clearly point toward a scenario where Bitcoin sits beside gold and U.S. Treasuries as an important reserve asset. Let's see what makes this scenario likely, and why things look brighter than ever for the cryptocurrency's future.

This asset is already walking the walk

A reserve asset must be reliably scarce, and this coin has that quality covered better than any other such asset.

Bitcoin's supply is hard-capped at 21 million coins, and 93.3% of that total is already in circulation, leaving very little future dilution possible.

As with precious metals, substantial capital investment is required to mine the unexploited supply. But unlike in metals, with Bitcoin, there can be no fresh discovery that will boost output. That makes its supply even more reliably constrained than gold over the very long run.

Furthermore, its issuance falls by 50% roughly every four years in the halving , meaning the asset's inflation rate trends toward zero on an automatic schedule. That sounds like something central bankers would appreciate, as it eliminates some of the need to rebalance the value of the holding due to any drift caused by inflation.

Another big plus is that a growing slice of that finite pile is migrating into sovereign and quasi-sovereign hands. Such holders are not apt to dump their holdings abruptly and cause volatility.

Prediction: Bitcoin Will Become a Reserve Currency

Governments collectively hold 2.3% of all mined coins. That's more than 463,000 Bitcoin, mostly sourced from seizures that authorities decided not to auction away. The floating supply shrinks further when corporations add coins to their treasuries or exchange-traded fund (ETF) sponsors warehouse inventory for retail buyers.

Scarcity is only half the story here. Neutrality is the other.

Bitcoin is not an asset with any regard for politics or sanctions lists in any specific country. For central banks managing currency volatility, that independence can be a hedge against counterparties weaponizing payment rails.

OK