Core Insights - Bitcoin is expected to become a recognized reserve asset alongside gold within the next decade, although gold will maintain its lead in official holdings for the time being [1][3] - The U.S. dollar constitutes 57% of global reserves, but there are emerging signs of diversification, particularly with a notable decrease in China's U.S. Treasury holdings by $57 billion in 2024 [1][3] Group 1: Bitcoin and Gold Dynamics - Bitcoin and gold are seen as complementary hedges against inflation and geopolitical risks due to their scarcity and low correlation with other assets [2][4] - Gold reached a record high of $3,763, increasing over 40% year-to-date, indicating strong demand for precious metals [2] Group 2: Bitcoin's Volatility and Adoption - Bitcoin's volatility, which has historically hindered its status as a reserve asset, is decreasing, with its 30-day volatility hitting historic lows in August while prices exceeded $123,500 [3][4] - The adoption trajectory of Bitcoin is expected to mirror that of gold, transitioning from skepticism to widespread acceptance, facilitated by regulation and macroeconomic trends [4]