Gold, oil and the growing role of Bitcoin
The United States has long relied on gold and oil as key reserves, but with the growing institutional adoption of Bitcoin, its potential role as a strategic reserve has increased significantly. This potential was further emphasized by the arrival of the new administration to power in January 2025.
Historically, gold has been the foundation of monetary systems, while oil remains a key economic and security resource. Bitcoin, on the other hand, brings a whole new digital form of reserve that is changing traditional financial paradigms.
Currently, the U.S. owns about 8,133.46 metric tons of gold, which is worth approximately $789.87 billion, making it the largest sovereign holder of gold reserves. These reserves serve as insurance against economic instability, although they ceased to serve as the basis for the dollar after the gold standard was abandoned in 1971.
In terms of oil, the United States operates the Strategic Petroleum Reserve (SPR), which stood at about 372 million barrels in August 2024, with an estimated value of $28 billion at market prices at the time. The SPR was established during the oil crisis of the 1970s to control supply disruptions and stabilize energy prices.
Bitcoin, while not an official reserve, is a significant asset owned by the state, predominantly through confiscations. The U.S. government is estimated to control around 200,000 BTC, which is approximately $20.7 billion at Bitcoin’s price of $103,500 today. Unlike gold and oil, these reserves are not held as strategic assets, but are managed as assets pending auction or liquidation through the Department of Justice and the U.S. Marshals Service.
Source: cointelegraph
Liquidity and dynamics of the gold, oil and Bitcoin markets
Gold, oil, and Bitcoin each have unique characteristics of liquidity and market dynamics – gold is the safest, oil is governed by geopolitical factors, while Bitcoin is characterized by high volatility and 24/7 availability.
The liquidity of an asset in a particular market is a key indicator of its financial health. In general, the higher the liquidity, the better opportunities investors have for pricing and risk management. Let’s take a look at how gold, oil, and Bitcoin differ in terms of liquidity and market dynamics:
Gold: It remains one of the most liquid financial assets, with daily trading volumes exceeding $200 billion in the futures, ETFs, and OTC markets. Its deep liquidity and universal recognition make it a preferred asset for central banks, institutional investors, and governments looking to protect their assets from inflation and currency fluctuations. Although the price of gold fluctuates, it has historically maintained lower volatility compared to most other assets.
Petroleum: Oil is traded in large volumes on the spot and futures markets, with daily trading volume reaching around one million barrels globally. Unlike gold, oil liquidity is highly dependent on industrial demand and geopolitical developments. The price of oil is extremely vulnerable to supply disruptions, OPEC decisions and macroeconomic policies. Due to its role in the energy sector, oil volatility is significantly higher than gold, and prices can fluctuate sharply due to political instability, production cuts, or major conflicts.
Bitcoin: Despite being a relatively new asset, Bitcoin is extremely liquid, with daily trading volumes often exceeding $30 billion to $50 billion on global exchanges. While Bitcoin has gained legitimacy among institutional investors, it remains significantly more volatile than gold and oil due to speculative demand, regulatory uncertainty, and market structure. Unlike gold and oil, Bitcoin is traded without interruption, 24 hours a day, seven days a week, making it unique in terms of availability and global liquidity.
Source: cointelegraph
Concerns about the storage and safety of spare assets
Storage and security are key factors for any reserve asset, and each type of asset comes with specific challenges and costs.
Gold: It is typically kept in high-security facilities like Fort Knox, the Federal Reserve in New York, and other vaults around the world. The cost of storing gold varies, but large government reserves require extensive security infrastructure, transportation costs, and insurance. Physical gold is also susceptible to theft, requiring constant auditing to verify the authenticity and accuracy of the weight. Institutions that store gold in vaults pay custody fees ranging from 0.10% to 0.50% per year, depending on the custody provider.
