Strategic Bitcoin reserve - help for the world economy or ...

[DrBeer]

Amid the huge hype of the bitcoin reserve topic, there is a feeling that we probably see only the “tip of the iceberg”, but do not see what is “under the water”.
In one topic I have already written that I somehow have an association with the process that the U.S. launched in the last century. It was called SDI - Strategic Defense Initiative. On the surface, the project was about “military-space technologies” to counter the Cold War. As it turned out a little later, after the loud explosion of the “air bubble” under the name of the USSR, the project was not aimed at building a space constellation for the conduct of “star wars”, but in order to... the enemy “took the bait” and began to spend its budget not for the development and maintenance of the economy, but on projects that no one needs, but projects that require huge monetary expenditures !  The USSR bought this game, and we all know how this country ceased to exist - it simply did not exist.

The question is whether the project “Strategic Bitcoin reserve ” is not the same subtle game ?

[franky1]

looking at the BIS reports,
all international central banks will only store 2-5% of their fiat reserves as crypto

so lets say the US that deals with a treasury reserve of $7trill, will only be able to buy $140b of btc(2%)*
which if the price of the total btc in reserve goes above 5% of their fia reserves they would have to trigger a sell of some coin to keep their reserves below %5 being held in bitcoin

so its not as if they are going to spend 90% of treasury funds on crypto, nor have it locked into crypto for decades


*which at current prices(~$100k/btc) would be 1.4m coin or more likely from the soon to come ATH (of ~$350k/btc) 400k btc

[davis196]

The USSR collapsed due to several reasons:
1.Low oil prices on the international markets.
2.The occupation of Afghanistan was costly.
3.The communist command economy was a joke.
4.Crippling nationalism/separatism among the nations of the soviet republics.

The "Star Wars" project launched by Reagan had little influence over the collapse of the Soviet Union.
The project of a strategic Bitcoin reserve has absolutely NOTHING TO DO with the "Star Wars" project, that was launched back in the 80s.
I don't expect Russia or China to create their own strategic crypto reserves.
Maybe the only idea behind the "strategic BTC reserve" thing is Trump and his "crypto whale" sponsors to gain huge profits by pumping the cryptocurrency prices.

[Japinat]

We’re not even talking about how much they’ll consider as a national reserve yet. Based on what I’ve read, if they go through with it, they won’t buy everything at once. This makes it easier to approve since they can allocate funds gradually to fulfill the plan of making Bitcoin a national reserve.

Where do most national reserve strategies of other countries come from? Isn’t it usually inspired by the US? So, if the US moves forward with this, other countries might follow their lead, which would be very beneficial for the US. I don’t see any reason or obstacle that could stop this plan from becoming a reality.

[franky1]

We’re not even talking about how much they’ll consider as a national reserve yet. Based on what I’ve read, if they go through with it, they won’t buy everything at once. This makes it easier to approve since they can allocate funds gradually to fulfill the plan of making Bitcoin a national reserve.

its been talked about for years before trump made any announcement
(talks from 2021 later updated to have a jan 2025 implementation date)
https://www.bis.org/bcbs/publ/d519.htm
https://www.bis.org/bcbs/publ/d556.htm

Where do most national reserve strategies of other countries come from? Isn’t it usually inspired by the US? So, if the US moves forward with this, other countries might follow their lead, which would be very beneficial for the US. I don’t see any reason or obstacle that could stop this plan from becoming a reality.

again the international central banks have been talking about it long before the US
the only thing that has changed(oct 2024) is that the international community has had their plans pushed to jan 2026 instead of the initial jan 2025 date set before
https://www.bis.org/bcbs/publ/d580.htm

so its not a trump idea that everyone follows its a international bank idea from 2021 thats been pushed back until after the US does theres to let the US make the first move and appear that the US is the innovator(or initial mistake maker for other countries to watch at a distance before implementing their own mistake free strategy)

[moneystery]

the bitcoin reserve planned by the government is only to diversify their investment, i don't think there is any other agenda carried out by the government for this plan, other than just to diversify investment and find the most potential assets. this plan is also closely monitored by parliament and the government will only budget a few percent of their funds to invest in bitcoin.

but i think if the government really wants to diversify investment into bitcoin, they need to be more transparent to the public about how much bitcoin they hold, like what el salvador did... so that people can monitor and ensure that the bitcoin reserve plan is really carried out by the government.

