Everything you wanted to know about Bitcoin Strategic Reserve

[Kelward]

Thanks @Fillippone, for giving clarity with proof of what strategic reserve really means and how it relates to BSR, it's an educative exposition for everyone to grasp. I'm perticularly excited about how the table has turned around in less than 15 years of Bitcoin existence, how almost everybody and countries generally thought that it was a scam and won't last but today that naretive is changing very fast.

Having Bitcoin as strategic reserves by cities, institutions and governments will go a long way to show those that are still skeptical that Bitcoin is indeed a store of value and they're welcome to enjoy the benefits of holding it for a long term. I believe that if Trump, implements favorable Bitcoin policies in his incoming administration, especially having it as a strategic reserve, it'll go a long way to encourage other countries to do the same because the US is a pacesetter. Also if the top cities that are proposing BSR will implement it, then it might become a norm for other cities to strive and do the same.

Since Bitcoin has finite supply, the effect of holding it as strategic reserves will be scarcity which will be an added factor for it's continuing price increase and ATH in the future.

[BlackHatCoiner]

Navigating your mind about this does look like that, where not a little old money in America says Bitcoin Scam

The enemy is not no-coiners. I don't care about a bunch of fools who don't understand basic economics. My concern goes to the money masters of America. Those people have historically used everything in their disposal to keep the world under a fiat standard, and now out of nowhere, the president promises the people bitcoin, a currency that completely undermines the purpose of fiat currency across the world. Something just doesn't add up.

[LoyceV]

My concern goes to the money masters of America. Those people have historically used everything in their disposal to keep the world under a fiat standard, and now out of nowhere, the president promises the people bitcoin, a currency that completely undermines the purpose of fiat currency across the world. Something just doesn't add up.

A Bitcoin Reserve doesn't mean they'll create a Bitcoin Standard, just like having Gold Reserves does't mean there's a Gold Standard.

If this is going to be anything like the way people lost their gold to government, there may be a time when you can deposit your Bitcoin into a government wallet, in exchange for a digital receipt on your account. Then government can artificially increase the amount of Bitcoin in circulation, just like they did with fiat money after they abandoned the gold standard. And a decade from now, suddenly there are much more Bitcoins in circulation on accounts with banks, and the value of a "paper Bitcoin" gets devaluated. Gold is worth about 100 times more now than it was when the gold standard was abandoned. Or better yet: the dollars you received in exchange for your gold can now buy about 1% of your gold back. If it's not obvious yet: I finally started reading The Bitcoin Standard ebook.
Maybe "Not your keys, not your coins" works better to keep your own money than it did when people handed over their gold coins.

[franky1]

My concern goes to the money masters of America. Those people have historically used everything in their disposal to keep the world under a fiat standard, and now out of nowhere, the president promises the people bitcoin, a currency that completely undermines the purpose of fiat currency across the world. Something just doesn't add up.

A Bitcoin Reserve doesn't mean they'll create a Bitcoin Standard, just like having Gold Reserves does't mean there's a Gold Standard.

If this is going to be anything like the way people lost their gold to government, there may be a time when you can deposit your Bitcoin into a government wallet, in exchange for a digital receipt on your account. Then government can artificially increase the amount of Bitcoin in circulation, just like they did with fiat money after they abandoned the gold standard.

your definition is much more like depositing bitcoin into a subnetwork hub channel manager, and then play with unconfirmed units that are not in the same measure/format of real sats. and then the peg rate changes over time from 1sat=1000msat to then be 1sat=1000000msat. and then when enough naive noobs are playing with msats on the subnetwork. they make it too expensive, and a headache to close out the account to get confirmed real sats, thus forcing people to stay with playing with msat
.. oh wait that economy was already trying to be implemented by institutions that sponsored core devs who promote and adore the subnetwork roadmap

but the actual strategic reserves is not about giving citizens a pegged currency of bitcoin, but instead invest fiat in another currency to later sell for profit and return to fiat for later fiat spending by the government/institution

[Free Market Capitalist]

there should be a maximum limit to the quantity of Bitcoin that can be reserved by any county in the interval of one cycle.

