North Carolina is pushing forward a bill to study holding Bitcoin

[thecodebear]

The state house of North Carolina just passed a bill to study the idea of the state holding Bitcoin (as well as Gold).

https://cointelegraph.com/news/north-carolina-house-passes-bill-to-study-bitcoin-hodling


If this bill gets passed, and North Carolina does indeed start holding Bitcoin, that will be the start of what I see as inevitable - states/nations eventually holding bitcoin in reserve just as nations hold large amounts of gold in reserve. Hopefully they become the first state in the US to do this and others follow their lead. El Salvador of course has led the way for the world, but its good to see a US state starting to think about holding Bitcoin. States and nations will eventually join the race to accumulate bitcoin along with 'retail investors', the wealthy, financial firms, banks, and corporations.

[un_rank]

"On June 28, the North Carolina House of Representatives passed the bill which would commission a $50,000 study to examine “acquiring, securely storing, insuring, and liquidating” both gold bullion and “virtual currency [...] such as Bitcoin.”

This part of the article is very unclear. I study Bitcoin for free with so many resources most of which are free or require just a little payment.
Their interest is good but it is still very early to decide on what direction they would go as the bill is only for studying the possibilities. If it is positive they would have to pass another one to actually acquire it.

- Jay -

[mk4]

It's pretty meh — it's just a study, like funding a thesis paper on bitcoin and digital currencies. It's not a bill that North Carolina will start holding bitcoin or something like that. Probably good(even when just slightly), but nothing close to major.

But whatever. Baby steps, I guess?

[ZAINmalik75]

Holding of 50k$ in BTC to examine the volatility in comparison of Gold. Does not looks like a good comparison in specific property of volatility but if they compare them in terms of hedge against inflation, scarcity, demand, supply, profit and loss ratio them I am sure they will find BTC a winner.

But things can change if BTC will go down in coming days and what if they went into loss, like will they ban Crypto fully in their state. Like in the month of March 2023, there were several restriction on crypto. It would also result as a good factor to increase the BTC price too in future if BTC win the battle against gold in their organized competition.

[bittraffic]

They may already have some BTC if they are starting to think it's going to benefit the state.
If you have been watching some BTC conspiracy theories behind BlackRock buying BTC, where they are saying that the financial institution is trying to take over crypto. It's not gonna be far fetch that states and countries are also going to be in the race to acquire BTC as well.

What could the purpose of the study after that but to determine whether it's beneficial for the state, Ofc it's beneficial. It's beneficial to an individual and will it be for a state.

[SamReomo]

I don't think that it's a good idea to do something like this because it's a fact that Bitcoin is way more volatile than gold, and the volatility could be the cause of huge gains or losses within shot period as compare to gold. The gold isn't that much volatile and that's why it many not lose or gain a lot of value in short period. This type of experiment will favor gold if the crypto market dumps, and it will only favor Bitcoin if crypto market pumps.  Such type of studies will most probably favor gold as a less volatile and secure asset.

The result will most probably be in favor of gold because if this study is for short period, and unfortunately Bitcoin gets another dump in coming days then the value of their holdings that are in Bitcoin will be way lower than the ones they have in gold. Let's say if they have allocated $25k for gold and $25k for Bitcoin, and if an unsudden market crash takes place, and the value of Bitcoin goes back to $27k then the value of their holdings in Bitcoin will be $22,140, and that would be very low as compare to the holdings they have in gold.

[Z-tight]

What could the purpose of the study after that but to determine whether it's beneficial for the state, Ofc it's beneficial. It's beneficial to an individual and will it be for a state.

If a state is going to buy BTC, they will make the purchase with public funds, so it is a difficult decision to take with a heavier impact if it does not work out the way they wanted it, so that is why the study is important. The lawmakers know that whatever decision they take will have an impact on the entire state, that's why they have to be very careful. Even before an individual buys BTC, they are advised to do their research, that research is the purpose of this study by North Carolina.

