(Bitcoin Reserve) What will be your Suggestion

[takuma sato]

I like the concept of the Bitbonds that was presented recently in order to offer BTC-performance but adjusted to more average investors. By doing financial engineering the volatility can be capped and thus then it becomes desirable for a brand new market that simply cannot deal with the wild swings in price of BTC but they are still attracted to the CAGR track record that has been beating the SP500 consistently since day 1. Michael Saylor is already working on these products but they are for specialized non-retail type of investors. Bitbonds looks like it will be integrated within common financial brokerages and will be institutionalized. I think this is the next big step of BTC-backed investment that could push the price to a brand new order of magnitude.

[BALIK]

As long as bitcoin reserves are not passed by Congress and become bitcoin act, we should stop dreaming about them selling gold to buy bitcoin or investing bitcoin from national treasury/assets.

People need to know that Trump's Bitcoin reserves are fragile and will be easily repealed by the next administration. Things are still uncertain, so don't put too much hope and consider it as a major factor to drive bitcoin price.

Don't let politicians manipulate us so easily.

[Negotiation]

The US economy and markets have seen a number of changes since Trump became president and this has significantly boosted the prices of bitcoin and gold. Gold has been known as a safe haven for many years but interest and acceptance of bitcoin is growing. While the US government cannot touch the gold storage system they can buy bitcoin under the DCA system. It is possible that the government could invest a portion of their reserves in bitcoin or other cryptocurrencies especially if they expect long term stability and profitability this would be a big decision and could carry political and economic risks.

[Smack That Ace]

Actually you are right, reading at first, I thought it is the worst idea to sell Gold to buy BTC but when I searched on Google, the news is really saying, whitehouse has plans to sell the profits to buy BTC, well, if that is what they are exploring, then that's their choice but I don't think they will agree on this.

The White House has never had any plans or intentions to sell gold to buy bitcoin, any idea of ​​buying more bitcoin is just a rumor. Selling gold or buying bitcoin is not a simple matter. To do that, it is necessary to pass a new bill, the White House will not be able to sell gold without the consent of the House of Representatives and the Senate, which is an impossible task.

But if they are going to use gold then we should not expect that they will only invest in BTC, as you might know when Trump made a tweet about reserve things, he forget to mention BTC and ETH he mentioned three alts first and then requoted it by mentioning BTC and ETH.

But only Bitcoin is recognized by the White House as a strategic reserve, the remaining altcoins are called Digital Asset Stockpile. These two are completely different, and if they were to intend and be allowed to buy crypto assets as national reserves, I guess they would just focus on bitcoin.

[batang_bitcoin]

They've got seized Bitcoins and they can ammend a law to just take over that fund and put it to the reserve or they already did that? I don't think that the US is too optimistic on this Bitcoin reserve and they have to convert their gold reserves for it. There will be other avenues for them to fill the spot that they have so that they'll have more Bitcoin in their reserve. But I don't think that they'd do it alone and they'll need to ask for the financial institutions like MSTR for them to help and sort this out. That's how they might pull it out.

[kotajikikox]

In other for us to be able to discuss further, what is our take on the subject matter and the options available below as your suggestion with reasons.

1. Convert some of the Gold Reserves for Bitcoin Reserve.

I do not think they should do this, to be honest. As much as bitcoin can be profitable, gold is also beneficial especially for governments’ reserves. It’s less volatile than bitcoin so I believe that it can be helpful in times where maybe bitcoin can’t deliver exactly. There’s nothing wrong with having multiple assets. It would be safer that way, imo.

3. Use the Confiscated Cryptos for Bitcoin Reserves

That’s already what they are doing, are they not? They can maybe buy more but they should keep the gold. A country with no gold may find themselves at risk.

[Agbamoni]

If you have observed the market since Trump took over as president, Gold is doing better than bitcoin in profits which I think wouldn't make Trump to consider selling some fraction of their gold to buy bitcoin. I agree with you that Trump isn't suppose to add those shitcoins as part of US reserve. But what do you expect from a shitcoin owner, he will support his other colleagues.

US can still not touch their gold but buy bitcoin with whatever means that US can use to purchase bitcoin, because I believe the country is rich enough to plan for a DCA accumulation method which they can use to buy bitcoin monthly, bimonthly or quarterly.

Before Trump came into seat Gold was doing better than Bitcoin in short intervals. Only on the long run has Bitcoin soar higher than gold increasingly magnificently. Meanwhile how they perform in short term or long term will not decide if Trump will shift some reserve of Gold into Bitcoin. If that will be a smart move i know Trump will do anything for the benefit of the US entire economy to be great.

