Rumor: Trump could declare a Bitcoin strategic reserve

[CryptoBuds]

With all this saga, I keep wondering why Trump finally had a sudden change of mind towards Bitcoin. Why all the sudden praise for Bitcoin, or was it that he never realized it when he first ran for president in 2017? There was a BBC report in 2021 in which he clearly stated that he doesn't like Bitcoin because it's competing with the dollar. If Bitcoin is declare as a strategic reserve, what are the chances that it will not still compete with the dollar, which was Trump's fear in 2021?

"Bitcoin, it just seems like a scam," Mr Trump said. "I don't like it because it's another currency competing against the dollar."

The world politics have made me to understand that, we don't have to go by what politicians say because they can stand against something today, by tomorrow they have a change of mind, stating their support on the same thing they stood against before.

Trump is always good at saying what people would like to hear. By tomorrow, he can still say something contrary to Bitcoin that he is supporting today. I trust him on that.

The very aim of every politician is to do whatever it takes to win the election, even if it means lying to the masses. It doesn't matter cos they can have every little thing fixed, corrected, and settled on their terms the moment they become president

We don't need to understand them or believe completely what they say but look at the situation we are in. We only have two choices, one is the democratic party or the republican party and as we have seen what is happening is what the democratic party is doing. They have no intention of being crypto-friendly as they continuously let the SEC wage war on crypto and we will never know what will continue to happen to us if they stay in power. Meanwhile, we don't know what will happen if Trump is elected, but at least he is publicly supporting cryptocurrency and that is a point that Biden has not once done. It has been reported that Gary Gensler will resign if Trump is elected, isn't that a good sign?

[slaman29]

Don't care Trump or Biden or whatever president, but watershed reserve sounds like too much of a huge step forward.

Federal Reserve would never allow it, so I think they will ensure all the politicians never pass such a proposal.

USD will crash and burn even earlier than we expected if this really happens!

The rumor doesn't state how much Bitcoin used for reserve though. I recall another politician suggest similar thing, while stating only up to 1% to reduce risks. If the rumor is true, i expect trump have similar idea.

1% is over 7 billion dollars worth of Bitcoin, almost 0.5% of Bitcoin market cap.

That's still a hell lot of Bitcoin reserves to start with. I think just in my simple mind it's enough to start the end of USD being taken seriously in long term.

But anyway, never gonna happen right.

[Wind_FURY]

Don't care Trump or Biden or whatever president, but watershed reserve sounds like too much of a huge step forward.

Federal Reserve would never allow it, so I think they will ensure all the politicians never pass such a proposal.

USD will crash and burn even earlier than we expected if this really happens!

But they don't have a choice in my opinion. Bitcoin through it's nature and design, could weaken political strongholds. The U.S. WILL NEED to compete with other nations in HODLing the cryptocurrency if nations such as El Salvador are HODLing it, or if nations such as Iran are mining it, and using it as their exporting medium for their Crude Oil. Germany made a very foolish decision selling billions worth of Bitcoin.

[Lucius]

~snip~
Germany made a very foolish decision selling billions worth of Bitcoin.

Doesn't anyone read anymore? There was no decision involved, that's the law - and that's how it is in most countries that have clearly defined laws on seized property. It's unbelievable that people think that $3 billion or even twice that amount has any impact on such a large economy as Germany.

All the BTC that has been mined so far is only worth about 25% of Germany's annual GDP...

It's not the country of Germany that's been selling millions of dollars worth of bitcoin, but a small German state called Saxony. The state confiscated almost 50,000 BTC in January and has been selling its holdings as per standard practice for assets seized during criminal investigations, an expert said.

[anarkiboy]

Oh yeah, using Bitcoin - a Chinese mined coin on Chinese hardware with a doomed security model as a strategic reserve for the USA  
I doubt they are this dumb.

[Wind_FURY]

~snip~
Germany made a very foolish decision selling billions worth of Bitcoin.

Doesn't anyone read anymore? There was no decision involved, that's the law - and that's how it is in most countries that have clearly defined laws on seized property. It's unbelievable that people think that $3 billion or even twice that amount has any impact on such a large economy as Germany.

All the BTC that has been mined so far is only worth about 25% of Germany's annual GDP...

It's not the country of Germany that's been selling millions of dollars worth of bitcoin, but a small German state called Saxony. The state confiscated almost 50,000 BTC in January and has been selling its holdings as per standard practice for assets seized during criminal investigations, an expert said.

OK relax ser. But I believe a prosecutor ordered the sale, no? If that's actually true, then the prosecutor could have also delay the sale, or probably not order the sale at all.

BUT it was also GOOD that they did the sale. It illustrated that the market has enough liquidity to take a large amount of supply in a short amount of time.

Oh yeah, using Bitcoin - a Chinese mined coin on Chinese hardware with a doomed security model as a strategic reserve for the USA  

I doubt they are this dumb.

Worse things were said, but Bitcoin continues to prove everyone wrong.

[Poker Player]

Oh yeah, using Bitcoin - a Chinese mined coin on Chinese hardware with a doomed security model as a strategic reserve for the USA  
I doubt they are this dumb.