[Churchillvv]

The question is whether the project “Strategic Bitcoin reserve ” is not the same subtle game ?

From what Trump has been saying you might be right with you insinuation, the US isn't investing the 5% into bitcoin or crypto as they say for a national progressive reason from my observation because literally trump has been saying they want to lead the world in crypto as they do no want their counterparts to lead in such great innovation. for me this means alot it's either the investment would be going into something suspicious as OP is thinking.

For me diversification isn't the initial/primary goal but a second goal, the primary goal is either to intervene in some kind of transactions using bitcoin as strategy reserve might be able to do so.

[pooya87]

Maybe the only idea behind the "strategic BTC reserve" thing is Trump and his "crypto whale" sponsors to gain huge profits by pumping the cryptocurrency prices.

Or it could be an attempt to scam people by selling them their garbage token they had created which they hyped up a lot during the election and even created a second one after they won the election to scam people more!

[DrBeer]

The USSR collapsed due to several reasons:
1.Low oil prices on the international markets.
2.The occupation of Afghanistan was costly.
3.The communist command economy was a joke.
4.Crippling nationalism/separatism among the nations of the soviet republics.

The "Star Wars" project launched by Reagan had little influence over the collapse of the Soviet Union.
The project of a strategic Bitcoin reserve has absolutely NOTHING TO DO with the "Star Wars" project, that was launched back in the 80s.
I don't expect Russia or China to create their own strategic crypto reserves.
Maybe the only idea behind the "strategic BTC reserve" thing is Trump and his "crypto whale" sponsors to gain huge profits by pumping the cryptocurrency prices.

As someone who was born and lived in the USSR, I agree with the problems you describe, but I would add that since 1984, Reagan launched the Strategic Defense Initiative program. After that, the USSR started investing huge amounts of money in the arms race (which was mostly a fake on the part of the US), which was very noticeable for the country's economy and the standard of living of its citizens. Therefore, the economy did not survive in the complex (reduction of revenues from oil/gas sales as one of the key items of budget income). And with all the “huge territories”, “40% of the world's fossil reserves”, “the best education” and “the most united people” - the USSR collapsed as a “colossus on clay feet”. So SDI turned out to be the “last straw” in the story of the collapse of the Soviet under-imperialization

The question is whether the project “Strategic Bitcoin reserve ” is not the same subtle game ?

From what Trump has been saying you might be right with you insinuation, the US isn't investing the 5% into bitcoin or crypto as they say for a national progressive reason from my observation because literally trump has been saying they want to lead the world in crypto as they do no want their counterparts to lead in such great innovation. for me this means alot it's either the investment would be going into something suspicious as OP is thinking.

For me diversification isn't the initial/primary goal but a second goal, the primary goal is either to intervene in some kind of transactions using bitcoin as strategy reserve might be able to do so.

The bigger question is not how the US will build its stockpile, but that the process itself, on a global scale, can be a complex set-up to divert the budgets of other countries to buy something that can then be made worthless, well, or at least spend huge amounts of money to buy an asset that will then lose a lot of value....

[Agbamoni]

Maybe the only idea behind the "strategic BTC reserve" thing is Trump and his "crypto whale" sponsors to gain huge profits by pumping the cryptocurrency prices.

Or it could be an attempt to scam people by selling them their garbage token they had created which they hyped up a lot during the election and even created a second one after they won the election to scam people more!

Funny enough its almost like they are using their political clout to give legitimacy to something that is completely illegitimate. And once they have milked it dry from the masses  they move on to the next big call.

It really hurts to see how they are effortlessly dumping worthless coins into people who dont know better. So far am watching every move.

