USA converting gold reserves into bitcoins

betswift

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Quote from: Moreno233 on Today at 04:40:30 AM

Quote from: Finestream on November 17, 2024, 11:41:38 PM

So they figured out the easiest way to hit their 1 million Bitcoin target, by dipping into their gold reserves. That’s straight from the senator's statement.

https://cointelegraph.com/news/senator-lummis-says-treasury-should-convert-gold-bitcoin-reserve

Quote

Senator Lummis' Bitcoin strategic reserve initiative includes provisions to acquire 5% of the total Bitcoin supply — 1 million BTC — to be held for 20 years. As mentioned earlier, this ambitious goal would cost approximately $90 billion at current market prices.

For anyone wondering how the US could pull this off, converting gold reserves into Bitcoin seems like a no-brainer. It’s a smart play, diversifying their reserves while potentially becoming the largest Bitcoin holder in the world. If they actually do this, they’d dominate crypto reserves, which is a massive flex on a global scale.

I'm still wondering how they will go about converting their gold reserve to Bitcoin, in the area of where they will get the liquidity to do that because US gold reserve is massive which is over $500 billion. I don't know who will be willing to buy that from them and why will someone buy that and not put the money in Bitcoin that the US are shifting to. This entire thing is not still clear to me yet because of how complex it appears to me. I will be interested in seeing how all these will happen but one thing I know is that it is all good for Bitcoin.

They can just use mediators for their agenda - who would bother to do it that much officially? They will report it for sure, but there are lots of possibilities there, in my opinion.

Moreno233

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Quote from: Finestream on November 17, 2024, 11:41:38 PM

So they figured out the easiest way to hit their 1 million Bitcoin target, by dipping into their gold reserves. That’s straight from the senator's statement.

https://cointelegraph.com/news/senator-lummis-says-treasury-should-convert-gold-bitcoin-reserve

Quote

Senator Lummis' Bitcoin strategic reserve initiative includes provisions to acquire 5% of the total Bitcoin supply — 1 million BTC — to be held for 20 years. As mentioned earlier, this ambitious goal would cost approximately $90 billion at current market prices.

For anyone wondering how the US could pull this off, converting gold reserves into Bitcoin seems like a no-brainer. It’s a smart play, diversifying their reserves while potentially becoming the largest Bitcoin holder in the world. If they actually do this, they’d dominate crypto reserves, which is a massive flex on a global scale.

I'm still wondering how they will go about converting their gold reserve to Bitcoin, in the area of where they will get the liquidity to do that because US gold reserve is massive which is over $500 billion. I don't know who will be willing to buy that from them and why will someone buy that and not put the money in Bitcoin that the US are shifting to. This entire thing is not still clear to me yet because of how complex it appears to me. I will be interested in seeing how all these will happen but one thing I know is that it is all good for Bitcoin.

pinggoki

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I guess my goal of selling at 150k for bitcoin isn't going to happen anytime soon, I would definitely get greedy and go for just what I think is the peak at this point, after all, US has the largest gold reserve in the world and I don't think that if they're going to continue with this plan of using their gold to purchase bit, they're going to go half measure, they're definitely going to go big on this one. I do hope that they go through this plan, it seems erratic and a bit weird to many but this can be a game changer for the US economy in some way that I can't imagine or maybe even all of us can imagine but the volatility of the market and the enemies of US might see this as an opportunity to try to go into bitcoin themselves and try to do the impossible which is manipulating the bitcoin market.

Mia Chloe

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A couple of weeks ago I came across some blog posts where according to them senator cynthia Lummis proposed converting US gold reserves into Bitcoin to kinda establish a strategic reserve, I think with the aim to acquire 1 million Bitcoins over the course of five years. The fact is it obvious sounds as much an expensive move as seen.

Gold and bitcoin are two highly demanded assets. Volatility is usually important especially for situations when there is a spike in demand especially if the supply is constant or regulated. In the case of bitcoin, it's grow this mainly as a result of volatility and adoption as both a crypto currency and as an investment. Unlike bitcoin a great percentage of all gold in the world is being regulated by powerful bodies making it very possible for them to manipulate prices if need be.

