The New School archive

Archived newsletter, originally published February 24, 2025. Prices and views are as of that date. Research, not advice.

The New School Edition #15: Bitcoin as a National and State-Level Reserve: The Global FOMO Effect

The New School Edition #15: Bitcoin as a National and State-Level Reserve: The Global FOMO Effect

· Original LinkedIn post

The world just took a major step toward Bitcoin’s mainstream adoption, and the ripple effects could be historic. Texas is leading the charge on a state level and Donald Trump’s recent deliberations about a possible U.S. Strategic Bitcoin Reserve, the race for digital asset accumulation has officially begun. The implications stretch far beyond American borders, triggering a global FOMO environment that could redefine economic strategy for nations worldwide.

Texas Takes the First Step

Lieutenant Governor Dan Patrick recently introduced Senate Bill 21, aiming to establish a Strategic Bitcoin Reserve for Texas. What is the motive for such a move? The motive is to diversify the state’s financial holdings, protect against inflation, and future-proof Texas’s economy by integrating Bitcoin into its reserves. This move signals a major shift in institutional attitudes toward Bitcoin, demonstrating that even local governments are beginning to see it as a viable store of value.

While Texas may be leading the charge on the state level, it’s Donald Trump’s talks of establishing a national Bitcoin reserve that are sending shockwaves through financial and geopolitical circles. When the US officially begins allocating government funds to Bitcoin, the U.S. has essentially declared it as a strategic asset on par with gold. This is a monumental shift from previous skepticism, misinformation, rigging, deliberate sabotage, and regulatory attacks. This paradigm change is one that will have lasting effects on global monetary policy.

A FOMO Effect on a Global Scale

When a financial superpower like the U.S. signals a shift toward Bitcoin accumulation, other nations have little choice but to pay attention. The traditional economic order thrives on competitive positioning, and if Bitcoin is now seen as an essential part of national reserves, we can expect a domino effect of adoption.

1. Geopolitical Ramifications

2. The Risk of Being Left Behind

If Bitcoin becomes a global reserve asset, any country that fails to secure a sufficient supply now risks being priced out in the future. Governments that procrastinate could find themselves in the same situation as corporations that failed to invest in the internet in the 1990s. No nation state will knowingly let themselves be at a massive competitive disadvantage.

This shift also has major implications for traditional safe-haven assets like gold and U.S. Treasury bonds. If Bitcoin is now being considered a reserve asset, it will compete with these traditional stores of value, forcing institutional investors and central banks to reassess their portfolios.

What’s Next?

The global monetary system is at an inflection point. We are witnessing the early stages of a Bitcoin arms race. We are already seeing the beginning of this mentality as nations either are beginning to accumulate or are discussing the possible accumulation of their positions before it’s too late. The next few years will determine the scale at which Bitcoin cements itself as a foundational element of global finance. One thing has already become clear, it is definitely not just a speculative hedge against inflation anymore.

For investors, this shift presents a clear signal: accumulation is key. If governments and institutional players are preparing for a world where Bitcoin plays a strategic role, individuals should take note. The opportunity to front-run sovereign accumulation is now.

Final Thoughts

Bitcoin’s role as a strategic reserve asset is no longer a hypothetical. The U.S. and Texas are setting a precedent that will inevitably be followed by other nations. The fear of missing out isn’t just for retail investors anymore, it’s now a national and geopolitical concern. The question is: which country will be next to join the race?


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