Bitcoin Reserve Could Call US Solvency Into Question Critic Says, VanEck Exec Fires Back: ‘This Is Loserthink’
By Benzinga
Nic Carter, Founding Partner at Castle Island Ventures, has expressed skepticism about the U.S. establishing a strategic Bitcoin reserve under the incoming Trump administration, citing risks to the dollar’s global standing.
What Happened: His view has sparked a sharp critique from Matthew Sigel, Head of Digital Assets Research at VanEck, who labeled Carter’s perspective as “Loserthink” in a pointed social media response.
In an interview with Bloomberg on Wednesday, Carter said that while he supports Bitcoin (CRYPTO: BTC), he does not believe it would be prudent for the U.S. government to signal a shift away from its current monetary system.
Carter discussed the nuances of what constitutes a “strategic reserve,” distinguishing between merely holding onto seized Bitcoin and actively acquiring more, as proposed by some legislation.
He noted that while the former could be expected under Trump’s policy of maintaining current Bitcoin holdings, the latter—specifically Senator Cynthia Lummis‘ bill to buy one million Bitcoin over five years—is unlikely to gain Congressional support.
“The U.S. is the issuer of the global reserve currency. We shouldn’t do something that would call into question our own solvency,” Carter stated, highlighting the potential risks to global markets if the U.S. were seen as moving away from the dollar.
He pointed out that while smaller nations like Bhutan or El Salvador might benefit from adopting Bitcoin, the same logic does not apply to the U.S. due to its pivotal role in the global financial system.
Also Read: MicroStrategy Chairman Michael Saylor Eyes’ Intelligent Leverage’ With Bitcoin Purchases
Why It Matters: Regarding Bitcoin’s recent price surge, which saw it briefly hit $108,000, Carter acknowledged the optimism around Trump’s crypto-friendly policies but warned of a potential market correction should expectations for a strategic reserve not materialize.
“The hardest thing about being a bitcoiner is you’re in the trade with a lot of delusional people,” he remarked, suggesting that the market might be pricing in overly optimistic scenarios.
In contrast, Sigel took to X to challenge Carter’s caution, stating, “This is Loserthink. Should the US Government avoid any signals of fiscal restraint, then? In fact, why pretend at all—let’s just print trillions more and see where that gets us.”
This retort suggests a critique of what Sigel perceives as an overly conservative approach to Bitcoin adoption, likening it to avoiding necessary fiscal discipline or innovation in monetary policy.
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Image: Shutterstock