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Quote from: Popkon6 on Today at 03:02:04 AM

Quote from: Finestream on November 17, 2024, 11:41:38 PM

So they figured out the easiest way to hit their 1 million Bitcoin target, by dipping into their gold reserves. That’s straight from the senator's statement.

https://cointelegraph.com/news/senator-lummis-says-treasury-should-convert-gold-bitcoin-reserve

Quote

Senator Lummis' Bitcoin strategic reserve initiative includes provisions to acquire 5% of the total Bitcoin supply — 1 million BTC — to be held for 20 years. As mentioned earlier, this ambitious goal would cost approximately $90 billion at current market prices.

For anyone wondering how the US could pull this off, converting gold reserves into Bitcoin seems like a no-brainer. It’s a smart play, diversifying their reserves while potentially becoming the largest Bitcoin holder in the world. If they actually do this, they’d dominate crypto reserves, which is a massive flex on a global scale.

It would be best if they could collect or buy bitcoins, because success can only be achieved by holding bitcoins. Because the price of gold has only increased by a few percent per year, but the price of Bitcoin has increased the most every year. In 2024, the price of Bitcoin was close to $40,000 at the beginning, and now the price of Bitcoin has touched $93.4K. Then you notice of course that it is possible to gain five to seven times more in Bitcoin than the price of gold, so the biggest gains from holding Bitcoin alone are through long-term holdings.

Big guys in suits sure do know what volatility is - and they are better off with small percents rather than with the big ones, in my book Grin

Smaller risks.
Still, I hope BTC will benefit the most out of all of this situation.

Popkon6

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Quote from: Finestream on November 17, 2024, 11:41:38 PM

So they figured out the easiest way to hit their 1 million Bitcoin target, by dipping into their gold reserves. That’s straight from the senator's statement.

https://cointelegraph.com/news/senator-lummis-says-treasury-should-convert-gold-bitcoin-reserve

Quote

Senator Lummis' Bitcoin strategic reserve initiative includes provisions to acquire 5% of the total Bitcoin supply — 1 million BTC — to be held for 20 years. As mentioned earlier, this ambitious goal would cost approximately $90 billion at current market prices.

For anyone wondering how the US could pull this off, converting gold reserves into Bitcoin seems like a no-brainer. It’s a smart play, diversifying their reserves while potentially becoming the largest Bitcoin holder in the world. If they actually do this, they’d dominate crypto reserves, which is a massive flex on a global scale.

It would be best if they could collect or buy bitcoins, because success can only be achieved by holding bitcoins. Because the price of gold has only increased by a few percent per year, but the price of Bitcoin has increased the most every year. In 2024, the price of Bitcoin was close to $40,000 at the beginning, and now the price of Bitcoin has touched $93.4K. Then you notice of course that it is possible to gain five to seven times more in Bitcoin than the price of gold, so the biggest gains from holding Bitcoin alone are through long-term holdings.

LogitechMouse

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Quote from: Plaguedeath on Today at 02:30:54 AM

Quote from: stadus on Today at 12:44:43 AM

The USA holds the largest gold reserve in the world, totaling 8,133.46 tons, which converts to about $677 billion in value. If they were to allocate just $90 billion at the current Bitcoin price to buy 1 million BTC, they’d still remain the top gold holder and become the largest Bitcoin holder as well. That’s an insane double dominance in two major asset classes.

They better to make the decision quicker or they will miss the moment to accumulate 1 Million of Bitcoin at $90K, now Bitcoin price rise to $92K, if they keep waiting, Bitcoin price might be hit six figures soon.

However, if The US commit to hold the 1 Million of Bitcoin for 20 years, it means they trust in Bitcoin and see Bitcoin as a store of value.

Bitcoin itself didn't even exist for 20 years.

The question is, will they stand firm with that COMMITMENT that they said. They can say it now, but 2-3 years from now if things go south, they can just say things that are against the commitment that they said out of nowhere.

What I believe is that they saw how Germany profited from the Bitcoins they got that's why they believe that if they can, so do they as well. What I doubt is that the amount of time they will be holding it. 20 years? I mean there's nothing wrong with that, but I doubt that they will be doing it. Also, this will give them power to manipulate the price of Bitcoin on their own will knowing that we only have a finite supply of Bitcoin unlike Gold where you can just mine for a very long time, Bitcoin isn't like that. They might trust it, and they might see it as a store of value, but that 1 million Bitcoin being out of the market is something huge if you will ask me. Well, talking about superpower country like US. Cheesy

Overall, I think it would be better to just buy Bitcoin and don't sell their gold reserves. It's something like diversifying their portfolio.