Lol. What you're asking for is like hard-coding KYC in the Bitcoin protocol. Let's not do that. If anyone wants to try to buy all Bitcoins: let them. That's the beauty of a free market.

It seems to me that if Agbamoni starts from the mindset of setting limits, he will not be very much in favor of letting the free market regulate itself.

The enemy is not no-coiners. I don't care about a bunch of fools who don't understand basic economics. My concern goes to the money masters of America. Those people have historically used everything in their disposal to keep the world under a fiat standard, and now out of nowhere, the president promises the people bitcoin, a currency that completely undermines the purpose of fiat currency across the world. Something just doesn't add up.

For me it adds up. The one who talks about the strategic reserve believes in the free market, believes in a small state and low taxes. Banning CBDCs to me is as important as a strategic reserve, which is not often mentioned and which we have under preparation in Europe. Both are a logical consequence of how the US president-elect and those around him see the world.

A Bitcoin Reserve doesn't mean they'll create a Bitcoin Standard, just like having Gold Reserves does't mean there's a Gold Standard.

That's right, the US does not need a standard bitcoin at all, nor will it do so.But by acquiring the largest bitcoin reserves in the world, it will strengthen its currency without it being directly backed by bitcoin.

[Callido]

Navigating your mind about this does look like that, where not a little old money in America says Bitcoin Scam

The enemy is not no-coiners. I don't care about a bunch of fools who don't understand basic economics. My concern goes to the money masters of America. Those people have historically used everything in their disposal to keep the world under a fiat standard, and now out of nowhere, the president promises the people bitcoin, a currency that completely undermines the purpose of fiat currency across the world. Something just doesn't add up.

I understand from your points of reasoning, the US community and administration is not an ease pass when it comes to decision makings and regulations. The new administration to hold power under Trumps regime may not be the actual wolves in sheep's clothing but with due passive adoption and how it has triggered lot's of new investors to hold, some of these investors do not practically understands the work load on maintaining a decentralized portfolio that is out from the control of this administration. The more the government act like they care the easier it becomes for them to chip in certain regulations because many people are already being too convenient with the new adoption.

[JayJuanGee]

Navigating your mind about this does look like that, where not a little old money in America says Bitcoin Scam

The enemy is not no-coiners. I don't care about a bunch of fools who don't understand basic economics. My concern goes to the money masters of America. Those people have historically used everything in their disposal to keep the world under a fiat standard, and now out of nowhere, the president promises the people bitcoin, a currency that completely undermines the purpose of fiat currency across the world. Something just doesn't add up.

I would think that there is going to be an attempt to harness and control bitcoin, but that does not mean that the attempt is going to be successful.  Surely, the more and more that bitcoin is held in the hands of BIGGER institutions, then there may be attempts to make self-custody illegal and/or very difficult... but that does not mean that they are going to be successful in that, either.

I agree with your insinuation that the battle is not over, and it is likely going to take a long time to play out, including ups and downs along the way and ongoing casualties.

My concern goes to the money masters of America. Those people have historically used everything in their disposal to keep the world under a fiat standard, and now out of nowhere, the president promises the people bitcoin, a currency that completely undermines the purpose of fiat currency across the world. Something just doesn't add up.

A Bitcoin Reserve doesn't mean they'll create a Bitcoin Standard, just like having Gold Reserves does't mean there's a Gold Standard.

If this is going to be anything like the way people lost their gold to government, there may be a time when you can deposit your Bitcoin into a government wallet, in exchange for a digital receipt on your account. Then government can artificially increase the amount of Bitcoin in circulation, just like they did with fiat money after they abandoned the gold standard. And a decade from now, suddenly there are much more Bitcoins in circulation on accounts with banks, and the value of a "paper Bitcoin" gets devaluated. Gold is worth about 100 times more now than it was when the gold standard was abandoned. Or better yet: the dollars you received in exchange for your gold can now buy about 1% of your gold back. If it's not obvious yet: I finally started reading The Bitcoin Standard ebook.
Maybe "Not your keys, not your coins" works better to keep your own money than it did when people handed over their gold coins.

