U.S. Makes Bitcoin a Strategic Reserve , does this mean they’ll Never Dump Again

[DanWalker]

Obliged to sell the BTC they ought to hold for some years to help their country's economy? Who ordered the sale of the BTC when some countries are using it as a strategic reserve after seeking professional economic advice.
I believe the decision was made in haste or there's something shady going on which the German government is not telling the public.

It was actually the prosecutor’s office in Dresden, Saxony that sold the bitcoins, not the German federal government.They sell bitcoin because it is required by the German constitution. It's the law and their laws are different than US laws, and they just follow the law.

Don't get all excited and hyped about US bitcoin reserves when it's not an Act but an executive order. It can be abolished at any time if they are no longer interested in bitcoin.

Moreover, the US government also sold bitcoin many times in 2014, they sold more than 30kBTC at very low prices or sold in 2023, 2024. Why don't you talk about it and criticize the German government?

[Swordsoffreedom]

I want US to lead by example to acquire Bitcoin and not all this gimmick of using seize Bitcoin, it doesn't create demand rather its bringing forceful centralization. I read yesterday that Kazakhstan plan to used seize crypto assets as reserve including funds illegal miners. This is even more scarier, I don't support crime, I don't support fraud but I feel, if you love Bitcoin that much and you value it then come to the market and get yours, it's high time the hypocrisy need to stop. This is why insist that if US buy Bitcoin, the rest the countries will do the same, you can see they are practically doing exactly what the US said they plan to do with their Bitcoin reserve.

None of us support crime and the government using Bitcoin seized from criminals and scammers to create national reserves is not a bad thing either. But honestly, I also don't support this idea if they still don't want to use the national budget to buy but just want to use bitcoin from criminals as national reserves. If they still hold that view, I feel they despise bitcoin more than they actually respect it.

Not to mention, this will lead to many other consequences. Proponents of this idea have thought of the scenario, what if they ban us from using non-custodial wallets and anyone who intentionally uses them and gets caught will have their BTC confiscated and put into the national reserve? If that scenario happens, it would be terrible for us. So news that countries are using seize Bitcoin as reserves is not positive news for us to get excited about.

[Oshio-man]

They call it reserve, that means those bitcoin are for investment and future profits purpose,  so for that reason,  at some point they will definitely sell off their Bitcoin holdings when the profits is ok for the country, also we shouldn't think that because such a big country's holding Bitcoin reserves will stop Bitcoin from dumping in price or even mark an all time high bill market.

I think U.S knew what bitcoin is all about before they started process this bill they are processing now to make bitcoin a service for the nation, Since this matter is raised in this president Trump administration to make bitcoin where they will be keeping some funds and hold for long term, it will make U.S economic improve in economic sector and other sectors in their country because they will see the benefit of bullish season in bitcoin, which is what make other countries to make bitcoin their reserve, bitcoin will definitely be increasing and decreasing no matter the kind of amount of funds U.S government will put because U.S government don't have the power to make bitcoin not to decrease in the market.

[NewRanger]

I think U.S knew what bitcoin is all about before they started process this bill they are processing now to make bitcoin a service for the nation, Since this matter is raised in this president Trump administration to make bitcoin where they will be keeping some funds and hold for long term, it will make U.S economic improve in economic sector and other sectors in their country because they will see the benefit of bullish season in bitcoin, which is what make other countries to make bitcoin their reserve, bitcoin will definitely be increasing and decreasing no matter the kind of amount of funds U.S government will put because U.S government don't have the power to make bitcoin not to decrease in the market.

The view still produces various versions in seeing this. There are two possible outcomes if the government commits first, it will view this discourse as a strategic reserve, meaning positive investments will yield significant returns in the future. Second, the government can position itself at the forefront as a key player in the current global financial system, indirectly entering the realm of geopolitical strategy.

Even if the government sells crypto assets at any point during this phase, it will not be considered a random sale, but rather a precautionary measure and fiscal pressure, not panic over a deep market correction. Of course, it could also indirectly exacerbate the downturn, as the amount of assets sold will undoubtedly be substantial. But, I am confident they will maintain stable confidence in digital assets, especially BTC, if they commit as I mentioned earlier. The results will be even better if this discourse is continued by the newly elected president.

[0x000369]

yeah this is actually a big shift in how they look at bitcoin like before it was just something they seized from criminals but now calling it a strategic reserve makes it sound like they finally see it as real value something they actually want to hold on to but you know how governments are they change fast if they ever need money they could still sell some of it nothing is 100 percent guaranteed but it does feel like dumping it all is less likely now.

if other countries start doing the same thing and add bitcoin to their reserves that would take a lot more coins out of circulation over time and that’s pretty bullish in the long run even if it doesn’t make the price stable right away.

[Satofan44]

The government can still sell bitcoin to the market, they can't hold it forever, but if it becomes a national reserve. They won't be able to sell it randomly just because the market is volatile, they will only sell it in case the economy is in trouble. That's one of the benefits if bitcoin becomes a national reserve like gold.

Of course they can, don't write generic nonsense like that. It does not matter whether the reserve is "strategic" or "national", in both cases it can be either held forever or sold whenever.

Who controls (hoard) the supply, controls the price.

Maybe, but then the price of everything is controlled.

Most definitely, that is true.

They are not into BTC due to its ideals, but because they will have profit and more details on people from it (if said people would go to centralized entities for BTC and so on..).

You're stating the obvious thing though. If they were into BTC for its ideals, you would see it with 2 things: gold would start a rapid death spree and so would the USD, and with the USD other fiat currencies as well. Someone can not be into BTC "due to its ideals" and then still have a considerable holding of these two shitcoins, gold and fiat.

Don't get all excited and hyped about US bitcoin reserves when it's not an Act but an executive order. It can be abolished at any time if they are no longer interested in bitcoin.

