Richard Teng Says Governments Missed Billions by Ignoring Bitcoin and Failing to Build Crypto Reserves

Over the course of the last decade, Bitcoin has grown from a niche experiment to a legitimate global financial asset. Within the span of about three years, all of a sudden, Bitcoin exploded in value from less than $1,000 in early 2017 to over $60,000 in 2024, forcing both investors and institutions to reconsider their notions of value, money and reserve strategy. Remarkably, at the same time, many governments sat on the sidelines, dismissing crypto as a passing fad or even outright banning it. 

But what if they had taken a more proactive approach? What if they had embraced change rather than resisted it? What if countries had accumulated Bitcoin and other crypto assets while they were still relatively inexpensive? Nations could have created strategic crypto reserves that would have substantially mitigated, or even avoided, periodic budget deficits and established a more secure long-term fiscal position. In this article, we are talking not only about what could have been, but we are discussing a missed opportunity that is becoming increasingly difficult to ignore.

What Are Strategic Crypto Reserves and Why Do They Matter?

Strategic crypto reserves refer to the deliberate accumulation of cryptocurrency assets, such as Bitcoin or Ethereum, by governments as part of their national reserves. Traditionally, countries hold assets like gold and foreign currencies to stabilize their economies and protect against external shocks. But in a world increasingly shaped by digital innovation, crypto could have served a similar, even superior, purpose.

Unlike fiat reserves that suffer from inflation, cryptocurrencies like Bitcoin are deflationary and decentralized. They’re not subject to the same monetary policies that debase traditional currencies. This makes them a powerful hedge against global economic volatility. Holding strategic crypto reserves would have meant giving national treasuries access to a high-growth, non-correlated asset, one that outperformed almost every other investment class over the past decade.

Could Bitcoin Adoption Have Closed Budget Deficits?

Let’s look at real numbers. Suppose a mid-sized country had invested just $1 billion in Bitcoin in 2015 when it was trading below $500. By 2024, that reserve would be worth more than $100 billion. Such gains could have made a meaningful impact on budget allocations, debt repayment, infrastructure, and even emergency funding.

For countries facing chronic fiscal gaps, this type of financial strategy could have been revolutionary. Instead of borrowing at high interest rates or cutting public spending, governments with early Bitcoin adoption could have funded development goals through the appreciation of their national crypto holdings. Several nations, especially those with volatile currencies, might have benefited immensely by shifting even a small percentage of their reserves into crypto assets.

Which Countries Took the Leap, and Which Missed Out?

El Salvador sparked interest in the crypto community back in 2021 when it became the only country in the world to adopt bitcoin as legal tender and allocate it to its national reserves. Critics opposed El Salvador’s use of bitcoin, however, the country’s holdings grew astronomically in bull markets and became another source of tourism, foreign investment, and technology innovation. The country’s irresponsibility, at the time, seems the strongest move in hindsight. 

In contrast, major economies like India, Germany, and the UK had the technological capacity and financing to do a similar thing, but they weren’t thinking outside the box. By evaluating the situation in hindsight, it seems like a missed opportunity for these governments to formulate a national crypto holding. Some of these countries even sold the crypto that they seized from legal seizures, which could have led to profit in the billions of dollars with Bitcoin’s continued rally.

Are Strategic Crypto Reserves Still a Viable Option?

Despite the missed opportunities of the past, the window hasn’t entirely closed. Governments can still begin building strategic crypto reserves, although the cost of entry is now higher. The key lies in long-term vision rather than short-term volatility. By allocating a modest portion of sovereign wealth or central bank reserves to digital assets, countries can future-proof their economies against inflation, devaluation, and systemic shocks.

The narrative around crypto has matured. It’s no longer just about speculation, it’s about smart strategy. With tools for custody, regulation, and taxation evolving rapidly, governments today are better positioned to handle the responsibilities of managing digital reserves. The argument isn’t about if nations should embrace Bitcoin adoption, but how fast they can act before the next wave of transformation leaves them behind.

Bitcoin as an Economic Lever, Not Just an Investment

The idea of holding strategic crypto reserves might have sounded bold five years ago, but today, it feels like a no-brainer in hindsight. Bitcoin’s growth story is not just about investor gains, it’s about a missed economic opportunity for governments worldwide.

By failing to build national crypto holdings, many countries not only lost out on financial gains but also gave up a seat at the table in shaping the future of global finance. As the digital economy expands, the sooner governments integrate crypto into their reserve strategies, the better positioned they’ll be in an increasingly decentralized world.