Surely self-custody is not going to be easy for governments (and financial institutions) to control, but the difficulty in trying to control self-custody does not mean that governments and/or financial institutions aren't going to try accomplish such.  They might not have any other route that they believe to be feasible, rather than just giving up..and totally embracing it without conditions..

[justdimin]

Thanks @Fillippone, for giving clarity with proof of what strategic reserve really means and how it relates to BSR, it's an educative exposition for everyone to grasp. I'm perticularly excited about how the table has turned around in less than 15 years of Bitcoin existence, how almost everybody and countries generally thought that it was a scam and won't last but today that naretive is changing very fast.

Having Bitcoin as strategic reserves by cities, institutions and governments will go a long way to show those that are still skeptical that Bitcoin is indeed a store of value and they're welcome to enjoy the benefits of holding it for a long term. I believe that if Trump, implements favorable Bitcoin policies in his incoming administration, especially having it as a strategic reserve, it'll go a long way to encourage other countries to do the same because the US is a pacesetter. Also if the top cities that are proposing BSR will implement it, then it might become a norm for other cities to strive and do the same.

Since Bitcoin has finite supply, the effect of holding it as strategic reserves will be scarcity which will be an added factor for it's continuing price increase and ATH in the future.

That is the part I have witnessed first hand and I am loving it. When I first got into bitcoin, and told people that I have a few bitcoins, they all thought I was buying drugs with it, and I hated that, and now they are all investing into memes like crazy lol. That's the type of turn around that I love to see, same people who looked at me like I am some drug dealer, ended up getting PEPE and invest like half of their salary into some silly meme token or something, it is so funny to see that and mock them about it as well.

It's clear that world of crypto has evolved around, and not just technically, while technically we have developed and invested into better stuff as well, that's not the main point and not the result neither. The main point is that we are seeing much better approach right now with what people think about when they see bitcoin investor, and back in the day it was a lowly thing, nowadays it is a much better and respected thing to do and I love that about bitcoin.

[BlackHatCoiner]

A Bitcoin Reserve doesn't mean they'll create a Bitcoin Standard, just like having Gold Reserves does't mean there's a Gold Standard.

Having gold is not equivalent to buying gold. The gold reserves in Fort Knox are not kept as an investment or as a justification to pay out the 40 trillion dollars worth of debt when gold reaches $1M / oz. They're kept for legacy reasons. But, buying bitcoin as a plan to pay out the debt, clearly encourages everyone to follow, and do the same with their debt. This week I read that Japan and Thailand are thinking of either buying bitcoin as strategy or propose a legal tender.

If it's not obvious yet: I finally started reading The Bitcoin Standard ebook.

Fantastic book, and fantastic trilogy. (Fiat standard, Principles of Economics.)

I would think that there is going to be an attempt to harness and control bitcoin, but that does not mean that the attempt is going to be successful.  Surely, the more and more that bitcoin is held in the hands of BIGGER institutions, then there may be attempts to make self-custody illegal and/or very difficult... but that does not mean that they are going to be successful in that, either.

The best strategy they have, in my opinion, is to buy all the bitcoin. There's no other endgame. Putting themselves in the top of bitcoin holders would make it much easier to re-establish their position as money masters.

[Churchillvv]

A Bitcoin Reserve doesn't mean they'll create a Bitcoin Standard, just like having Gold Reserves does't mean there's a Gold Standard.

Having gold is not equivalent to buying gold. The gold reserves in Fort Knox are not kept as an investment or as a justification to pay out the 40 trillion dollars worth of debt when gold reaches $1M / oz. They're kept for legacy reasons. But, buying bitcoin as a plan to pay out the debt, clearly encourages everyone to follow, and do the same with their debt. This week I read that Japan and Thailand are thinking of either buying bitcoin as strategy or propose a legal tender.

It's clear that they don't really want bitcoin for what it is but only wants to use it as much as they can, infact price manipulation will become an obvious effect of making bitcoin a strategic reserve. The volatility of bitcoin wouldn't be normal anymore, it's always going to be in favour of one government or another leaving individual holders in an uncertainty. It's still not bad they big countries are proposing BSR but my big question always remains are we safe?