[Silberman]

What could the purpose of the study after that but to determine whether it's beneficial for the state, Ofc it's beneficial. It's beneficial to an individual and will it be for a state.

If a state is going to buy BTC, they will make the purchase with public funds, so it is a difficult decision to take with a heavier impact if it does not work out the way they wanted it, so that is why the study is important. The lawmakers know that whatever decision they take will have an impact on the entire state, that's why they have to be very careful. Even before an individual buys BTC, they are advised to do their research, that research is the purpose of this study by North Carolina.

Even more than that politicians care about one thing, public opinion, if they were to buy bitcoin and the the price of bitcoin went down, you can be sure their political opponents will immediately attack them for the huge mistake that it was to buy bitcoin and influence a great deal of voters during the next election to not vote for a their opponents that are making people to lose money, more than anything that is what worries them and in a way they are right as politicians care about the power they can get and nothing else.

[dothebeats]

This is like investment 101 bill. At least, the NC legislators are trying to help their people get educated in money matters. Not a lot of government entities want their people to get educated in investments and all that stuff, because if they do, they'd surely put some initiatives that tackle about investments and how to be financially literate in schools. I say that this bill is actually quite helpful if anything, especially if it's taught in schools as the kids are growing up.

[BitcoinPanther]

I don't think that it's a good idea to do something like this because it's a fact that Bitcoin is way more volatile than gold, and the volatility could be the cause of huge gains or losses within shot period as compare to gold. The gold isn't that much volatile and that's why it many not lose or gain a lot of value in short period. This type of experiment will favor gold if the crypto market dumps, and it will only favor Bitcoin if crypto market pumps.  Such type of studies will most probably favor gold as a less volatile and secure asset.

It is a study so I do not think it is a bad idea.  At least if they found that holding Bitcoin is beneficial to the states, they can escalate the study to realization of the states holding Bitcoin for future gain.

The result will most probably be in favor of gold because if this study is for short period, and unfortunately Bitcoin gets another dump in coming days then the value of their holdings that are in Bitcoin will be way lower than the ones they have in gold. Let's say if they have allocated $25k for gold and $25k for Bitcoin, and if an unsudden market crash takes place, and the value of Bitcoin goes back to $27k then the value of their holdings in Bitcoin will be $22,140, and that would be very low as compare to the holdings they have in gold.

Remember Bitcoin is about to enter the Bull run in the coming months.  If the bill is approved before the bull run starts, it will surely outperform the gold market.  There is no need for your worries, regardless if they see that Bitcoin is not a good investment, noting is lost there since they had been on that stance since the beginning but if Bitcoin performs well, and they acknowledge that Bitcoin is beneficial for the states then Bitcoin will gain something from the experiment and that is being adopted by a state and that will possibly bring FOMO to the market.

[Minhxx]

If this bill is passed, the bitcoin price will be as stable as gold, will slow growth still attract many investors???
This is good news if passed, bitcoin will always go up because the total supply of bitcoin is unaddable

[Hispo]

Very unlikely a state of the United States of America would start to hold Bitcoin as part of their treasury, because in the end the federal government would rather people and institutions to stop adopting BTC in favor of their own centralized national currency, which I assume they expect to launch as soon as they can, like China.

So, they can study all they want and decide whether they want to hold certain asset, it does not mean much, at least, for now.
However, I won't deny that a state of the USA actually adopting BTC this way would be huge news.

[goldkingcoiner]

The state house of North Carolina just passed a bill to study the idea of the state holding Bitcoin (as well as Gold).

https://cointelegraph.com/news/north-carolina-house-passes-bill-to-study-bitcoin-hodling


If this bill gets passed, and North Carolina does indeed start holding Bitcoin, that will be the start of what I see as inevitable - states/nations eventually holding bitcoin in reserve just as nations hold large amounts of gold in reserve. Hopefully they become the first state in the US to do this and others follow their lead. El Salvador of course has led the way for the world, but its good to see a US state starting to think about holding Bitcoin. States and nations will eventually join the race to accumulate bitcoin along with 'retail investors', the wealthy, financial firms, banks, and corporations.

