Topic: 3000 letters sent to US senators to help approve strategic bitcoin reserve - page 2. (Read 343 times)

I understand you very well and if successfully the US government approves this motion, it is likely to say that the US runs the Bitcoin indirectly which by initiation, Bitcoin is a decentralized financial technology ought not to be sighted that any organization would be under it control.

You are not just far from the truth because once it becomes a reserve for the US, other countries will also play along and I bet that in just matter of times, Bitcoin would be callus where the market where such as tolerable adoptors sentiments may turn something crisis not just to the values of the Bitcoin but also to the communities as a whole because they governments of each countries would become the big whales which might be feared to employ politism into the decentralized system.

It was claimed that the US did not create Bitcoin and it will be a worry to why they would lean the countries treasures in there even with the claims that its creator Satoshi Nakamoto has been anonymously unrevealed couples with the decentralizations policies of the coin.

How do they really derive the trust for this impact would be questionable and if drastic measures is not being taken at this course, Bitcoin might become a nightmare while created path for other invent (s) to take shape due to political sentiments between the whale countries.

Indeed the little holders would be sidelined as the industry could be compromised by markets manipulations.

I would just say, whether or not government is using bitcoin as a reserve doesn't concern us as bitcoiners. The only thing to worry about is the market impact of the news.

• If US buys 1million BTC for reserve, it might also cause upward movement of the price of bitcoin.
• If they don't buy, naturally, bitcoin is built on scarcity model. It will on its own get scarcer as time goes.

To me, I am even happy that the government is now talking about holding BTC as a reserve, ETF approved, etc. This is the global adoption that was said and prophesied years ago.

Additionally, they wouldn't want to lose out in the investment, it'll all turn out in a way that'll work for the government. Although the last part of the bill stated clearly that the government wouldn't in anyway, for the sake of the reserve, restrict individuals from trading their bitcoins or confiscate people's digital assets. From historical approach of gold reserve, the government purchased a lot of gold, and somehow controls its flow in their favor. We'd be looking at a crypto market where the government try to manipulate the prices to work in their favor.

I didn't know this was why government meddling directly with these markets was a bad idea but now I now. Very useful to know and keep in mind. Back in the day, I was among the many bitcoiners were aligned with the fact that institutional investors and governments getting involved with Bitcoin but not so much anymore because that kind of control and authority is not good for Bitcoin's decentralization. If US acquires Bitcoin and other countries like Russia does, it becomes a race for who gets to find a loophole and control the network or influence network concensus.

I can't completely sleep at night knowing that some reserves of Bitcoin are in the hands of the government for 4 years not to talk about 20 years.

What is the essence of holding an investment, I would immediately sell my holdings and focus on another asset. The reason is that there is nothing the government has regulated that they do not control. Bitcoin in reserve in the hands of the government is something I would never tie my fate to. Success is my reason for holding and investing in Bitcoin with the government involved I am no longer interested.

The main point to be made is that governments are not supposed to invest in speculative things such as stock/bonds/and now - crypto. The reason should be clear - it gives said governments leverage to directly manipulate the businesses that the government has a stake in. It also opens the doors to government officials getting kickbacks from the companies.

In the case of stocks/bonds that also gives an unfair advantage to the companies over their competitors because investors can/will view it as an official endorsement of the company.

All in all -- not a good idea.

The other thread on this topic applies here: Bitcoin getting in bed with US politics can only end in DISASTER.

If US taxpayers are going to be asked by 3000 rich people to prop up their favorite investment using money from the US Treasury, then... US taxpayers are going to want something in return, e.g. to confiscate the wealth of all Bitcoin holders.

And if Bitcoin is associated with Trump and the Republicans, then roughly half of Americans are going to hate Bitcoin because that's how American politics works these days.

I think this is another bad news to bitcoin because if US government have bitcoin in reserve and other governments, it means that bitcoin can easily be manipulated since they have the major bitcoin in their custody and that is not good for the decentralized nature of bitcoin. I don't know why these governments are always looking for a way to control everything that they come across. It means that the common man will not be able to buy bitcoin in future to come if this happens. Government should concentrate more on other assets and not bitcoin.

