Why don't US gov buy a trillion worth of bitcoin?

[DaftAjax]

What is the downside?

Isn't it pretty obvious? A government, in my opinion, should not buy any Bitcoin, hoping that they could manipulate Bitcoin's price. And even if they could buy tons of it doesn't mean they should. 99% of the government's funds are from tax, thus from the citizens of the country.

If this ever happened and be realized in public(?), expect rage from people. Even rebellion or coup de ta.

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[teosanru]

We all know the US gov rules, dictate to rest of the world.
So if they cornered the btc market, afterwards the btc price could only go up, factor with this  a few btc friendly directives, and a massive coup would have been achieved.
What is the downside?

Actually, this is easier said than done. Us government isn't an autonomous body which can do whatever it wants. It is directly elected by general public and therefore accountable to general public which means that they have some protocols to follow. Moreover on the hidden side governments is actually made by some clever politicians, cunning bureaucrats and wealthy industrialists. Now, investments of government and that also in such large volumes can't be hidden for long and once public it can lead to a huge dispute and disappointment among people who think btc is.a. Highly volatile and risky investment. This is the reason us government isn't doing any such thing.

[target]

They will not openly say they own or buying stash of BTC like Venezuela did but they will just keep milking those crypto projects and probably in the future will collect tax in BTC.  They could collect more BTC than buying worth trillion from US funds in the long run but they will never tell the world the list of exchanges that are backed by government.

To outsiders, bitcoin is a risky investment. To a lot of insiders too, they're happy scalping than holding large amounts of bitcoin just in case we go to 0 tomorrow.

First World governments have the power to buy a lot of bitcoin, but a similar power to crash it to zero tomorrow... If the US government openly buys into it, what stops the Russian or Chinese governments from crashing it and starting a monetary war?

Make sense too. I can only see the Chinese are ahead of its time already.

[bitbunnny]

And why would any government do that? How would they justify to spend such huge amount of money for something that can't be part of financial system and can't benefit the country and at the same time they would need to accept the huge risk. And how would they explain that decision to people who elected them, for whar purpose they did that?
Sometimes I think that children are writing posts on this forum.

[Astvile]

That's a foolish thing to do for a government who is well developed and powerful like the US government. USD is what they are focusing on and they don't care about bitcoin at all let's say some of the officials do have bitcoin yes that's undeniable for sure there are some who are interested in bitcoin there. USD is the one who made US government powerful so why would they shift their interest in buying bitcoins?

[pieppiep]

That's a foolish thing to do for a government who is well developed and powerful like the US government. USD is what they are focusing on and they don't care about bitcoin at all let's say some of the officials do have bitcoin yes that's undeniable for sure there are some who are interested in bitcoin there. USD is the one who made US government powerful so why would they shift their interest in buying bitcoins?

Yes, but the fact is we don't know if they don't care about bitcoin or not. The government doesn't have to announce to the public that they are buying bitcoin because they can buy bitcoin secretly, and no one will know. For something that will make a big profit, I am sure that they will interest in bitcoin and they will buy at a low price in a lot of amounts.

But if they don't interest in bitcoin because they cannot control it, then it doesn't stop the other governments to buy bitcoin because they are free to buy or not to buy. The government can say they don't buy bitcoin, but in off the record, they already buy from a few years ago.

[CherylltheBombshell]

US will not take the risk buying trillion worth of bitcoin without getting valuable in return. Of course they knew that bitcoin doesnt have fixed value so why? We all know US status they’re more advance and had great value with their market.

[bryant.coleman]

And why would any government do that? How would they justify to spend such huge amount of money for something that can't be part of financial system and can't benefit the country and at the same time they would need to accept the huge risk. And how would they explain that decision to people who elected them, for whar purpose they did that?
Sometimes I think that children are writing posts on this forum.

LOL.. you are right. Some of the users still live in a fool's paradise, thinking that Bitcoin is some magic wand that can make them billionaires overnight. I am a big supporter of Bitcoin, but at the same time I am not foolish enough to believe that there is no world outside BTC. Users needs to be realistic about their expectation from the Bitcoin, and unfortunately some of them don't want to do that.

Now coming to the American public spending, it can't be used to purchase cryptocurrency. Every penny of spending needs to be approved by the House, and will be audited later by independent third parties. If someone uses it for the purchase of cryptocurrency, then the media will go ballistic alleging insider trading and links with criminal organizations.

[bounceback]

maybe they US government doesn't want to buy a lot of bitcoin because they think more of their people so no one is starving and they might be
want to build some infrastructure for the benefit of the US people because the government must consider its people rather than having to invest by buying bitcoin and they are also thinking of increasing their own currency (US dollars).

[pjcaruci]

Because they don't want to take risks, they want to make passive profits without investing a cent in bitcoin

[timerland]

Because if they would do that, it's like they're going against on what they're saying. Just recently when Trump said something against cryptoccurency and how it could just cause criminal activities. Meaning, he doesn't support crypto so basically the government wouldn't buy bitcoin.

