Topic: USA converting gold reserves into bitcoins (Read 546 times)

That would be awesome but I don't think the government is smart enough to sell their shiny rocks to buy absolute scarcity that can be transferred anywhere in the world for pennies.

They will hoard the shiny rocks and either print more money or tax the people to buy bitcoin IF the SBR ever even happens.

If the US should do this, there would be a massive shake up and it might likely affect the price of gold to decline while bitcoin price would increase making other countries to follow suit immediately as not to be left behind. With this move, I see bitcoin pumping very fast if the congressmen and senators approve of it. Besides bitcoin is just 20 million in supply compared to gold  which would make it more expensive than we could imagine in time to come.

President Trump already said this in his campaign that the USA would be the leading bitcoin and crypto nation which means that the US is taking over the crypto industry and making policies to favor crypto activities with the majority of the senators and congressmen being Republicans, the support would be massive.

Greetings, I am an employee of Consensys and we are buying overpriced currency to make a profit later on. If you are tired of waiting and want to sell your coins and make money here and now, you can contact me with any questions about selling currency and I am sure we will not disappoint you.

@stadus,
I guess most of those gold where stolen from countries in Africa!

The term of the US president is 4 years, not 5 years.
Using bitcoin as a reserve will not have a significant impact on their economy because national reserves are only used in emergencies, not in a healthy economy.
Trump will change domestic policy, foreign policy, tax policy, immigration policy...all of these factors are key to determining the US economy, not relying on national reserves.

Using bitcoin to replace gold in strategic reserves will not affect the strength of the USD because we are no longer on the gold standard. But bitcoin's volatility needs to be taken into account as it is not always beneficial, so it needs to be carefully considered as it will directly impact the value of the strategic reserve asset.

Trump also made this proposal during his campaign but honestly, we are not even sure that he will keep his promise, let alone expect him to fulfill every promise. We need to know that politicians are not trustworthy and Trump is no exception.


Also, I don't think the proposal to sell gold to buy bitcoin will be easy to pass because competitors in the US are actively buying gold, they can't sell gold. This is very risky and not in their favor. Meanwhile, raising 100 billion to buy 1 million bitcoins (current price) is not easy, I don't think the government will have enough budget to do this if the gold sale is not approved.

This makes sense. Although the presidential term is only 5 years but if Trump starts this step from the beginning I think it will have a good impact on the US economy in the future. Also, by converting gold reserves into bitcoin, the impact on the national balance sheet will be quite neutral and of course it will not affect the fiat dollar because the exchange of gold to Bitcoin is completely independent of existing US financial assets.

Also, President-elect Trump also likes the concept, and he himself has shown interest in Bitcoin reserves. He sees it as an investment that can theoretically increase in value in the long run and help reduce the national debt. The idea should be brought to congress next year to create a strategic Bitcoin reserve for the US, if this can be done then the goal of collecting 1 million Bitcoins will be easy to achieve.

But if they don't manipulate and control, they will let the price of bitcoin fluctuate freely and it will be dumped, which puts them at a lot of risk because it directly affects the value of their national reserves. Bitcoin's volatility can be a good thing if they consider it an investment but can be a big challenge if they consider it a store of value.

The government is the one who sets the rules and regulations, they can charge and punish anyone who breaks them, but they only impose them on the people, not on themselves. Furthermore, even whales, sharks, market makers...are manipulating the market but is anyone openly saying that they are manipulating the market? The government can do the same, they can manipulate without having to inform or publicly tell us.

Yeah this would be cool, I feel like this bill will be met with a more leveraged and diversified approach. Like probably a percentage being taken from new cash creation to put towards it and trading some oil reserves or some other resource besides just our gold reserves. Now the US has a crap ton of gold so it will be interesting to see how this all plays out.

This proposal seems very positive, especially with Trump as president. His influence is huge, and his allies in Congress will likely back what he wants. That’s just how much power the president holds, and historically, presidents have always had a strong sway over Congress. But we shouldn’t get too hyped just yet. We don’t really know if Trump will follow through on everything he said during the campaign. If not, we could end up disappointed.

While Trump appears to be pro-Bitcoin, there’s also the chance he overhyped it during the campaign to grab voters’ attention. Once he’s at the table, every aspect, (the risks and rewards) will go through thorough review. Only then can he make a decision based on real analysis, and it may not be as exciting as the promises made on the campaign trail.

But I think people have reason to be optimistic because besides the fact that we have a president who supports bitcoin. One positive point that cannot be overlooked is that pro-bitcoin congressmen hold a majority in Congress, and both the Senate and House of Representatives controlled by Republicans. This means that if this proposal were actually submitted for consultation, I think it would easily pass without much opposition.

But as you said, let's wait and see what they do because if they don't intend to sell gold to buy bitcoin, where will they get enough budget to buy bitcoin as some people are wondering?