To be honest, you already have investment companies like Blackrock and others that own billions of dollars worth of bitcoin ETFs. They are already in a position where they can manipulate the market. I don't trust Blackrock any more or less than I would trust the US government or any other nation's elites. If we consider the wealth that Blackrock has at its disposal, it's richer than many nation states. They own the world and the politicians, we just live in it. 

Countries creating their own Bitcoin reserve is a major Red flag. If US starts doing it, many other countries will follow the same. Can you imagine how many Bitcoins will be moved out of circulation and kept in reserve? The governments will then become the major market players and commoners like us will have to suffer due to all manipulations that will start happening the market.

Bitcoin is the only true wealth for the common people. I don't really want such reserves to be built by US and other countries. It will be disastrous for common investors.

It's ok for me if two conditions are met:

1) the reserve is limited to an amount which don't enable the government to major market manipulation. See my concerns in this thread. The example used in that OP to use market manipulation to implement an address blacklist is perhaps a bit exaggerated, but for example if Bitcoin Core decided to implement more privacy into the protocol there is potential for resistance (governments threatening to sell their coins if Core doesn't "obey" them). Other areas where a government may try to interfere are the PoS or big blocks discussions.

2) if the move is accompanied by a coherent cryptocurrency policy. This means for me that at least there should be acceptance to pay taxes with Bitcoin, a tax policy and regulation not causing major burden for crypto users, and no restrictions regarding the use as a payment means. Recognition as legal tender is not necessary.

3) the reserve is meant to be permanent, this means that it should not be sold. So the goal should not be "hold for 20 years", but "be part of Bitcoin's ecosystem".

A million BTC for the US would violate #1.

The more bitcoin reserves are concentrated in holders such as "countries / nations", the less bitcoin holders will be among ordinary people. Not only because of market distribution (buying and selling), but because of the taking of the stronger from the weaker. Or do you really think that "countries" will start buying bitcoin from their populations? Especially not rich countries or totalitarian ones.

Bitcoin in the hands of governments will cease to have anything from decentralization. "Countries / nations" don't need this, and therefore, they will try to deprive bicoin of this function.

Every financial asset is sought to be preserved and protected.

Amendments can be proposed and then adopted at any time. Laws are constantly being rewritten to suit governments.

The last time we had Donald Trump and Cynthia Lummis talk about bitcoin as a reserve asset at the 2024 Bitcoin Conference, it took only a few days for bitcoin to loss $15.000 of its value. The US started moving some of the bitcoin it had previously confiscated, so it didn't do us much good. There are, of course, several factors that led to this dip. Better that the politicians don't meddle with it. Besides, I am not optimistic that the bill by Cynthia Lummis will pass. 

I thought about it, considering the volatility of bitcoin. But the long term concept is remarkable. Holding bitcoin for 20 years is something every expert would recommend.

I think it is a horrible idea for ANY government to hold BTC as a reserve. Would you want them to hold stocks & bonds as well? I doubt it.

Amidst bitcoiners interest on the section 5 of the strategic bitcoin reserve bill ( The bitcoin purchase program of 1,000,000 btc) many had to send out letters to their local senators. A few days ago, about 2200 letters was sent and today nearly 3000 letters have been sent. I don't know if this will be of any effect, but I think that the recipients would feel they're been spammed.

Reading through this reddit post, I could say that not everybody would be able to draft out an appealing letter. When I went through the site where those letters are being submitted, I also noticed that a premade letter is on the site, as a template. But, people may send similar letters and senators will be receiving same type.

However, the community needs this in the sense that US buying bitcoin as a hedge against monetary instability can lead to more countries having bitcoin reserve to strengthen the financial condition of their nation.

I had to go through the strategic bitcoin reserve bill by Ms Lummis and noticed that nothing is decentralized about the concept. The secretary of treasury has more authority over all the private keys locations.

And from the look of things they'll be a collaboration with the secretary of defense and secretary of homeland security to help secure the physical locations where the cold storage equipment would be kept. Although in a way meddling with the funds would be punishable by law.

If it's passed, we'll watch how they'll be able to hold those btc for 20 years without amending the law.

Those who wish to participant in this scheme here is the site https://satoshiaction.quorum.us/campaign/strategicreserve/