How would a US bitcoin strategic reserve work?

Sub: Eco

Sec : Monetary Policy

Context:

Bitcoin reached a record high of over $107,000 on Monday after President-elect Donald Trump reiterated plans to establish a U.S. Bitcoin strategic reserve, which boosted enthusiasm among crypto advocates.

What is a strategic reserve:

A strategic reserve is a stock of a critical resource which can be released at times of crisis or supply disruptions.
The best-known example is the U.S. Strategic Petroleum Reserve, the world’s largest supply of emergency crude oil, which was created by an act of Congress in 1975 after a 1973-74 Arab oil embargo throttled the U.S. economy.
Other countries, like Canada, have reserves for unique resources such as maple syrup, and China maintains strategic reserves of metals, grains, and pork products.

About Bitcoin:

Bitcoin is a cryptocurrency first used in 2009. The bitcoin record uses Blockchain technology.
Bitcoin is a type of digital currency that enables instant payments to anyone. Bitcoin is based on an open-source protocol and is not issued by any central authority.
Cryptocurrency is a specific type of virtual currency, which is decentralised and protected by cryptographic encryption techniques. Bitcoin, Ethereum, Ripple are a few notable examples of cryptocurrencies.
The origin of Bitcoin is unclear, as is who founded it. A person, or a group of people, who went by the identity of Satoshi Nakamoto are said to have conceptualised an accounting system in the aftermath of the 2008 financial crisis.

Benefits of a Bitcoin Reserve:

Creating a bitcoin reserve would help the U.S. dominate the global bitcoin market in the face of growing competition from China.
Holding a stockpile of Bitcoin, which could appreciate over time, might help the U.S. reduce its budget deficit without raising taxes.
This would also strengthen the U.S. dollar, providing more economic leverage over foreign adversaries such as China and Russia.

Risks of a Bitcoin Reserve:

Critics argue that, unlike traditional commodities, Bitcoin lacks intrinsic value and is not crucial to the functioning of the U.S. economy.
Bitcoin is known for its extreme price volatility, which could cause significant fluctuations in the U.S. reserves, impacting the broader economy.
Crypto wallets are often targeted by cybercriminals, and the U.S. would need to safeguard its Bitcoin holdings from potential cyberattacks.