Petroleum: Unlike gold and Bitcoin, oil poses a logistical challenge because it must be stored in underground salt caverns, refineries, or tanker fleets. Maintaining the Strategic Petroleum Reserve (SPR) requires billions of dollars in infrastructure, maintenance, and security. Additionally, oil storage is at risk of deterioration due to environmental conditions, evaporation, and contamination, making oil storage more expensive compared to gold or Bitcoin.
Bitcoin: Bitcoin storage is fundamentally different because it is a digital asset. Governments and institutions mainly use cold storage and multi-signed security systems (multisig) to protect their funds. While Bitcoin storage does not require physical facilities, cyber risks such as hacking, loss of private keys, and regulatory oversight pose serious challenges. Institutional custody solutions, such as BitGo, Fireblocks, and Coinbase Custody, charge fees of 0.05% to 0.25% per year, which is significantly less than the cost of storing gold. However, the irreversibility of Bitcoin transactions increases the risks associated with improper management or unauthorized access.
Source: cointelegraph
Strategic and economic role
Gold, oil, and Bitcoin play a significant strategic role in the global economy – gold serves as a hedge against inflation, oil shapes geopolitical stability, and Bitcoin is increasingly positioning itself as a decentralized asset to hedge against inflation.
Gold: Gold’s strategic role in the global economy dates back thousands of years, where it served as a universal means of exchange and store of value. The U.S. formally pegged its currency to gold in the Bretton Woods system (1944–1971), making the dollar the world’s reserve currency backed by gold. Although the U.S. abandoned the gold standard in 1971, gold remained a key strategic asset that central banks around the world still hold as insurance against currency devaluation and inflation.
Petroleum: Oil has developed into an indispensable economic and security asset, with price fluctuations directly affecting inflation, consumption, and geopolitical stability. The founding of OPEC in 1960 and the subsequent oil crises of the 1970s showed how oil can fuel inflation and shape economic policy. The petrodollar system, in which oil transactions are settled in U.S. dollars, has further cemented oil’s role in global finance, ensuring sustained demand for the dollar and influencing U.S. foreign policy.
Bitcoin: Bitcoin’s potential as a reserve asset stems from its decentralized nature, limited supply (21 million BTC), and resistance to monetary devaluation. Unlike gold and oil, which require extensive infrastructure, Bitcoin can be transferred globally within minutes and stored at minimal cost. As institutional adoption grows, Bitcoin’s strategic value as a hedge against inflation and sovereign debt is becoming increasingly apparent.
Source: cointelegraph
The Future of the U.S. Government's Bitcoin Policy
The political moves suggest that the establishment of a strategic Bitcoin reserve could position this digital asset alongside traditional reserves such as gold and oil in the future.
In January 2025, President Donald Trump signed an executive order titled “Strengthening America’s Leadership in Digital Financial Technology,” establishing the President’s Task Force on Digital Asset Markets. The aim of this initiative is to explore the possibilities of creating a national stock of digital assets.
Based on this initiative, on March 7, Trump signed a new executive order establishing the “Strategic Bitcoin Reserve” and the “American Digital Asset Pool” with the goal of positioning the U.S. as a global leader in the cryptocurrency space. These reserves will be funded exclusively from cryptocurrencies seized during criminal investigations, which means that taxpayers’ funds will not be used for further purchases of cryptocurrencies.
However, the strategic Bitcoin reserve will be funded primarily by funds already held by the government, which have been seized through asset seizures, rather than through new government purchases.
This approach has sparked mixed reactions. While some see this as a positive step towards accepting digital assets, others express concern about the lack of new investment and the potential consequences of using confiscated assets. As of March 10, 2025, Bitcoin’s value had fallen by more than 5% to approximately $79,515, reflecting market disappointment over how the reserve was funded.
Looking ahead, the US government’s policy towards Bitcoin is likely to continue to evolve. By July 2025, the Presidential Task Force is expected to present recommendations that could have an impact on future regulatory frameworks, investment strategies, and the integration of digital assets into the broader financial system.
As global interest in cryptocurrencies grows, the U.S. is likely to further adjust its policies to balance innovation with economic stability and security, while keeping gold and oil reserves as key financial pillars.
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