Let’s just wait and see. For now, it’s all speculation, and whatever the senator said isn’t automatic... it still needs to pass to become a law. I get the optimism, though. Who wouldn’t be excited? The market’s bullish, and Trump is pro-Bitcoin, so it’s natural for positive ideas about Bitcoin to pop up.

Personally, I think they will invest. Bitcoin’s limited supply makes it unique compared to gold. If they buy even 5% of the total supply, they’d instantly become one of the top holders. And if any other country tries to compete, it’d be easy for them to increase their position if the goal is really to dominate the market.

Well, this does seem like a tough move, especially since the USA hasn’t sold its gold reserves, last time that happened was back in the 1970s. But you never know, right? Other countries like the United Kingdom, Switzerland, and the Netherlands have sold their gold reserves before.

If the US really sees Bitcoin as the new gold or "digital gold," they might just make a historic decision and approve this plan. It would definitely shake things up and set a bold precedent.

Check that senator, that crook of a politician has some Bitcoin in his bags. I mean it's a good suggestion but politicians don't support something unless it will favour them and he knows Bitcoin doesn't have any regulations that will punish him if found to be having Bitcoin before supporting a bill, it will be "term" as market manipulation an influencing but who does that in crypto space? He will get away with it and nothing will happen if the bill is eventually passed.

Anything they do to favour Bitcoin is okay by me but take a dip research on how legal proceedings are done for things to be approved by the government, I just see this as eye servicing and perhaps some market things. No way US is going to convert their Gold reserver to Bitcoin. That's like crippling the Gold market and it will affect every stock you see in the traditional market, that's the least thing any government will do. They can buy Bitcoin as way of diversifying but their Gold will remain solid.

As long as the Bitcoins are already purchased and being used as a strategic reserve, it could have a positive impact on the US economy. With that in mind, I don’t think any future regulation changes would result in something anti-Bitcoin.

What Trump needs to do now is push the plan forward and ensure that the total target of 1 million Bitcoins is accumulated before his term ends, which gives him about four years to get it done. If this happens, it could be a massive move for the US economy and for Bitcoin's global adoption.

I've also considered it, and it's possible that they are just thinking about it. However, if they decide to implement it, they will need to weigh the drawbacks. If you think about it, Bitcoin isn't meant for all of this, and anything that the government is already interested in will no longer be that interesting because they want to control everything because that's what they enjoy doing the most. This could even have an impact on how well Bitcoin performs. The point is they will find it very hard to get rid of gold just like that.

Additionally, they have been using the gold reserve for a very long time, and while senators and other members would have given it some thought, how will that even benefit them? Their countries currently use the dollar for their reserves, so attempting to switch to something more promising might not be preferred in some situations, so the government is left to make the decision based on the advice of experts.

A good question. I am not from the US and I have never been there. However, I always felt that Government employees do not change every five years. No matter whether the political party changes or not. However, some corrupt employees may get fired due to political changes. Sometimes the new government does not support the previous government's initiatives. In this case, the government may no longer continue the project. So, if this happens in the US as well, that will be a bad thing. Usually, these things happen in less developed countries where the politicians hold hate for their opposition party no matter if they did good development or bad things.

Trump is a wild card - so we may see as much of good from him for the space as much as bad in the future.
I, of course, hope for the best, but I am not giving him high expectations just because he said so much 

It's inevitable to see the bigger entities interested in BTC - it's a boon and a curse when a coin is targeted for its excellence and use cases.
But in the perspective - I do think it brings more good than bad for BTC. It will be adopted more and seen as a better means for storing value and for it was intended - for conducting things without third parties.

Let's wait and see, all these unfounded words are now getting intensified just because clueless Trump won the election. He is planning to do the impossible in a country like the US and any senator who says a thing as stated in the above link is entitled to his opinion, it is just an opinion and a dream. What is certain is that the senator or Trump cannot unilaterally make it happen. I know many professionals and stakeholders will be advising Trump by now on this "mission impossible" but as arrogant as he is, he might want to push further to satisfy his campaign ego.

I won't join you in giving Bitcoin some false hope which could make it crash so much if it fails.

I thought the same when I heard their plan for buying Bitcoin and holding it for 20 years because 20 years is two decades; it's not just 2 or 3 years, and we know how things change in the long run. The talk about the US becoming friendly with Bitcoin after Trump's win is still new, and they don't have a choice but to keep the topic alive to show that they really like and support the technology, but we don't know the actual reality behind all this, we don't know the things that are discussed privately.

So, even if the US manages to buy 1 million bitcoins, I don't think they will hold them for as long as 20 years. It might take a few years before they change their mind and policies and decide to liquidate their Bitcoin positions either for profit or at a loss because a government can't keep building hope as we individuals do, but they make their decisions and act upon them as quickly as possible.