Just with your choice of nickname it was already clear that you are not exactly the most appropriate to give lessons about dumb people.

What is valuable is valuable, period. A ton of 24 karat gold, no matter if it was mined and produced in China, using Chinese machinery, is worth its weight in gold. This is the same thing.

And how stupid you are, you haven't even noticed that the miners left China years ago to go to the USA. You retard.

[buwaytress]

Just with your choice of nickname it was already clear that you are not exactly the most appropriate to give lessons about dumb people.

Shh, don't take the bait You know it's a good sign when the trolls are back!

What is valuable is valuable, period. A ton of 24 karat gold, no matter if it was mined and produced in China, using Chinese machinery, is worth its weight in gold. This is the same thing.

Fungibility ftw, yeah? That said, I do recall a decade or so ago same quality gold but from different minting sources were worth more. I suppose illegally mined gold or stolen gold is also worth a little less to the first seller. I do say this with absolutely no research heh

[Poker Player]

Shh, don't take the bait You know it's a good sign when the trolls are back!

Do you mean anarkiboy is an alt account?

Fungibility ftw, yeah? That said, I do recall a decade or so ago same quality gold but from different minting sources were worth more. I suppose illegally mined gold or stolen gold is also worth a little less to the first seller. I do say this with absolutely no research heh

Minting sources usually have more to do with coins than with bars, because many coins, apart from the value of their weight in gold, usually have numismatic value. But even in some bars, which are more expensive depending on who mints them, if you sell them they pay you the same for their weight in gold regardless of who minted them.

And whether it is illegally mined or stolen, there is no way of knowing. Nowadays gold is sold in blister packs and if you are going to sell your coins or bars with the blister pack they will usually give you a little more than if you bring the gold unwrapped. But that counts for stolen gold as well as gold that you took the blister off and gold that was inherited or bought so long ago that it was sold without blister.

[Finestream]

Don't care Trump or Biden or whatever president, but watershed reserve sounds like too much of a huge step forward.

Federal Reserve would never allow it, so I think they will ensure all the politicians never pass such a proposal.

USD will crash and burn even earlier than we expected if this really happens!

That could also be possible knowing this central bank of the US is known to be the most powerful economic institution so most likely whatever the decision made through bitcoin, it’s still up to them if they will allow or approve it, but the fact that it could somehow bring USD down and elevate bitcoin, they will never accept that kind of set-up.

[BALIK]

Don't care Trump or Biden or whatever president, but watershed reserve sounds like too much of a huge step forward.

Federal Reserve would never allow it, so I think they will ensure all the politicians never pass such a proposal.

USD will crash and burn even earlier than we expected if this really happens!

That could also be possible knowing this central bank of the US is known to be the most powerful economic institution so most likely whatever the decision made through bitcoin, it’s still up to them if they will allow or approve it, but the fact that it could somehow bring USD down and elevate bitcoin, they will never accept that kind of set-up.

I agree with slaman29's point of view more, this is just Mr. Trump's idea, not that of Congress or the Fed and we know the Fed has never mentioned or shown interest in bitcoin. So I believe that if Trump proposed, the Fed would find a way to stop this immediately and as far as I know, the national reserves are under the control of the Fed, the US government has no decision-making power. Like the amount of gold reserves that the US holds, more than 8 thousand tons of gold are stored by the Fed, not the government.

Additionally, I don't think it's a wise idea to use an asset with a fairly small capitalization and high volatility as a reserve asset. They will face huge risks, so I don't think this idea will be adopted and become a reality, although I also support Trump's election this time.

[Lucius]

OK relax ser. But I believe a prosecutor ordered the sale, no? If that's actually true, then the prosecutor could have also delay the sale, or probably not order the sale at all.

It is not clear to me that the majority of people on this forum (and in general) think that the German government has anything to do with the decision to sell or not sell the seized BTC - it is not something they decide on, and I believe that the majority had no idea that this was happening at all. The decision to sell came in accordance with the law on seized property and was initiated by the province of Saxony, which only followed the law.

BUT it was also GOOD that they did the sale. It illustrated that the market has enough liquidity to take a large amount of supply in a short amount of time.

It is even stranger that people think that 50k BTC can have a significant impact on the market, especially when we have spot ETFs that can remove those same BTC from the market in 2-3 days.

[Wind_FURY]

Oh yeah, using Bitcoin - a Chinese mined coin on Chinese hardware with a doomed security model as a strategic reserve for the USA  
I doubt they are this dumb.

Just with your choice of nickname it was already clear that you are not exactly the most appropriate to give lessons about dumb people.

What is valuable is valuable, period. A ton of 24 karat gold, no matter if it was mined and produced in China, using Chinese machinery, is worth its weight in gold. This is the same thing.

And how stupid you are, you haven't even noticed that the miners left China years ago to go to the USA. You retard.

Plus with that "produced in China" debate + Bitcoin as a censorship-resistant cryptocurrency that could weaken political strongholds - the more cause for the U.S. to start doing something to attract more hashing power within their borders. I believe that in the future, we'll see nation-states/governments competing for who among them HODLs Bitcoin most and which region accommodates the most hashing power.