Those can also be changed or abolished therefore don't use this nonsensical counterpoint.

Moreover, the US government also sold bitcoin many times in 2014, they sold more than 30kBTC at very low prices or sold in 2023, 2024. Why don't you talk about it and criticize the German government?

The German government is one of the dumbest governments by far, so yes they should be criticized. How's that car industry doing these days? 

Stacking sats is one thing, but Uncle Sam hodling 200k coins is some next-level validation. "Strategic Reserve" sounds bullish AF, but let's not get rekt by hopium. Gov can still rug us with a law change.

With this line of reasoning, you can dismiss the positive news of any person or entity buying Bitcoin. They can in the end sell at any time.

[Casteel]

It may or may not..Things could change for sure depending on new legislation

[fillippone]

The government can still sell bitcoin to the market, they can't hold it forever, but if it becomes a national reserve. They won't be able to sell it randomly just because the market is volatile, they will only sell it in case the economy is in trouble. That's one of the benefits if bitcoin becomes a national reserve like gold.

Of course they can, don't write generic nonsense like that. It does not matter whether the reserve is "strategic" or "national", in both cases it can be either held forever or sold whenever.

I think in the executive order Trump mentioned a minimum holding period of 20 years. There weren’t any condition for the sell. I guess there aren’t condition for the sell of any asset on any strategic, or national, reserves. It would be too risky to restrict only to specific category of scenarios

[Satofan44]

The government can still sell bitcoin to the market, they can't hold it forever, but if it becomes a national reserve. They won't be able to sell it randomly just because the market is volatile, they will only sell it in case the economy is in trouble. That's one of the benefits if bitcoin becomes a national reserve like gold.

Of course they can, don't write generic nonsense like that. It does not matter whether the reserve is "strategic" or "national", in both cases it can be either held forever or sold whenever.

I think in the executive order Trump mentioned a minimum holding period of 20 years. There weren’t any condition for the sell. I guess there aren’t condition for the sell of any asset on any strategic, or national, reserves. It would be too risky to restrict only to specific category of scenarios

While you are correct, I believe that the user wanted to make a false distinction here. It is correct that an executive order can be reversed by the next president, therefore if the next president is a Democrat or a Republican that is hostile to Bitcoin then they can simply reverse the policy or remove that holding period. The users wants to state that the reserve is useless because it does not add Bitcoin to the national reserve. However, he writes this because he does not know how these things work. Bitcoin can be added to the national reserve in 2 ways:

1. Executive order (again). It can simply reversed by the next president even if it was added to the national reserve.
2. Law change (congress). It can be reversed by the next congress.

So regardless of whether the reserve is strategic or national, and regardless of whether it is done by an executive order or through legislation, a government change can undo it. A simple majority in both chambers by the Democrats can reverse it. Therefore his argument is incomplete and completely flawed. There are ways in which it can be done that would require more than a simple majority for reversal but they are all more complex or unlikely at this time. For example:
1. Constitutional amendment (extremely unlikely).
2. Federal Reserve balance sheet (currently unlikely).

There is no need to waste time looking for "gotcha" points like the user CryptoBuds did. The law system of every country is flawed in countless ways, there is no legal solution that doesn't come with caveats or ways to reverse it (even if it requires a 2/3 majority). This is why game theory matters. You don't need to worry about someone trying to undo the reserve, when everyone wants Bitcoin.  We will get there, some people are just very impatient or shitposting here. This should be celebrated. Nobody would believe that this could happen just 5 or 10 years ago.

[Antona]

They call it reserve, that means those bitcoin are for investment and future profits purpose,  so for that reason,  at some point they will definitely sell off their Bitcoin holdings when the profits is ok for the country, also we shouldn't think that because such a big country's holding Bitcoin reserves will stop Bitcoin from dumping in price or even mark an all time high bill market.

I think U.S knew what bitcoin is all about before they started process this bill they are processing now to make bitcoin a service for the nation, Since this matter is raised in this president Trump administration to make bitcoin where they will be keeping some funds and hold for long term, it will make U.S economic improve in economic sector and other sectors in their country because they will see the benefit of bullish season in bitcoin, which is what make other countries to make bitcoin their reserve, bitcoin will definitely be increasing and decreasing no matter the kind of amount of funds U.S government will put because U.S government don't have the power to make bitcoin not to decrease in the market.

True they definitely know what it is, The bill is about integrating it into their system, not controlling it they want exposure to the bullish cycles like any other nation state, but you're right, even the US can't stop the volatility they're just trying to ride the wave.

[dkbit98]

Bitcoin US strategic reserves only means that US government now have a legal way to seize bitcoin from everyone.
They can literally shutdown exchanges, seize websites, servers and take bitcoin from individuals.
And they are surely going to dump those coins at the right time they choose.

[BALIK]

I think U.S knew what bitcoin is all about before they started process this bill they are processing now to make bitcoin a service for the nation, Since this matter is raised in this president Trump administration to make bitcoin where they will be keeping some funds and hold for long term, it will make U.S economic improve in economic sector and other sectors in their country because they will see the benefit of bullish season in bitcoin, which is what make other countries to make bitcoin their reserve, bitcoin will definitely be increasing and decreasing no matter the kind of amount of funds U.S government will put because U.S government don't have the power to make bitcoin not to decrease in the market.

Currently, the US strategic bitcoin reserve is merely an executive order, it is not yet a "Act" like gold.

Furthermore, national reserves cannot directly help improve a country's economy. The role and function of national reserves is primarily to prepare for emergencies, mitigate risks, and protect the economy from shocks. That's why they prioritize stable and safe assets like gold above all else. It can be said that national reserves are only used in emergencies, they have no intention of speculating or making short-term profits from these assets.