FortuneFollower

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Quote from: stadus on Today at 12:44:43 AM

The USA holds the largest gold reserve in the world, totaling 8,133.46 tons, which converts to about $677 billion in value. If they were to allocate just $90 billion at the current Bitcoin price to buy 1 million BTC, they’d still remain the top gold holder and become the largest Bitcoin holder as well. That’s an insane double dominance in two major asset classes.

Here’s a quick list of the top gold holders as reserves (ranked by tonnage):

https://www.investopedia.com/ask/answers/040715/what-countries-have-largest-gold-reserves.asp

Quote

United States 8,133.46 tons of gold
Germany 3,351.53 tons of gold
Italy 2,451.84 tons of gold.
France 2,436.97 tons
Russian Federation 2,335.85 tons.

Damn - I hope others will catch up to this reality check by the US and understand what potential lies in such a step, and they wouldn't lose their positions on the list if they all do it as time goes on..

fikrett

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Quote from: Botnake on Today at 01:04:49 AM

Germany, sitting second on the list of countries with the largest gold reserves, seems to be taking the opposite route compared to the proposed US strategy. With the news that " Germany Selling of 49,858 BTC Cost Them Huge Profits," it’s clear they’re offloading Bitcoin, possibly redirecting some of those profits to bolster their already massive gold reserves.

This approach contrasts sharply with the US’s potential move to convert gold into Bitcoin, signaling two very different strategies. Germany appears to double down on traditional assets like gold, while the US seems poised to embrace Bitcoin as a modern reserve asset. Interesting....

As it was said - these BTC's were seized, thus, they needed to be sold off eventually. The law dictates it.
But still - I do think as time goes one, more and more bigger countries will think about what the US shall do first, reserves of BTC, cutting off some regulations, etc.

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Quote from: Plaguedeath on Today at 02:30:54 AM

Quote from: stadus on Today at 12:44:43 AM

The USA holds the largest gold reserve in the world, totaling 8,133.46 tons, which converts to about $677 billion in value. If they were to allocate just $90 billion at the current Bitcoin price to buy 1 million BTC, they’d still remain the top gold holder and become the largest Bitcoin holder as well. That’s an insane double dominance in two major asset classes.

They better to make the decision quicker or they will miss the moment to accumulate 1 Million of Bitcoin at $90K, now Bitcoin price rise to $92K, if they keep waiting, Bitcoin price might be hit six figures soon.

However, if The US commit to hold the 1 Million of Bitcoin for 20 years, it means they trust in Bitcoin and see Bitcoin as a store of value.

Bitcoin itself didn't even exist for 20 years.

And it already topped gold in some aspects - I do think all of this is possible, however, lots of prep work should be and will be done in order to minimize the risks and such. Gov guys don't like when plans are rushed out and do one step forward, then - two steps backward.

betswift

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Quote from: Poker Player on Today at 12:19:37 AM

I sincerely doubt it. I think it's easier to convince congressmen and senators to buy bitcoin with money they can print than it is to get rid of gold reserves, and more so given that many rival central banks like China have been hoarding.

I think you can have both bitcoin and gold reserves and that this will most likely be the case.

Yep - I agree here too.
Of course, if it's such a target that they want it here and now - they "will" do it, however, I don't think such an amount of gold would be converted and passed in being converted at all.

Plaguedeath

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Quote from: stadus on Today at 12:44:43 AM

The USA holds the largest gold reserve in the world, totaling 8,133.46 tons, which converts to about $677 billion in value. If they were to allocate just $90 billion at the current Bitcoin price to buy 1 million BTC, they’d still remain the top gold holder and become the largest Bitcoin holder as well. That’s an insane double dominance in two major asset classes.

They better to make the decision quicker or they will miss the moment to accumulate 1 Million of Bitcoin at $90K, now Bitcoin price rise to $92K, if they keep waiting, Bitcoin price might be hit six figures soon.

However, if The US commit to hold the 1 Million of Bitcoin for 20 years, it means they trust in Bitcoin and see Bitcoin as a store of value.

Bitcoin itself didn't even exist for 20 years.

