US national bitcoin reserve fund....?

[The Sceptical Chymist]

I think it’s pretty awesome that they are thinking about this strategic fund but today I read somewhere that the senator was suggesting we sell gold to buy Bitcoin?

That is stupid.  It is stupid to think Bitcoin would help in any way strictly with the repayment of the U S Debt too.  It is as if they were gambling Bitcoin to try and win the Jackpot.  But instead of retiring, the end goal is to repay the Debt.

I just saw this link from a post on CMC, and I swear I hope April Fools' Day has come twice this year, because using taxpayers' dollars to fund bitcoin purchases is just downright irresponsible on the government's part.  Trump might be pro-bitcoin and that's great and all, but what would happen if his administration set a fixed price for it, much like gold many years ago when it was worth exactly $20/Oz? 

Think that couldn't happen?  All of you people saying this is a great plan better put on your critical thinking caps or at least realize that bitcoin and governments should not mix.  I'm not saying there shouldn't ever be any regulations or the like, but as far as a superpower country owning a lot of bitcoin....what could go wrong?

[Wonder Work]

I'm partly of the idea that government shouldn't enter into the business of investing. Every penny that the government has should be spent. Whatever the government has should be used to serve and invest in its people. It isn't their business to make money. It's their business to look after the welfare of the people.

Yes, you are right or it is not right for the government to enter any business on its own it will not be right because when the government finds a system to invest in its own business then it will be for itself. The government of a country never has a chance to look at itself alone because its work is about the country and the people of the country. The government will always see everything that is beneficial to its country as a profit for its investment this is right but it will not be right for it to invest alone in any business field.

However, many countries have investment funds, sovereign funds, wealth funds, or whatever you call it. If they have such, why can't they indeed invest in BTC?

Despite having funds they are not able to invest because they haven't been able to trust BTC till now. If they had understood that there is trust in BTC then maybe they would not have kept their funds like this they would have invested them. Maybe they are waiting for something more positive towards BTC if they see something more positive about Bitcoin then maybe they can be expected to move towards investment.

[Sandra_hakeem]

I'm curious as to what you all think about this article, this idea, or anything related to it.  Me?  I think it's total BS (though definitely bullish), but I tend to scoff at most crap that gets published online, especially if it's financial news--but I never rule out the possibility that I'm being a moron.

I don't think it's entirely BS per se-- I just feel even if it's happening, it may not be just about the same proportion in this article or anywhere else...

I dunno who TF Satoshi was, but his/their intentions aren't as concealed as his/their identity is... There's a possibility that the new revolutionary store in value would bid a higher price than this one.
I don't know for a fact if the US government would certainly get 5% as this might just be a disclaimer (correct me if I'm wrong), but I do know that everyone else would certainly follow suit.

Trump might be pro-bitcoin and that's great and all, but what would happen if his administration set a fixed price for it, much like gold many years ago when it was worth exactly $20/Oz? 

This is just gonna get the whole thing fucked!!! Volatility is one open but secret rule that has kept Bitcoin above every damned currency.

I'm not saying there shouldn't ever be any regulations or the like, but as far as a superpower country owning a lot of bitcoin....what could go wrong?

The moment this becomes a political affair and is weaponized against another county's economy, with alot of politically affiliated rules, it's gonna FAIL!
Bitcoin = freedom!

[ultrloa]

I think it’s pretty awesome that they are thinking about this strategic fund but today I read somewhere that the senator was suggesting we sell gold to buy Bitcoin?

That is stupid.  It is stupid to think Bitcoin would help in any way strictly with the repayment of the U S Debt too.  It is as if they were gambling Bitcoin to try and win the Jackpot.  But instead of retiring, the end goal is to repay the Debt.

I just saw this link from a post on CMC, and I swear I hope April Fools' Day has come twice this year, because using taxpayers' dollars to fund bitcoin purchases is just downright irresponsible on the government's part.  Trump might be pro-bitcoin and that's great and all, but what would happen if his administration set a fixed price for it, much like gold many years ago when it was worth exactly $20/Oz? 

Think that couldn't happen?  All of you people saying this is a great plan better put on your critical thinking caps or at least realize that bitcoin and governments should not mix.  I'm not saying there shouldn't ever be any regulations or the like, but as far as a superpower country owning a lot of bitcoin....what could go wrong?

Maybe more better for US government not to rush their decision to make bitcoin as their global reserve. They should study every possibilities at least 1 year then consult their plan to many concern institution or people so that they can get right inputs that can help make their reserve plan to became more effective.

Since if they rush just like that and use the tax payers money then maybe they might encounter a lot of problems especially if they see a massive correction which is a normal occurrence on bitcoin.

Its really a great plan but we also need to consider the implication of their plans since if they didn't get it right then maybe the government will hate bitcoin if they didn't get what they expect from it. Proper planning is important to make everything work according to what they like to happen.