It might seem like a small step for them to take, to some people here, but I think this study will become a fundamental building block which will serve as an example and foundation in the future. Science is definitely not going to make a bad call on Bitcoin holding since history shows us only positive things. I have never heard of a bad holding experience. Only when people sell at a loss or when centralized crypto exchanges are concerned, does Bitcoin seem to have a negative look in the news and social media. But thats all superficial and has no effect on the value of Bitcoin, long term.

[Jating]

Nah, it's just small amount though, and I don't think that they can just come up with a conclusion that holding bitcoin is good.

Just like El Salvador, up to this day, there are still a lot of people who opposes Bukele's move specially when they started to lose money on their balance sheet. But what if bitcoin goes on a bull run next year?

How much is that $50k? - xxx,xxx or more? can they conclude then that bitcoin is the best asset to hold and not gold?

[hd49728]

The state house of North Carolina just passed a bill to study the idea of the state holding Bitcoin (as well as Gold).

If this bill gets passed, and North Carolina does indeed start holding Bitcoin

No, if the bill gets passed, North Carolina state will do their study, not start to hold Bitcoin.

From study to another bill to hold Bitcoin for the state is a long procedure which won't be finished quickly. You can have more reasons to buy Bitcoin without such news because a high hope you have with such news, a more disappointment you will have later.

Rather than playing your emotion with such news, let's focus on fundamentals of Bitcoin and do your investment plan.

[jeraldskie11]

If this bill is passed, the bitcoin price will be as stable as gold, will slow growth still attract many investors???
This is good news if passed, bitcoin will always go up because the total supply of bitcoin is unaddable

Based on market structure, we are in a bullish market in the weekly time period. However, the volume has not been the same since 2021, creating a significant market momentum. And I believe that now is the moment to invest in Bitcoin. If the bill gets approved, I believe it will attract more investors, causing the price of Bitcoin to rise and possibly reach a new high potentially hit $37k. Technical analysis is effective, but Fundamental analysis goes beyond that. If this happens, it will be a fantastic news for Bitcoin.

[Husires]

Isn't it necessary for Bitcoin to be considered a legal tender in the country before thinking about keeping Bitcoin as a reserve, or do laws in the United States allow governments to keep commodities as reserves?The countries that will adopt Bitcoin will increase in the coming years, but I do not expect that Bitcoin will be on this list during the next 50 years, and perhaps it will be the last country to consider Bitcoin as a reserve currency next to the dollar.

[Don Pedro Dinero]

This part of the article is very unclear. I study Bitcoin for free with so many resources most of which are free or require just a little payment.

It is simply the bureaucratic way the institutions work. In order to adopt certain measures they require a prior study and they commission someone who is supposedly prestigious on the subject to do a study.

But whatever. Baby steps, I guess?

Yes, the first baby step on a long road if they finally get to buy and hold bitcoin.

[Darker45]

It's pretty meh — it's just a study, like funding a thesis paper on bitcoin and digital currencies. It's not a bill that North Carolina will start holding bitcoin or something like that. Probably good(even when just slightly), but nothing close to major.

But whatever. Baby steps, I guess?

At the very least, it shows interest, a rather serious one I guess. It's the house of representatives. They're spending money for it. Quite a considerable baby step.

But this one will still have to go through another battle in the senate. After which, the governor will still decide whether to sign it or not. So, this is actually far from saying the state will be buying Bitcoin.

The mere fact, however, that the state's lower house is willing to spend money to study the potential benefits of holding Bitcoin speaks a lot. It's a huge recognition of Bitcoin's legitimacy.

[DapanasFruit]

This is a good move. Hopefully, the study can find more rewards than risks in holding Bitcoin as we know that it is a very volatile asset unlike gold which is moving slowly. Anyway, this is just a study but then again this shows that more and more institutions even coming from the government side are now showing strong interest on cryptocurrency and how they can be able to take a good ride with the waves. Well, the timing is right and hope they take a good move in getting some BTC as soon as possible.