Botnake

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Germany, sitting second on the list of countries with the largest gold reserves, seems to be taking the opposite route compared to the proposed US strategy. With the news that " Germany Selling of 49,858 BTC Cost Them Huge Profits," it’s clear they’re offloading Bitcoin, possibly redirecting some of those profits to bolster their already massive gold reserves.

This approach contrasts sharply with the US’s potential move to convert gold into Bitcoin, signaling two very different strategies. Germany appears to double down on traditional assets like gold, while the US seems poised to embrace Bitcoin as a modern reserve asset. Interesting....

kotajikikox

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Quote from: Poker Player on Today at 12:19:37 AM

I sincerely doubt it. I think it's easier to convince congressmen and senators to buy bitcoin with money they can print than it is to get rid of gold reserves, and more so given that many rival central banks like China have been hoarding.

I think you can have both bitcoin and gold reserves and that this will most likely be the case.

It is the smart choice as well.

Holding bitcoin of course will be beneficial for them but they always need to consider diversifying. They can't let go of one thing to make way for another. If they want to maximize the benefits for their country, they will hold both. If they manage to pull both that off, they will have such a huge leverage against other countries. Why need to sacrifice gold for bitcoin? For us, average citizens, we probably prefer bitcoin but a country needs to get their hands on every profitable asset as much as possible. If they use gold to buy bitcoin, they probably will not sell all to buy bitcoin.

stadus

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The USA holds the largest gold reserve in the world, totaling 8,133.46 tons, which converts to about $677 billion in value. If they were to allocate just $90 billion at the current Bitcoin price to buy 1 million BTC, they’d still remain the top gold holder and become the largest Bitcoin holder as well. That’s an insane double dominance in two major asset classes.

Here’s a quick list of the top gold holders as reserves (ranked by tonnage):

https://www.investopedia.com/ask/answers/040715/what-countries-have-largest-gold-reserves.asp

Quote

United States 8,133.46 tons of gold
Germany 3,351.53 tons of gold
Italy 2,451.84 tons of gold.
France 2,436.97 tons
Russian Federation 2,335.85 tons.

bitLeap

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Quote from: Finestream on November 17, 2024, 11:41:38 PM

So they figured out the easiest way to hit their 1 million Bitcoin target, by dipping into their gold reserves. That’s straight from the senator's statement.

https://cointelegraph.com/news/senator-lummis-says-treasury-should-convert-gold-bitcoin-reserve

Quote

Senator Lummis' Bitcoin strategic reserve initiative includes provisions to acquire 5% of the total Bitcoin supply — 1 million BTC — to be held for 20 years. As mentioned earlier, this ambitious goal would cost approximately $90 billion at current market prices.

For anyone wondering how the US could pull this off, converting gold reserves into Bitcoin seems like a no-brainer. It’s a smart play, diversifying their reserves while potentially becoming the largest Bitcoin holder in the world. If they actually do this, they’d dominate crypto reserves, which is a massive flex on a global scale.

How can it survive for 20 years if the government will change and regulations are easily changed if they do not have the same view on bitcoin. The US for the next 5 years makes sense because President Trump is now Pro Bitcoin but after that will they apply the same rules regarding state asset reserves?

Poker Player

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I sincerely doubt it. I think it's easier to convince congressmen and senators to buy bitcoin with money they can print than it is to get rid of gold reserves, and more so given that many rival central banks like China have been hoarding.

I think you can have both bitcoin and gold reserves and that this will most likely be the case.

Finestream

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So they figured out the easiest way to hit their 1 million Bitcoin target, by dipping into their gold reserves. That’s straight from the senator's statement.

https://cointelegraph.com/news/senator-lummis-says-treasury-should-convert-gold-bitcoin-reserve

Quote

Senator Lummis' Bitcoin strategic reserve initiative includes provisions to acquire 5% of the total Bitcoin supply — 1 million BTC — to be held for 20 years. As mentioned earlier, this ambitious goal would cost approximately $90 billion at current market prices.

For anyone wondering how the US could pull this off, converting gold reserves into Bitcoin seems like a no-brainer. It’s a smart play, diversifying their reserves while potentially becoming the largest Bitcoin holder in the world. If they actually do this, they’d dominate crypto reserves, which is a massive flex on a global scale.

Topic: USA converting gold reserves into bitcoins (Read 114 times)