[franky1]

ok lets play it out as if the 2025 BIS rules were implemented in 2023(btc price ~$25k/btc)

so US fed reserve has $250bill in reserves and allowed upto 5% of instable crypto(btc)
so thats $12.5bill allowed as btc, meaning they could have bought/obtained 500,000btc

this would mean to not breach the BIS limits:
by march 2023 they would need to sell some
so imagine they dropped 100,000k to allow a buffer for the price to get to $31,250 before needing to act again
by october 2023 they would need to sell some
so imagine they dropped 100,000k to allow a buffer for the price to get to $41,666 before needing to act again
by december 2023 they would need to sell some
so imagine they dropped 100,000k to allow a buffer for the price to get to $62,500 before needing to act again

so that alone would have been a 1 year buy up and drop of 500k btc -> 200k btc, where there would be 3 sell offs within that year of a large lump

but on the flip side, the gov is redistributing the coin and holding less coin as the price increases

and if played out to now where price is $90k/btc. the us fed reserve would only be allowed 125k btc to allow a $100k price buffer

 

[EarnOnVictor]

Has anyone seen this article?  Bitcoin has been getting a lot of mention on Yahoo Finance, some of it interesting, some of it not--but this write up had me scratching my head.

Thank you for bringing this up, at a point, I thought I was the only one who sees things beyond the selfish outlook of people, especially those outlooks that are not just feasible.

First, how possible is it for a country like the US to accept a decentralised asset as a reserve? The US I know likes to associate with what they can control, but unfortunately, Bitcoin is not one of them. Even Trump who has heated the space can't unilaterally do that, it must pass through enough political debates and Congress must pass it first, which I know will die on arrival because such a view is not a kind that aligns with the US vision. I wonder what will continue to happen to the USD if other countries follow the path (which I know they will). The US is smarter than that!

[franky1]

First, how possible is it for a country like the US to accept a decentralised asset as a reserve?

not 'as a reserve'.. but instead invest x% of the reserve in other assets.. US gov already invests in other assets they dont control, such as other nations bonds, other nations natural resources

[EarnOnVictor]

First, how possible is it for a country like the US to accept a decentralised asset as a reserve?

not 'as a reserve'.. but instead invest x% of the reserve in other assets.. US gov already invests in other assets they dont control, such as other nations bonds, other nations natural resources

You are right about the US government investing in other nations' bonds and even more, but we should not ignore the fact that these are centralised systems. They have the political power and economic rights for the countries to fulfil their obligations to them. This may not be a direct control but still the traditional way. Can we say the same about Bitcoin? The US will continue to tread carefully.

Again, the x% reserve you mentioned for another asset, is it not the same as depleting their reserve to buy another asset they will keep? Is that not reserving through another asset (Bitcoin)?

[FortuneFollower]

First, how possible is it for a country like the US to accept a decentralised asset as a reserve?

not 'as a reserve'.. but instead invest x% of the reserve in other assets.. US gov already invests in other assets they dont control, such as other nations bonds, other nations natural resources

Only time will tell how it goes for real.
It may go as EarnOnVictor said, or it may be the other way around.
But I think it would still be beneficial for the whole sentiment.
The question is how far Trump and the team would go to make something out of this whole situation.

[justdimin]

First, how possible is it for a country like the US to accept a decentralised asset as a reserve?

not 'as a reserve'.. but instead invest x% of the reserve in other assets.. US gov already invests in other assets they dont control, such as other nations bonds, other nations natural resources

You are right about the US government investing in other nations' bonds and even more, but we should not ignore the fact that these are centralised systems. They have the political power and economic rights for the countries to fulfil their obligations to them. This may not be a direct control but still the traditional way. Can we say the same about Bitcoin? The US will continue to tread carefully.

Again, the x% reserve you mentioned for another asset, is it not the same as depleting their reserve to buy another asset they will keep? Is that not reserving through another asset (Bitcoin)?

I am pretty sure that investing in other nations is also a way of diversification as well, if your nation does badly, while others do fine, then you get to make money from the other ones who are doing fine and you are not going that bad.

Why do you think most nations have dollars in their reserves? Because they trust that USA will do fine, at worst case, whenever they do too badly, they just go into a war, get resources of another poor nation, and make a lot of profit form it. Look at Iraq, they got back form there a lot richer, not in military sense, tax payers paid a lot, but the private companies made a killing there, literally, and then the growth of the nation was much bigger for a long time. If we look at El Salvador, we can see that they do have a reserve and they are doing pretty alright for their situation and I believe we can make a profit based on whatever we can see from there. USA could do the same, for a lot more money and could be richer.

[EarnOnVictor]

First, how possible is it for a country like the US to accept a decentralised asset as a reserve?

not 'as a reserve'.. but instead invest x% of the reserve in other assets.. US gov already invests in other assets they dont control, such as other nations bonds, other nations natural resources

You are right about the US government investing in other nations' bonds and even more, but we should not ignore the fact that these are centralised systems. They have the political power and economic rights for the countries to fulfil their obligations to them. This may not be a direct control but still the traditional way. Can we say the same about Bitcoin? The US will continue to tread carefully.

