Trump's aide foresees Bitcoin rivalry in US-China space race

The emergence of Bitcoin as a potential international reserve asset may lead to heightened competition among nations, according to David Bailey, a cryptocurrency policy advisor from President-Elect Trump’s campaign. 

Bailey suggests that this competition will primarily involve the United States and China, with China replacing Russia as the main rival in what he describes as a “bitcoin space race.” 

“Right now there are two Bitcoin superpowers, the USA and China. There is probably room for two or three more, and that’s it,” he stated on social media.

Currently, the U.S. holds approximately 200,000 BTC, making it the leading nation in Bitcoin ownership. 

China follows closely with an estimated 190,000 BTC, despite its anti-crypto policies. 

These holdings have largely come from seizures related to illegal activities, such as pyramid schemes and other criminal enterprises.

Bailey believes that there is potential for two or three additional countries to join this elite group of Bitcoin holders, each maintaining significant reserves. 

He predicts that up to 30 other nations could emerge in a secondary tier, holding lower amounts of Bitcoin, while many others may struggle to accumulate even modest holdings.

“The rest will never get past 5 figures of BTC. Bitcoin Space Race is on,” Bailey asserted, highlighting the urgency for nations to act quickly.

He emphasised that his analysis is grounded in mathematical projections regarding Bitcoin distribution among countries. 

Bailey urged U.S. authorities to establish a strategic Bitcoin reserve promptly to avoid being outpaced by other nations seeking similar strategies.

At the time of reporting, the Bitcoin price was $99,515.14.