US vs. China: Trump's Aide Predicts New Bitcoin Space Race

US vs. China: Trump's Aide Predicts New Bitcoin Space Race

The growing importance of bitcoin as an international reserve asset could trigger a new "space race," where global powers such as the U.S. and China compete for dominance in the cryptocurrency space, according to David Bailey, a cryptocurrency policy advisor to President-Elect Trump. This new race could see only a few countries securing significant bitcoin reserves, with the U.S. and China leading the charge.

Trump's Crypto Aide Foresees Bitcoin Space Race Between U.S. and China

David Bailey, a key advisor to President-Elect Trump's campaign and CEO of BTC Inc., believes that the rise of bitcoin under Trump’s pro-crypto stance could ignite a competitive race among nation-states to control the cryptocurrency. Bailey predicts that the U.S. and China will be the primary contenders in this new "bitcoin space race," with China replacing Russia as the main rival to the U.S.

Bailey shared his thoughts on social media, stating:

"Right now there are two bitcoin superpowers, USA and China. There’s probably room for 2-3 more, and that’s it."

At present, the U.S. is the largest holder of bitcoin among nation-states, with nearly 200,000 BTC in its wallets. China, despite its anti-crypto stance, follows closely behind with an estimated 190,000 BTC. These reserves have primarily come from seizures related to criminal activities and illicit organizations, not through voluntary means.

Bailey suggested that only two or three additional countries might join the ranks of these "tier-one" bitcoin holders, each accumulating over seven figures of BTC. He also predicted that up to 30 other nations could form a second tier, holding six figures of bitcoin. Countries that fall outside of these tiers, according to Bailey, will struggle to accumulate more than five figures of BTC.

Bailey emphasized that the opportunity for new countries to join this elite group is limited and urged the U.S. to act quickly in securing a strategic bitcoin reserve before other nations move ahead.

In November, Bailey called for U.S. authorities to act decisively, warning that delays could result in the U.S. being overtaken by competitors in this emerging financial race.