In your second paragraph you made a good point. Obviously, the US government has the money they can get from other sources to hold more reserve in Bitcoin. No need to tamper their gold reserve it won't make much sense.

[Despairo]

They've got seized Bitcoins and they can ammend a law to just take over that fund and put it to the reserve or they already did that? I don't think that the US is too optimistic on this Bitcoin reserve and they have to convert their gold reserves for it. There will be other avenues for them to fill the spot that they have so that they'll have more Bitcoin in their reserve. But I don't think that they'd do it alone and they'll need to ask for the financial institutions like MSTR for them to help and sort this out. That's how they might pull it out.

Government aren't risk taker, so I don't think we will expect they would sell their gold reserves for Bitcoin.

Instead they will try find a way to fund the Bitcoin reserves without any cost, which is claim the seized Bitcoins. They might become more aggressive to seize someone else coins when there's a thing not pass their regulations/laws.

[betswift]

They've got seized Bitcoins and they can ammend a law to just take over that fund and put it to the reserve or they already did that? I don't think that the US is too optimistic on this Bitcoin reserve and they have to convert their gold reserves for it. There will be other avenues for them to fill the spot that they have so that they'll have more Bitcoin in their reserve. But I don't think that they'd do it alone and they'll need to ask for the financial institutions like MSTR for them to help and sort this out. That's how they might pull it out.

Government aren't risk taker, so I don't think we will expect they would sell their gold reserves for Bitcoin.

Instead they will try find a way to fund the Bitcoin reserves without any cost, which is claim the seized Bitcoins. They might become more aggressive to seize someone else coins when there's a thing not pass their regulations/laws.

..Or they just put in a small amount regarding the overall fund flow they have and see how it would work out. That would be even better

[MArsland]

1. Convert some of the Gold Reserves for Bitcoin Reserve.

My opinion for the first point is to let gold and bitcoin go hand in hand without taking part of each other. In other words, do not reduce gold reserves for bitcoin reserves. The US can still get it from other sources, shouldn't America still be a superpower? In addition to bitcoin reserves being important in digital finance, gold is also an important center to show the US as a country that remains important in the eyes of other countries.

[cr1776]

I don't really see the US selling their Gold for Bitcoin
They are where they are today because of Bitcoin.
Besides despite been relatively slow it's doing it's job well not to mention less risky.

2. They don't have such fund to spare unlike El Salvador the US isn't a small country. Not to mention a Country wouldn't want to go all in from an unventured territory.

3. This is safer and what they are currently doing. But it's to be slow to accumulate an amount that can make a difference.

Maybe then just have to balance it little With option 2.

I agree, I don't think the US would sell gold for bitcoin.  In my view, it would be illogical to sell gold for bitcoin because the US can just sell bonds to purchase it and it is a smarter move for them to sell bonds at a low rate to purchase it vs selling something that is a store of value (such as gold or BTC) to do so.  It is better to sell bonds where the value will be inflated away (unless DOGE is successful in controlling waste and spending) so that they can be repaid in lower value dollars in 30 years.

[d5000]

Instead they will try find a way to fund the Bitcoin reserves without any cost, [...]

I read some time ago (when everybody was talking about the Strategic Reserve) that one of the plans (I think it was Cynthia Lummins who proposed that) is indeed "cost neutral": not to sell gold, but instead revalue their gold certificates which still are valued at an outdated price ($42 per ounce). Bo Hines has recently confirmed that possibility.

That would perhaps not generate enormous amounts of funds, but would be cost neutral, because they could simply take the profits (i.e. buy Bitcoin with dollars using the difference between the old valuation and the current valuation at close to gold ATH prices).

Of course it would be perhaps a bit of a gamble, because the gold prices could fall again (e.g. if the current geopolitical tensions decrease) and then they would have to revalue the certificates again. I'm not an expert about reserves but I think that would means that they'd have to restrict Treasury balances (having less money). But in theory that could be compensated by a Bitcoin re-valuation if Bitcoin's price rises

[Doan9269]

I don't really see the US selling their Gold for Bitcoin
They are where they are today because of Bitcoin.
Besides despite been relatively slow it's doing it's job well not to mention less risky.

2. They don't have such fund to spare unlike El Salvador the US isn't a small country. Not to mention a Country wouldn't want to go all in from an unventured territory.

3. This is safer and what they are currently doing. But it's to be slow to accumulate an amount that can make a difference.

Maybe then just have to balance it little With option 2.