I would think that there is going to be an attempt to harness and control bitcoin, but that does not mean that the attempt is going to be successful.  Surely, the more and more that bitcoin is held in the hands of BIGGER institutions, then there may be attempts to make self-custody illegal and/or very difficult... but that does not mean that they are going to be successful in that, either.

The best strategy they have, in my opinion, is to buy all the bitcoin. There's no other endgame. Putting themselves in the top of bitcoin holders would make it much easier to re-establish their position as money masters.

I felt weird around this forum when I was saying things like this because everyone seems to have a very different perspective of governments especially the US government proposing BSR and I believe that your opinion will be their biggest play because obviously there no other strategy other there that can beat becoming the top holders.

[Promocodeudo]

This is the most bullish statement so far:

Trump Confirms Bitcoin Reserve Plans—$15 Trillion Price Boom Predicted

"We're gonna do something great with crypto because we don’t want China, or anybody else … but others are embracing it, and we want to be ahead,"]"We're gonna do something great with crypto because we don’t want China, or anybody else … but others are embracing it, and we want to be ahead,"

This is the interview mentioned in the article:




China has been gold. US want to be ahad because they are being beaten in the race at physical gold.

with this statement of his, I see a courageous man that have decided to make a huge good difference in Bitcoin investment  for Americans and Bitcoin enthusiasts in general, though those are just words but bold step at sight and very encouraging, I think for me trump stands for a no nonsense in terms of success pursuit, people may see those statement as nothing but coming from the world poweful president elect, it's a good win for Bitcoin and at this point anyome still being skeptical about Bitcoin investment is not doing him or herself good.

Trump doesn't want to joke with Bitcoin investment because he understands the importance of a nation identifying and having Bitcoin reserves for a long-term, he has proven that he is economically sound to have seen Bitcoin future potentials and wanting to embrace it in full, what grows a nation economy is by making good financial policies that has the ability to trigger a country economy in the future, for me I think Trumps statement show that he has idenfy what Bitcoin is capable doing if they consider having it as a reserve, he understands what it meant to have a long-term asset that is profitable in the future, he wants America to have Bitcoin reserves in quantum which is good for America and the entire Bitcoin community worldwide.

Those people still procrastinating to invest should start now before the will regret their actions in the future, Bitcoin is an investment of the future and anyone that want to come into Bitcoin investment should abide by those concept and apply them in other to scale through, Bitcoin has come to stay and I think the best thing anyone can be doing now is to keep acumulating and holding for a long-term benefit.

[Princess Leah]

This is the most bullish statement so far:

Trump Confirms Bitcoin Reserve Plans—$15 Trillion Price Boom Predicted

"We're gonna do something great with crypto because we don’t want China, or anybody else … but others are embracing it, and we want to be ahead,"]"We're gonna do something great with crypto because we don’t want China, or anybody else … but others are embracing it, and we want to be ahead,"

This is the interview mentioned in the article:




China has been gold. US want to be ahad because they are being beaten in the race at physical gold.

with this statement of his, I see a courageous man that have decided to make a huge good difference in Bitcoin investment  for Americans and Bitcoin enthusiasts in general, though those are just words but bold step at sight and very encouraging, I think for me trump stands for a no nonsense in terms of success pursuit, people may see those statement as nothing but coming from the world poweful president elect, it's a good win for Bitcoin and at this point anyome still being skeptical about Bitcoin investment is not doing him or herself good.

Trump doesn't want to joke with Bitcoin investment because he understands the importance of a nation identifying and having Bitcoin reserves for a long-term, he has proven that he is economically sound to have seen Bitcoin future potentials and wanting to embrace it in full, what grows a nation economy is by making good financial policies that has the ability to trigger a country economy in the future, for me I think Trumps statement show that he has idenfy what Bitcoin is capable doing if they consider having it as a reserve, he understands what it meant to have a long-term asset that is profitable in the future, he wants America to have Bitcoin reserves in quantum which is good for America and the entire Bitcoin community worldwide.