Imagine saying a lot of things against crypto yet you're one of those who buy bitcoin as well. They don't even promote crypto because obviously they're for fiat, the one they can control.

If the government will buy trillion worth of btc, it's like they're showing to everyone the worth of btc.

They could do some OTC trades and then probably avoid a lot of press action, but it would almost be impossible to keep any amount over 10 million private and unknown to the public.

Trump has declared they don't want anything to do with it and that's probably the main reason they don't to touch the currency.

[Wysi]

maybe they US government doesn't want to buy a lot of bitcoin because they think more of their people so no one is starving and they might be
want to build some infrastructure for the benefit of the US people because the government must consider its people rather than having to invest by buying bitcoin and they are also thinking of increasing their own currency (US dollars).

As adoption or investment into bitcoin will eventually make US Dollars look week and drop the value of US Dollars and the US government does not want to lose it and they consider bitcoin as indirect threat to their fiat currency which any country would think,  moreover USA has been involved in some controversial  decisions to stop gold from becoming international currency to avoid any loss to USA and they will never invest in bitcoin.

[Realroy]

LOL.. you are right. Some of the users still live in a fool's paradise, thinking that Bitcoin is some magic wand that can make them billionaires overnight. I am a big supporter of Bitcoin, but at the same time I am not foolish enough to believe that there is no world outside BTC. Users needs to be realistic about their expectation from the Bitcoin, and unfortunately some of them don't want to do that.

i so agree, i mean, people think no matter what, bitcoin is going to turn their pennies into billions. but what people don't realize is, it's just a probability just like any other trading instrument. why would a government of such a powerful nation, spend billions and trillions on something, that has no base, no responsibility taker or whose price is so uncertain.

[Mandoy]

There are conspiracy theories that the reknowned Mr. Satoshi Nakamoto was the US government itself through the CIA. This implies that the USA have a large bag holding of bitcoin. If that is true then they have huge savings but let us not stick to that.

Lets go back to reality and the question of why the US government does not buy a trillion worth of bitcoin?


Here is the reason why. THe US government does not need to buy bitcoins because it just uses its authority to seize large amounts of bitcoin being used in illegal activities. Some of the bitcoins were auctioned and it was a trending topic years ago that 1 billion dollars worth of bitcoin was auctioned by the US government. Also we do not know how much bitcoin the US government holds since its hard to trace owners of bitcoin just by looking at the addresses.

[karanggatak]

im sure if government and maybe famous people have bitcoin. but none know about it. we never know if bank buy bitcoin too?
i dont have idea if someone or party or country buy a lot of bitcoin, for what? if they can take more profit after buy, its ok. but how if bitcoin price low and they cant take profit.

[boltz]

They already have bitcoin's from all the bust they did to hackers as I don't think they put all of them into an auction. Also I think they bought long time ago Bitcoin's and they simply hold it to use it a way to boost their economy or this is what I hope they will do like any other country who is holding Bitcoin and any other cryptocurrencies.

The Nakamoto conspiracy being a CIA agent is too much in my opinion as people will invent anything to draw some attention towards them with a story like that.

[skarais]

im sure if government and maybe famous people have bitcoin. but none know about it. we never know if bank buy bitcoin too?
i dont have idea if someone or party or country buy a lot of bitcoin, for what? if they can take more profit after buy, its ok. but how if bitcoin price low and they cant take profit.

Right, that's very possible. Those who have a high financial level and who are behind ranks and positions in government are very likely to buy one bitcoin or even more bitcoin if they want. Those who have an investment spirit will look for bitcoin, because this commodity is very profitable. Do they save it and invest long term, it is all their free will.

[ChrisPop]

I assume that they need to justify their purchases and Bitcoin is not quite cheap. Also I don't think there is enough liquidity in the market to purchase massive amount and OTC desks don't possess that kind of liquidity either. Moreover once the world sees that USA govt. started stacking Bitcoins what do you think the other countries will do? - Will follow of course and create a snowball effect sky rocketing the price of bitcoin.

[febriyana]

Why must buy Bitcoin if they are hate about cryptocurrency?
Bitcoin is based on decentralized. So they can't control the price and also have limited supply.
Opposite with fiat they can create it as much they want, price can they control.
So they prefer to protect fiat and trying regulate cryptocurrency maybe want kill it.

[darkangel11]

I assume that they need to justify their purchases and Bitcoin is not quite cheap. Also I don't think there is enough liquidity in the market to purchase massive amount and OTC desks don't possess that kind of liquidity either. Moreover once the world sees that USA govt. started stacking Bitcoins what do you think the other countries will do? - Will follow of course and create a snowball effect sky rocketing the price of bitcoin.

They do. Buying Bitcoin would raise questions. Who agreed to it? Who is lobbying for Bitcoin in the government? Maybe those politicians don't believe in the usd? Maybe if they don't believe they know something and are trying to dump some of their paper money for digital gold?
A government buying Bitcoin is on a way to panic, hyperinflation, losing voter support, and more. Most governments that admit their fiat is doing bad try something like this. Look at Venezuela.