[slaman29]

Germany made a very foolish decision selling billions worth of Bitcoin.

As I did say much further above or in different post, kinda like @Lucius said. This was just normal procedure. They weren't hodling or gambling like Microstrategy does with Bitcoin, they were simply selling (liquidating) because it's seized funds. If it was gold, they would do the same, or USD, same.

This was money they suddenly had, I think they were very happy and we should be happy it's all sold and BTC is above 65k!

[Maslate]

With or without Trump, this has always been the original plan for bitcoin. Even if we don’t see it as a global currency, at least we can utilize it as a reserved one. However, with Trump around, having him as an instrument to achieve bitcoin’s original design might now come into possibility. But we all know the process might not be that fast and easy, as Trump’s government if he will luckily win soon, will still gain an approval with the Federal Reserve  and I think this is quite something that requires a lot of discussion before it will be approved and be granted.

[OgNasty]

I think I’m still in shock that a President of the United States is going to speak at a Bitcoin conference. That’s extremely wild to me. I don’t think I would have believed that this could happen a dozen years ago. This cycle will either be the ultimate top for Bitcoin, or we could be looking at the future currency of mankind.

[NotATether]

We should go all in now. Bitcoin bull run is now confirmed if the news comes true.

Bitcoin always goes up at election time whether or not a candidate speaks at a Bitcoin conference. It's just that this time it might go up sooner than expected.

I think I’m still in shock that a President of the United States is going to speak at a Bitcoin conference. That’s extremely wild to me. I don’t think I would have believed that this could happen a dozen years ago. This cycle will either be the ultimate top for Bitcoin, or we could be looking at the future currency of mankind.

Future currency of mankind it's looking like. Most people have not even bought their shares of Bitcoin yet, and scarcity is what makes the Bitcoin price rise higher. The next bull run will definitely activate many of these people. (In the USA.)

[justdimin]

Don't care Trump or Biden or whatever president, but watershed reserve sounds like too much of a huge step forward.

Federal Reserve would never allow it, so I think they will ensure all the politicians never pass such a proposal.

USD will crash and burn even earlier than we expected if this really happens!

That could also be possible knowing this central bank of the US is known to be the most powerful economic institution so most likely whatever the decision made through bitcoin, it’s still up to them if they will allow or approve it, but the fact that it could somehow bring USD down and elevate bitcoin, they will never accept that kind of set-up.

It's true, FED would never allow it. I mean the whole point of its existence is to make USD strong, that is what they are working towards every single day, if they could, they would never print any money, make it scarce so that the price of it would go up. They can't, because the rich folks who own them need money so they print it whenever they want it, but at the same time we have to realize that things won't be that easy.

The problem is that we are talking about an institution that is working towards making it possible for USD to grow, and if we want USD to grow, BTC reserves is not the way to go. Trump can't make that happen unless he gets the greenlight from wealthy lobbyists, if those do greenlight it then it can be done, but in that case it is not really anything Trump does, those wealthy blackrock type of companies could lobby for it whoever is the president, meaning that if they want this, they could have done this during Biden period too, or can do it on Kamala period as well, doesn't really matter at all.

[Wind_FURY]

Germany made a very foolish decision selling billions worth of Bitcoin.

As I did say much further above or in different post, kinda like @Lucius said. This was just normal procedure. They weren't hodling or gambling like Microstrategy does with Bitcoin, they were simply selling (liquidating) because it's seized funds. If it was gold, they would do the same, or USD, same.

This was money they suddenly had, I think they were very happy and we should be happy it's all sold and BTC is above 65k!

I wasn't debating that it shouldn't be normal procedure, but the prosecutor's decision to sell the Bitcoin should have been reconsidered because it was foolish. Why is it foolish? I already said it - Bitcoin's nature as a censorship-resistant cryptocurrency that could weaken political strongholds. Nation-states will need to HODL Bitcoin. If El Salvador had the same opportunity to seize billions worth of Bitcoin from criminals, what would they do?

[Lucius]

I wasn't debating that it shouldn't be normal procedure, but the prosecutor's decision to sell the Bitcoin should have been reconsidered because it was foolish. Why is it foolish? I already said it - Bitcoin's nature as a censorship-resistant cryptocurrency that could weaken political strongholds. Nation-states will need to HODL Bitcoin. If El Salvador had the same opportunity to seize billions worth of Bitcoin from criminals, what would they do?

You are mixing completely different realities, because El Salvador is a small country in Central America that doesn't even have its own national currency (they gave up their currency 20+ years ago) and are dependent on the USD, so the experiment with BTC is not too much of a problem for them.

Countries like Germany, the UK, the US or any major country that has an annual budget in the trillions of $ or EUR have no need to gamble with Bitcoin - because everything is great when the price rises, but what about when we find ourselves in a bear market and the price of BTC loses more of 50% of its value? Each of these countries will prefer to invest in gold, which from the position of each major country makes far more sense than investing in Bitcoin.

I doubt that Satoshi invented BTC to help states, he invented it to help ordinary little people have an alternative to the system that states represent.