[avikz]

The question is whether the project “Strategic Bitcoin reserve ” is not the same subtle game ?

Could be! You never know!

While having a strategic Bitcoin reserve sounds like an excellent idea for the country itself, it could mean a large chunk of Bitcoins taken out of the circulation for a very long time.

If many countries start doing the same thing, there will be a whole lot of Bitcoins missing from the circulation. Then these countries will sell you Bitcoin futures and what not!

Such kind of things are never a good idea for the common Bitcoin holders like us. Bitcoin will slowly become a rich man's game!

[beerlover]

Maybe the only idea behind the "strategic BTC reserve" thing is Trump and his "crypto whale" sponsors to gain huge profits by pumping the cryptocurrency prices.

Or it could be an attempt to scam people by selling them their garbage token they had created which they hyped up a lot during the election and even created a second one after they won the election to scam people more!

Which is probably what it is all about. He just wanted to promote crypto, and promote and hype his own involvement in it, make all of the crypto world look to him, and the moment he got everyone's attention, a day before he becomes the president officially, he just launches a coin, when he knows all eyes are on him. That means billions and billions of dollars into his pocket, and that's just more than what he ever made in his entire life, and not like he made this, nobody thinks he came up with the idea, Barron probably did, trump doesn't even knows about crypto or memecoins, we need to realize that this was someone else making him richer. In the end, this was all a play by him, and he was just an actor in it.

[shinratensei_]

The question is whether the project “Strategic Bitcoin reserve ” is not the same subtle game ?

you're thinking into it too much the main reason strategic bitcoin reserve is a thing I think mainly because it's a technology advancement and it will do no good to prevent technology from growing and right now capital around the world flowing to crypto therefore it's the next big thing as simple as that.
I don't think it's subtle game or something, moreover trump clearly declare he'll make the US the crypto capital I'ts pretty much this.

[Mate2237]

I think your contradicting issues here because Bitcoin reserves and the splitting up of the old USSR are two different matter's that are not related in any way the fact of the matter is that the USSR collapse was interest and purely an issue of international politics because every country has it own interest to protect and anything that they can do to achieve that they can do the USSR and it Allies then was a threat to the UK and it's allies too which includes the United States of America so they have to use politics to technically cause problems in the country so that the different regions of the country can spring up and talk about becoming independent states

But the issue of Bitcoin is a different matter entirely because any country that is thinking of having Bitcoin reserves is doing that for the economic prosperity of their country and nothing else because with the way the world is going now technology is taking over everywhere and bitcoin being a digital money is what is likely going to dominate the world in the nearby future that is why countries who are foresighted enough want to catch up with the benefits that Bitcoin holds by reason of having bitcoin reserves

[DrBeer]

I think your contradicting issues here because Bitcoin reserves and the splitting up of the old USSR are two different matter's that are not related in any way the fact of the matter is that the USSR collapse was interest and purely an issue of international politics because every country has it own interest to protect and anything that they can do to achieve that they can do the USSR and it Allies then was a threat to the UK and it's allies too which includes the United States of America so they have to use politics to technically cause problems in the country so that the different regions of the country can spring up and talk about becoming independent states

But the issue of Bitcoin is a different matter entirely because any country that is thinking of having Bitcoin reserves is doing that for the economic prosperity of their country and nothing else because with the way the world is going now technology is taking over everywhere and bitcoin being a digital money is what is likely going to dominate the world in the nearby future that is why countries who are foresighted enough want to catch up with the benefits that Bitcoin holds by reason of having bitcoin reserves

I probably didn't phrase the idea correctly. Of course, cryptocurrencies and the collapse of under-imperialization are different events. But what I wanted to say is that the hype of the topic of state bitcoin reserves may have a hidden agenda, one of which is to force people to spend on buying cryptocurrencies to form a “global trend” state bitcoin reserve, which will lead to a significant burden on the country's budget, and the replacement of real assets (such as freely convertible currencies and gold) with bitcoin, with the subsequent depreciation of bitcoin.