Charles Hoskinson founder of Cardano recently (June 2025) floated the idea of creating a ‘Bitcoin Reserve’. He proposed swapping $100 million of ADA, Cardano’s native currency for the most popular crypto in the world, Bitcoin.
The idea broadcast on a YouTube livestream sparked both admiration and criticism. While the idea is in the early stages there is still a long way to go for this to be implemented, if at all.
In this article, we look at the potential impact on entrepreneurs should this idea come to pass.
Here goes…
What Is the Cardano Bitcoin Reserve Idea?
Hoskinson spoke in detail on a livestream about converting 5-10% of the Cardano treasury to purchase assets such as Cardano native stablecoins and Bitcoin.
He proposed that this could potentially create a yield on the investment thereby giving the ability to generate income from the proposal and offer the ability to buy back and replenish the invested ADA over time.
The added bonus as proposed by Hoskinson is the idea would present a “stable floor” for the treasury and the Cardano network and act as a stable safety net or capital buffer for the Cardano ecosystem.
Implications for Entrepreneurs
Start-ups building projects on Web3 often rely on native tokens as both a fundraising tool and for operational capital. Unfortunately, this exposes these projects to the volatility of cryptocurrency.
The strategy proposed by Hoskinson could have the effect of:
Spreading the risk of ecosystem volatility
Boosts project sustainability
Offers a potential hedge during a downturn
Of course, projects themselves could hold their own reserves in Bitcoin or stablecoins to help preserve their assets but the move proposed by Hoskinson aims to give ecosystem-wide protection should the cryptocurrency market move to the downside.
The idea follows similar plans floated by governments such as the U.S. Bitcoin Reserve, Pakistan and political parties in the UK, notably Reform UK, who have all announced plans to make Bitcoin a part of their ‘Crypto Reserve Plans’
Companies such as Michael Saylor’s Strategy (MSTR) are buying up Bitcoin at an unprecedented rate and at the time of writing (June 2025) the price of BTC has dropped below $100,000 per Bitcoin due to conflicts in the Middle East .
The clear surge of interest in the adoption of Bitcoin by nation-states, private companies and high-net-worth individuals gives some weight to Hoskinson’s arguments.
The move could also bolster and signal trust to those outside the Cardano ecosystem and with recent announcements that Cardano wishes to attract Bitcoin liquidity via its Defi projects this move could also act as a catalyst for Bitcoin holders to gain trust in Cardano and use its network to generate yield on their stored Bitcoin.
Read our article on the U.S. Government Crypto Reserve Plans here:
Read our article on Cardano’s Bitcoin plans here:
The Risks
Although the proposal offered by Hoskinson offers many benefits there are some potential risks.
The main risk is that altcoins such as Cardano are highly correlated to the price of Bitcoin. Generally speaking, if the price of Bitcoin goes up so does the price of Cardano. If the price of Bitcoin drops, it is highly likely the price of Cardano and other altcoins will drop too.
Critics of Bitcoin and proponents of gold, such as Peter Schiff have warned of the dangers of massive exposure to Bitcoin and have advised holders of Bitcoin and the Bitcoin-exposed Strategy shares (MSTR) to sell.
Schiff’s criticism has recently been justified since precious metals have skyrocketed in volatile markets with gold hitting all-time highs and silver geared up to follow suit. Gold for example has increased 36% over the last year.
Read our article on why entrepreneurs should consider Gold and Silver here:
In volatile times gold and possibly silver are historically known to hold value while Bitcoin is yet to prove itself during severe economic downturns amid global instability.
The other risk associated with a Bitcoin reserve is one of security. As the value of Bitcoin potentially rises, the attraction for ‘bad actors’ to hack associated ecosystems also increases.
Recently, (May 2025) crypto exchange Coinbase was hacked and held to ransom. This hack cost Coinbase an estimated $400 million dollars.
As the popularity of Bitcoin grows, so does the requirement for security measures to prevent hackers accessing large Bitcoin holders.
Stablecoins do offer some level of protection but it has been known for stablecoins to unravel and ‘de-peg’ during times of economic uncertainty or volatility. Terra Luna is a case in point.
There is also the potential that holding large Bitcoin reserves could attract regulators who may view the offering of yield on such reserves as a security.
Final Thoughts
Hoskinson’s proposal is certainly innovative. The move could offer some protection in uncertain times and offer some stability to founders building on Web3 amid global turmoil.
However, it should be noted by entrepreneurs that altcoins and Cardano are heavily correlated to Bitcoin. If the price of Bitcoin were to drop dramatically the price of Cardano is more than likely to drop considerably too.
Stablecoins offer some level of protection, however, it has been known for stablecoins to unravel during market volatility in the past.
All in all, the idea appears sound if it meets regulatory requirements and the yield is not deemed a security. Hoskinson’s proposal to earmark only a small percentage, 5-10% of Cardano reserves appears reasonable.
The proposal ties in with the vision of Hoskinson for Cardano to become a DeFi layer for Bitcoin and could potentially encourage Bitcoin holders to trust the Cardano ecosystem to generate yield on their Bitcoin holdings.
Entrepreneurs who embrace this vision could see high returns as Bitcoin holders pump large amounts of liquidity into Cardano and the price of Cardano could increase accordingly.
Only time will tell if this proposal is implemented and if it works in practice.
In the meantime, entrepreneurs should protect their projects themselves in uncertain economic times by diversifying any reserves accordingly.
Good luck!
***Disclaimer: This article is not financial advice and is given for informational purposes only. Readers should conduct their own research and not invest more than they can afford to lose. Crypto is extremely volatile, and as such can drop in value considerably without notice. You should always seek legal advice to understand if the use or investment in crypto is allowed in your jurisdiction.
Pop Up World token has a growing ecosystem.
Pop Up World YouTube Reviews:
Review. Malik Atif – Hindi -Urdu
Review. Inside Crypto – Hindi – Urdu
Review. Convincing Crypto – English
The Pop Up World Token is designed specifically for entrepreneurs, to store value and to utilise on our platform Pop Up World. Join the revolution in financial freedom today.
Get the token on Cardano Decentralised Exchanges (DeXs), MuesliSwap, SundeSwap, Wingriders and Minswap. Or click the link here:
Pop Up World token has a growing ecosystem
Earn and help support the Pop Up World Blog and entrepreneurs worldwide by joining our Pop Up World Stakepool! Go to https://popupworld.co.uk/popupworldstaking
Thanks!
Want to learn how to stake on Cardano? Read this article:
It starts with an idea. Pop Up World is a platform that helps start-ups and small businesses reach for the stars. No matter what size you are. Use our start-up guide Business Zero to Superhero, Design your Logo. Connect with investors via our Investor Connector. You can start a Website and Domain name. You can Search for and promote your Premises. You can promote your idea for free on our Pop Up World Ads site, you can even form a Limited Company You can also join us on our journey via the Pop Up World Token (PUW).
Pop Up World Blog 