I agree, I don't think the US would sell gold for bitcoin.  In my view, it would be illogical to sell gold for bitcoin because the US can just sell bonds to purchase it and it is a smarter move for them to sell bonds at a low rate to purchase it vs selling something that is a store of value (such as gold or BTC) to do so.  It is better to sell bonds where the value will be inflated away (unless DOGE is successful in controlling waste and spending) so that they can be repaid in lower value dollars in 30 years.

I want us to look from the aspect of being more advanced in our way of reasoning along with them and that is if they can also be logical in it, gold is already high and has been on this some some time, which this season present it as its own peak period, if they can sell now and wait till the market dips with gold and buy again, because this is nothing more than the idea of using DCA strategy to invest both on bitcoin and gold, sealing gold high and buying bitcoin low, then selling bitcoin high to buying gold when it also fall, being dynamic with investment and combining the opportunities the two profitable assets could render.

[Mia Chloe]

To be honest bitcoin reserve is a good initiative especially one a country would pass bills to adopt, in fact it's even an indirect check that such a country allows the use of Bitcoin as a legal tender. However the biggest problem I see with countries adopting bitcoin reserves is the effect they would have on price if they intend to make a sell move.

Definitely countries that adopt bitcoin reserves have a pre- speculation of how they intend to profit off it over the next "X" years as the case may be. However the effect of FOMO on the market when they intend to sell just can't be ignored.

[Cookdata]

As long as bitcoin reserves are not passed by Congress and become bitcoin act, we should stop dreaming about them selling gold to buy bitcoin or investing bitcoin from national treasury/assets.

People need to know that Trump's Bitcoin reserves are fragile and will be easily repealed by the next administration. Things are still uncertain, so don't put too much hope and consider it as a major factor to drive bitcoin price.

Don't let politicians manipulate us so easily.

There is no specified law and act tat guide Bitcoin in the United state and the only people that can pass this law are the congress and only one senator has been vocal about it, probably she hold into some Bitcoin because no politicians support anything without their personal interest and so far, there has not been any meaningful response about it, I'm not even sure if that has been table for one or even talk about despite Republicans been the highest number in the house, does that mean we have been played by Trump.

All the executive orders to do this and do that are just eyes pretence just to send messages for Bitcoin community that their president is with them and he put crypto in his plan. However, unless we want to act like we don't know what we are doing, that's not how it's done if he really want to make Bitcoin plans as part of American plan, there was never intention from the beginning about Bitcoin reserve, this is just other political play promises and he won.

[batang_bitcoin]

They've got seized Bitcoins and they can ammend a law to just take over that fund and put it to the reserve or they already did that? I don't think that the US is too optimistic on this Bitcoin reserve and they have to convert their gold reserves for it. There will be other avenues for them to fill the spot that they have so that they'll have more Bitcoin in their reserve. But I don't think that they'd do it alone and they'll need to ask for the financial institutions like MSTR for them to help and sort this out. That's how they might pull it out.

Government aren't risk taker, so I don't think we will expect they would sell their gold reserves for Bitcoin.

Instead they will try find a way to fund the Bitcoin reserves without any cost, which is claim the seized Bitcoins. They might become more aggressive to seize someone else coins when there's a thing not pass their regulations/laws.

Yeah, that's why I don't think that they'd do that. And aside from the seized Bitcoins, they could also put up into auction those other seized assets that are already fine for release and to be sold. While those can be sold, after getting the money, that's how they're going to acquire more for their reserve. They've got plenty of resources aside from the gold reserves, so there is no need for them to play into two bridge without any assurance. That's the reason why they've done this, I guess that they've got it all planned on how they'll continue to have it more than what we can think of.

[Hazink]

Selling part of their gold reserve is what I consider the last option, which the US government is going to use as a means of acquiring Bitcoin for reserve. The US government prefers things that are more stable, and they can control the price, which converting their already accumulated gold into Bitcoin will go against their belief if you ask me.

They have better options if they really want to acquire bitcoin, options like using bitcoin and an alternative option for tax payment, custom duty charges, tariffs, and capital gains tax from crypto investors. If they really want to increase their reserve, aside from using only seized coins, they have much better options on their table than selling their gold reserve.

[franky1]

Selling part of their gold reserve is what I consider the last option, which the US government is going to use as a means of acquiring Bitcoin for reserve. The US government prefers things that are more stable, and they can control the price, which converting their already accumulated gold into Bitcoin will go against their belief if you ask me.