Again, the x% reserve you mentioned for another asset, is it not the same as depleting their reserve to buy another asset they will keep? Is that not reserving through another asset (Bitcoin)?

I am pretty sure that investing in other nations is also a way of diversification as well, if your nation does badly, while others do fine, then you get to make money from the other ones who are doing fine and you are not going that bad.

Why do you think most nations have dollars in their reserves? Because they trust that USA will do fine, at worst case, whenever they do too badly, they just go into a war, get resources of another poor nation, and make a lot of profit form it. Look at Iraq, they got back form there a lot richer, not in military sense, tax payers paid a lot, but the private companies made a killing there, literally, and then the growth of the nation was much bigger for a long time. If we look at El Salvador, we can see that they do have a reserve and they are doing pretty alright for their situation and I believe we can make a profit based on whatever we can see from there. USA could do the same, for a lot more money and could be richer.

What are you even saying? This is not related to this discussion in any way, I mean to my post you directly replied to. No one is saying the US is not investing in other countries' assets, just like @franky1 pointed to the country's investment in other countries' bonds, it is part of the QE (Quantitative Easing), a monetary policy to stimulate the economy. Diversification or not, are they not doing it in the traditional way they know? Is any of those investments in blockchain/decentralised systems?

[fruktik]

Think that couldn't happen?  All of you people saying this is a great plan better put on your critical thinking caps or at least realize that bitcoin and governments should not mix.  I'm not saying there shouldn't ever be any regulations or the like, but as far as a superpower country owning a lot of bitcoin....what could go wrong?

I support your idea. Bitcoin should not intersect with the state in any way. This is complete absurdity. If this happens, the government will become the largest owner of coins. And do you know what will happen then? These people in power will be able to dictate their own terms of the "game" to the crypto community. Ask yourself: "Do you need it?" That's what I'm talking about. This will all end badly. You'll see. You can't follow this scenario. It's dangerous.

[Fivestar4everMVP]

he scenario Tung describes grows even more intense if corporations join the race, such as BlackRock's speculated involvement. He asserts, "If four entities try to buy 40% of the supply...that alone will drive bitcoin into the millions." He highlights how limited the global supply of bitcoin is, mentioning that even smaller countries, like Bhutan and El Salvador, have already started acquiring significant amounts of bitcoin.

Fundstrat analyst Sean Farrell recently used the same logic to say he may need to adjust his $115,000 price target higher.

I'm curious as to what you all think about this article, this idea, or anything related to it.  Me?  I think it's total BS (though definitely bullish), but I tend to scoff at most crap that gets published online, especially if it's financial news--but I never rule out the possibility that I'm being a moron.

In the end, I think it's only newbies and OGs who still lack proper knowledge of the market will take such news as a financial advice, yeah, I appears bullish as fk but that's the purpose for the write up in the first place, to get your hopuim as up as possible.

I read stuffs like that and I simply smile, I enjoy reading them but I never allow that get into my head to influence my decision making.
Already, we who have been here for quite a long time should already know that Bitcoin's got a great future, so articles like this shouldnt come as a surprise to the extent of we getting too excited about it, for what will be will be, and bitcoin have come to be, the government and companies fighting over who's gonna hold the most bitcoins is their business, and also to my benefits because they will only be pumping my bag, so I just will sit down and watch 'em, one of the benefits and of investing in great innovations very early.

[Ever-young]

Fiat is not the best as a reserve or store of value not to mention the government creating more debt by printing more money.
Yes a scenario like this would be very bullish for Bitcoin and could create a kind of a ceiling that prices wouldn't fall lower than.
If a country starts something especially one as big as the US is successful
Other countries would want to do the same but all this are possible if US truly chooses to make Bitcoin a strategic reserve.

The US might be successful in that, but will other countries take the risk? Another thing that I also wonder is the negative implications of such an event; if it eventually does occur that strategic reserves for most countries are diverted to bitcoin, what will be next?

Easy price control and manipulation, where they can easily gang up and decide how they want the market to be reacting with little news of either selling or buying more, I'm just against this idea of government buying and holding a large percentage of Bitcoin all in the name of reserve. Their intentions are always biased; their buying news will bring bullishness to the market, but it's going to be temporary.

[SickDayIn]

I'm curious as to what you all think about this article, this idea, or anything related to it.  Me?  I think it's total BS (though definitely bullish), but I tend to scoff at most crap that gets published online, especially if it's financial news--but I never rule out the possibility that I'm being a moron.

Yes it's published content online, but this Bitcoin federal reserve fund isn't just sensationalist journalism, it's something Trump himself has discussed. I am bullish on it.