Those people still procrastinating to invest should start now before the will regret their actions in the future, Bitcoin is an investment of the future and anyone that want to come into Bitcoin investment should abide by those concept and apply them in other to scale through, Bitcoin has come to stay and I think the best thing anyone can be doing now is to keep acumulating and holding for a long-term benefit.

What i think is that Trump is a powerful personnel who has a vision to make America great again, he wants them to remain at the top and he's bent on achieving that, Bitcoin as an asset class has a good store of value and can also be used as a hedge for inflation it's a good thing many governments that críticísed are beginning to see it's potential of nation building when it comes to strengthening the economy and of course owning the largest Bitcoin reserve would ensure that America remains at the top in future.

 The citizens of Trumps nation should be happy that they've got a president that believes in Bitcoin and it's potential, Bitcoin is a good way to secure a better future when it comes to finance and trump being a Bitcoin lover would ensure that certain regulations against Bitcoin by the previous regime would be kicked and majority won't miss out of accumulating it and enjoy it's future benefits.

[BlackHatCoiner]

This week I read that Japan and Thailand are thinking of either buying bitcoin as strategy or propose a legal tender.

In addition to these two countries, a France member of the European Union proposed to follow the same principle as El Salvador, and build a bitcoin strategic reserve: https://x.com/saylor/status/1869014535698563573.

This is precisely what I meant by "encouraging everyone to follow". Judging by the economic incompetence of the members in the EU, I would expect them to be the last who adopt the proposal, but there's clearly a tendency towards that direction. More members are starting to wake up from the totalitarian central bank system we've had so far, because now they recognize there is an alternative.

[Ambatman]

https://www.cryptotimes.io/2024/12/17/eu-mp-sarah-knafo-warns-of-digital-euro-promotes-bitcoin/

Another been outspoken about the dangers of totalitarianism and limitations(against Inflation) of the CBDC

More members are starting to wake up from the totalitarian central bank system we've had so far, because now they recognize there is an alternative.

That's the thing with unions like this
I bet before they come to a mutual agreement many countries might have gone against the indecisiveness of the union or they would all be left behind.
Government doesn't go hand to hand with giving freedom
So won't be surprised if they take their time.

[MainIbem]

https://www.cryptotimes.io/2024/12/17/eu-mp-sarah-knafo-warns-of-digital-euro-promotes-bitcoin/

Another been outspoken about the dangers of totalitarianism and limitations(against Inflation) of the CBDC

More members are starting to wake up from the totalitarian central bank system we've had so far, because now they recognize there is an alternative.

That's the thing with unions like this
I bet before they come to a mutual agreement many countries might have gone against the indecisiveness of the union or they would all be left behind.
Government doesn't go hand to hand with giving freedom
So won't be surprised if they take their time.

At this point, the Government has no choice than to do the needful, Bitcoin as an asset class would ensure that cause many governments are beginning to see the potential of Bitcoin when it comes to nation building, they've seen how well it could help improve their economy if only they can buy and reserve for the future therefore, that's why several government are beginning to copy what El-Salvador did with the coin and directly or indirectly they'll be forced to give in to financial freedom in the near future, embracing Bitcoin alone would ensure that. The Banking system is failing and several governments would turn to their Bitcoin reserve to back up their fiat and also as a hedge to inflation and i believe that with time, Bitcoin would be widely used for carrying out transactions around the globe when all the major economys jump in. Their are more better days ahead it's just a matter of time.

[bangjoe]

Navigating your mind about this does look like that, where not a little old money in America says Bitcoin Scam

The enemy is not no-coiners. I don't care about a bunch of fools who don't understand basic economics. My concern goes to the money masters of America. Those people have historically used everything in their disposal to keep the world under a fiat standard, and now out of nowhere, the president promises the people bitcoin, a currency that completely undermines the purpose of fiat currency across the world. Something just doesn't add up.

I would think that there is going to be an attempt to harness and control bitcoin, but that does not mean that the attempt is going to be successful.  Surely, the more and more that bitcoin is held in the hands of BIGGER institutions, then there may be attempts to make self-custody illegal and/or very difficult... but that does not mean that they are going to be successful in that, either.