They have better options if they really want to acquire bitcoin, options like using bitcoin and an alternative option for tax payment, custom duty charges, tariffs, and capital gains tax from crypto investors. If they really want to increase their reserve, aside from using only seized coins, they have much better options on their table than selling their gold reserve.

selling unused/empty federal buildings
income gained from liquor licences, DMV drivers permits, car registrations, passports, tourist visa's, work permits (all non 'tax' classed income/fees)
profits from US national supply oil/gas/coal sold on the international market

[Dr.Bitcoin_Strange]

I also want to emphasize that the strategy to use for this intention should  not include other cryptocurrencies if they are truly well prepared for such, bitcoin reserve is what must be considered and not crypto reserve that may constitutes other altcoins, so they don't fail already right before starting.

I doubt if the strategy is going to include other cryptocurrency apart from Bitcoin, although there are some other cryptocurrency that they have ceased which is in their possession but that doesn't primarily mean that they are going to buy centralized coins to add to the reserve, I doubt if they are that foolish. What I suggest is that they sell off the other altcoins that they have In their possession and use it to buy more Bitcoin to add to the reserve. I really do not think they should sell some gold to buy Bitcoin, rather should use the money from the country's treasury.

[franky1]

I also want to emphasize that the strategy to use for this intention should  not include other cryptocurrencies if they are truly well prepared for such, bitcoin reserve is what must be considered and not crypto reserve that may constitutes other altcoins, so they don't fail already right before starting.

I doubt if the strategy is going to include other cryptocurrency apart from Bitcoin, although there are some other cryptocurrency that they have ceased which is in their possession but that doesn't primarily mean that they are going to buy centralized coins to add to the reserve, I doubt if they are that foolish. What I suggest is that they sell off the other altcoins that they have In their possession and use it to buy more Bitcoin to add to the reserve.

the bitcoin reserve is just for bitcoin (once legalities of forfeiture and ownership are settled that it is declared 100% us gov property)
other assets will go into other pockets of investment portfolios.
such as US fed real estate will go into what they call "sovereign wealth fund"
such as altcoins,stablecoins, tokens will go into "crypto stockpile"

both the sovereign wealth fund and the stockpile will have sellable/tradable/accumilatable assets. which can then be used to hoard or sell to draw down national debt, enter treasury to pay for public services or buy bitcoin.

I really do not think they should sell some gold to buy Bitcoin, rather should use the money from the country's treasury.

they wont want to use treasury money untill they can get the treasury budget straight and not incur losses due to the debt burden and revenue vs public service expenditure deficit sorted

as for gold investment and strategy(long term)
keep in mind and for emphasis of the long term investment strategists:

imagine a scenario in 20 years without mars colony plans  those thinking gold will be 6x of todays price(much like last 20 years growth($500-3k))

now thinking with mars colony and mining scenario included that gold may only max out at 2x of todays price as a ultimate ATH in future and then correct down to become cheaper than even todays price

..
think about it if it costs say $1b for a return flight of 100tonnes from mars. then that is 3,527,400ounces per $billion, which is $283.50 per ounce for the earth-mars-earth journey
and because mars is an untapped resource where robotic(labour free) mining and refining of large nugget size gold(like the old wild west days of untapped land). the overall cost of gold mining, refining and transporting would come below $1k/ounce total(way below $500/ounce to mine/refine untapped resource rich land)

with the whole mars colony, space mining industry in the next 10-40 years booting up.. gold speculators already are planning to de-list gold from their long term 40year holdings strategy, due to plans that spaceX rockets will be bringing back 100tonnes of refined gold(and other rare metals) from space. thus kill the scarcity feature of gold with multiple starships returning to earth each year with full payloads(kilo-tonnes per year)

so long term investors are already planning this long term price of sub $1k gold in 40 years
and due to that, a second layer of economists are then planning for that 40year plan, where people are not forseeing a 6x in 20 years so they cut short investments sooner.
and third layer economists are planning on the actions of the second layer economists plans thus plan/react sooner by speculating on the others speculations to react to a sub 10 year plan as a re-reaction to th 20 year plan of the pre-reaction to the 40 year plan

all in all some people now are thinking if they want to wait out a 10-20-40 year 0.5x 2x 6x return.. or invest/divest now/sooner before anyone else and instead invest into other possible long term investments that can yield more then 2x-6x in 20-40 years.. but do it and act on it before the others do.

EG with no life on mars to have turned to oil. will oil be the scarce resource of 10-40 years to want to invest in certain financial options. or things like crypto


in short if you were planning 50 years ahead for the national wealth of the country in the years 2070.. what would you see as a better thing to hold now to play out over the next 50 years