Matthew Sigel from VanEck suggests Bitcoin could rival gold as the global money standard, with the U.S. first leading the path.
Sigel, who serves as VanEck’s Head of Digital Assets Research, believes Bitcoin could become the foundation of a new monetary system, rivaling gold’s historic significance.
His comments, made amidst growing interest in the proposed U.S. Strategic Bitcoin Reserve, call attention to the pioneering crypto asset’s potential to influence a shift to digital assets among nations.
Sen. Lummis’ proposal to buy 1M Bitcoin (4.7% of supply) for a Strategic Bitcoin Reserve mirrors the gold market, where the US government holds ~4% of global reserves. pic.twitter.com/gxU0NCEm3s
— matthew sigel, recovering CFA (@matthew_sigel) January 10, 2025
Bitcoin as the Next Reserve Asset
Sigel pointed out that Senator Cynthia Lummis’ recent proposal to establish a Strategic Bitcoin Reserve mirrors the U.S. government’s gold holdings. For context, the plan suggests the acquisition of one million Bitcoin, equivalent to 4.76% of its total supply.
This figure is similar to the U.S. government’s current share of global gold reserves, which is about 4%. Sigel sees this as a signal that Bitcoin could assume a role similar to gold in the past, which involves serving as a universal reserve asset.
He further noted how gold reserves have played a role in defining economic power throughout history. Countries like the U.S., Germany, and China continue to hold substantial amounts of gold as a cornerstone of their financial systems.
Notably, Sigel’s commentary suggests that the U.S. could lead a new era where digital assets form the backbone of global finance if President-elect Donald Trump’s plan of embracing a Bitcoin reserve follows through. Lummis recently highlighted such a scenario.
Echoes of the Gold Standard Era
Sigel also drew parallels between the adoption of gold standards in the 19th century and the potential rise of a Bitcoin standard.
He shared a chart highlighting how countries like Great Britain (1821), Germany (1871), and the U.S. (1873) adopted gold as a basis for their monetary systems. In a similar way, he sees Bitcoin presenting the opportunity to establish a “digital standard” for money in the 21st century.
The move toward a Bitcoin reserve could make the U.S. a leader in this shift. It may also trigger a competitive race among nations to adopt digital assets. Just as countries sought to accumulate gold during the industrial age, nations may now compete to secure Bitcoin.
Growing Global Interest in Bitcoin Reserves
Meanwhile, the idea of holding Bitcoin as a reserve asset is not unique to the U.S. El Salvador has already adopted Bitcoin as legal tender and integrated it into its financial system. The country purchases 1 BTC a day to bolster its reserve but pushed this up to 11 BTC on Jan. 8.
Lawmakers in other countries such as Russia, Switzerland and Brazil are already exploring similar initiatives following Donald Trump’s election victory.
In the U.S., several states are also looking into establishing Bitcoin reserves. Lawmakers in Pennsylvania and Texas have also taken steps to explore cryptocurrency investments.
Despite the interest, reactions remain mixed. Advocates like Sigel see it as a way to modernize monetary systems. However, critics warn of Bitcoin’s volatility. Notably, BlackRock failed to support the proposal.