I agree with your insinuation that the battle is not over, and it is likely going to take a long time to play out, including ups and downs along the way and ongoing casualties.

If you have read how the statement that the IMF gave to El-Salvador, they strongly said that if El-Salvador wants to get a loan from them then Nayib Bukele must limit the use of bitcoin in his country as one of the conditions to borrow money from them.

This may be a special concern again regarding the policy of what Trump proposes about Bitcoin as a US strategic reserve asset.

Okay, what possibilities will be conveyed when this policy is deliberately not agreed upon “I have proposed Bitcoin but the results of congress are deliberately manipulated (instead of fulfilling his promises)” the rest of the time he is hands off with what he has said during his campaign.

[Kemarit]

Powell says Fed cannot hold bitcoin, not seeking to change that

NEW YORK, Dec 18 (Reuters) - Federal Reserve Chair Jerome Powell said on Wednesday the U.S. central bank has no desire to be involved in any government effort to stockpile large amounts of bitcoin.
"We're not allowed to own bitcoin," Powell said at a press conference following the Fed's latest two-day policy meeting, in which policymakers cut rates as expected while signaling a less certain path for monetary policy in the months ahead.

Most likely this is the news that bring the price down.

But let's see how Trump will response to this, or if he can vetoed it to make it a law (not sure about this, I'm not a US citizen).

We all know that this is going to be the race in the future, with Russia and China amongst those who wanted to stockpile Bitcoin as reserved.

[LoyceV]

Powell says Fed cannot hold bitcoin, not seeking to change that
~
Most likely this is the news that bring the price down.

If this drops the price of Bitcoin, that means people were expecting something else from the FED. Like.... seriously? Of course the FED doesn't like anything else than the money they themselves print out of thin air.
I'd say it's a good thing if the Bitcoin Federal Reserve is not going to be held by the FED. Create a new agency for this, one that is actually government owned.

From your link:

    Summary

1.    Fed chief says not seeking power to hold bitcoin at central bank
2.    There is growing momentum for government bitcoin reserve
3.    Fed officials have been skeptical about cryptocurrencies

I'd say 1. and 2. are only good news for Bitcoin, and 3. is no surprise.

It reminds me of this famous quote:

“Give me control over a nation’s currency, and I care not who makes its laws. Mayer Amschel Rothschild (1743–1812)”

[justdimin]

happiness is not only measured by the amount of money we have but we need money to survive because now is no longer the era of bartering with each other. Many people work hard to get money with the aim of fulfilling their needs, fortunately for those who are born into rich families it is not too difficult to think about their economy but for people in the lower middle class they have to work hard to get money and fulfill their needs, this proves that money is one important thing in life today.

I myself want to be able to make a lot of money per month, I have worked and another thing I want is to have workers, that is my dream in building my own comfortable life.

I do believe that there is a minimum amount of money that is required to be happy. Sure "money doesn't bring happiness" is true in some senses, like for example while it can purchase great healthcare, like you can get the best doctors and hospitals and medicine and what not, it still doesn't guarantee health for too long, there are plenty of rich people who suffered disease or even death at young age even though they were rich.

However, if you can't pay your rent, do not have money for any good food, or can't buy stuff that you need, that's not going to be good neither, so while you do not need a billion dollars to be happy, you also can't survive on 500 bucks a month neither. As long as you have a minimum amount that covers your survival, rest is all up to you.

[IceLincoln]

Wow a well written and documented thread, Mr. Filippone are you sure you’re not a professor or a Doctor(Ph.D).

I jus wanna add that the state of Ohio has also introduced a pioneering bill to establish a Bitcoin reserve, spearheaded by State Representative Wes Goodman, potentially positioning the state as the first in the US to hold BTC as a reserve asset.



Powell jus made a lot of people loose their money And even on Wednesday the 18th, President Trump in his speech in the Washington Crypto Policy Summit restated that the US Government is still pro crypto reassuring the crypto enthusiasts that the US intends to keep “our business in the United States, rather than China or some other place” regarding bitcoin.

So hopefully things will change as Trump and his organisations has declared.