USA converting gold reserves into bitcoins - page 2.

avikz

legendary

Activity: 3080

Merit: 1500

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 am sure this statement is his personal and not official. It's more like a suggestion about what he feels about American government should do. I am sure that American government wouldn't spend 90 billion to accomplish it. If they ever decide to own a great percentage of Bitcoin supply, they will do it by confiscating from various companies under false charge of money laundering. Trump alone can't/won't make decisions on such kind of purchases.

It's great that powerful people are showing great confidence on Bitcoin. But it's far from reality to be honest!

asriloni

legendary

Activity: 3038

Merit: 1024

Leading Crypto Sports Betting & Casino Platform

Quote from: stadus on November 18, 2024, 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.

Exchanging 90 billion worth of gold to the Bitcoin is a very smart idea. This is because Bitcoin potentially to reach 1 million value in the future. It's very important to note that if this time people can even afford to sell their house to invest in bitcoin.

Let's say they diversified 90 billion worth of gold to the bitcoin, then they hold it till 1 BTC worth 1 million USD. They will be in 10x profit. Cheesy

It's very important to note that there are less than 2.3 millions of BTC in the exchange sites now.

Quote from: Iranus on November 18, 2024, 05:48:10 AM

I used to be skeptical of Trump's idea of making bitcoin a US reserve asset but with this idea it clearly becomes much more realistic. The United States is almost always at the top of the list in every field, not only having the world's largest gold reserves but also the world's largest oil reserves...So it's no surprise that they're also at the forefront of creating the cryptocurrency demand trend and have more bitcoin in their national reserves than any other country.

Another thing we need to know is that Republicans controlled both the Senate and the House in this year's elections, and that means if Trump sticks with this idea, it will be much easier to pass. So this idea is becoming more and more realistic than we think.

https://www.dw.com/en/us-republicans-win-house-control-both-houses-of-congress/a-70773778

Let's keep our optimism to see bitcoin to be adopted as a strategic reserve.

This time, the bill is still in committee review. We'll know the results after it reaches senate vote.

AbuBhakar

hero member

Activity: 1120

Merit: 554

🇵🇭

Highly doubt it. US will not make a bold move such as sacrificing their gold reserve in exchange for FOMO investment on Bitcoin. They should done this before not now when many big player is already loaded and setup.

This is too risky considering how volatile the Bitcoin price while many big investors might use their liquidity to exit their big holdings since themarlet can absorb already big sell once they enter.

They have unlimited fiat. Just like what is doing, they can purchased Bitcoin using their money printer.

m2017

legendary

Activity: 1792

Merit: 1296

Crypto Casino and Sportsbook

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.

The initiative of one senator doesn't mean that this initiative will be accepted and the US will convert gold reserves into bitcoin.

To be honest, it seems strange to me that they are converting one asset into another. Wouldn't it be easier to just print some green paper and buy btc with it?

It would be cheaper.

How can such a conversion technically take place? There is no direct exchange of gold bars for bitcoin. The Americans are not going to take gold out of Fort Knox by the trainload, sell it (try to find a buyer) and buy bitcoin with the proceeds. It seems to me that the US will not touch the gold reserves, but will get bitcoin in another way. One option is to confiscate it from its citizens (there was a similar story with gold in the past), setting a limit on personal ownership.

How do you like that?

freedomgo

legendary

Activity: 3248

Merit: 1160

Playbet.io - Crypto Casino and Sportsbook

Quote from: Marvell1 on November 18, 2024, 08:49:17 AM

I guess before making bitcoin a national reserve currency, they will try to completely dominate the crypto market so they can easily manipulate it in their favor.

The only way they can achieve that is by accumulating 1 million Bitcoins, giving them control of about 5% of the total supply, making them the top Bitcoin holder. If this is for their national reserve, it’s clear that the intent would be to HODL, not to manipulate the market.

Manipulating the market would completely go against the principles of good governance. It’s not just unethical, it’s illegal, and don't forget, they even charged Binance for market manipulation, so for them to do it themselves wouldn’t make any sense. It would contradict everything they claim to stand for. If anything, this move seems more about securing a strong position in a valuable asset rather than trying to influence prices.

Fivestar4everMVP

legendary

Activity: 2422

Merit: 1083

Leading Crypto Sports Betting & Casino Platform

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.

US government holding 5 percent of the total supply of bitcoin which equals to 1 million bitcoin is actually very large, but does not make them the largest holders of bitcoin in the world, remember that Satoshi nakamoto's bitcoin wallet address contains over 1 million bitcoins, and there is every possibility that this funds can still be accessed. So which such a large holding, Satoshi nakamoto still will remain the largest holder of bitcoin except the US government decides to buy and hold much more bitcoins than just 1 million, which I know they are capable.

But again on the other hand, I might be wrong as regards to Satoshi's bitcoin holdings, what I said here is based on my personal research as of 1 going to 2 years ago, I don't know if anything have changed since then, I will try to find out if anything have changed since the last time I did this research, will do this when I have the time.

Marvell1

legendary

Activity: 2408

Merit: 1102

Leading Crypto Sports Betting & Casino Platform

Quote from: Popkon6 on November 18, 2024, 03:02:04 AM

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.

Governments hold gold because they need the stability of gold to ensure that if the economy becomes unstable or in trouble, they can use gold to save the economy. They don't hold gold for investment or speculation, so I don't think the US government is proposing this for the purpose of investing in bitcoin and making a profit.

Have you ever thought what would happen if bitcoin price doesn't increase like you said and bitcoin gets dumped due to some unexpected event? What do you think the government will do next? Don't tell me that scenario can't happen, anything can happen and we have seen bitcoin price drop 70-80% in value many times in the past. I wonder how the government will deal with this problem?

I guess before making bitcoin a national reserve currency, they will try to completely dominate the crypto market so they can easily manipulate it in their favor.

AVE5

full member

Activity: 350

Merit: 128

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

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.

US itself has also played several promotional terms on bitcoin adoption which has twisted a lot of peoples mind to reliably adopt the use of bitcoin.
We can see how obvious the US government and the wealthiest entrepreneurs like Elon Musk and others has so much pushed forward to a valuable persistent of bitcoin up to date.
So it would be a slack of the US government if they don't foresee the potentials of bitcoin to be equal to the tasks of their financial and economy reserve.
However, the tendencies of the US government available to purchase that sum of 1million of bitcoins would not only make them them the largest country holding bitcoin. They already holds over 212,847 of bitcoins which has already got them the highest holders while the anticipation of them buying 1millions of bitcoin is ideal to increase their portfolio on bitcoin while realized that the volatile liquidity of bitcoin would give them more values than that of gold in same specific period of 20 years.

Die_empty

hero member

Activity: 686

Merit: 987

Give all before death

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

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.

The US doesn't need to dispose of its gold reserve to buy Bitcoin. There is a need to keep diversifying their economy. They should just stop selling the seized Bitcoin at their disposal and could set out funds from other sources to buy Bitcoin.

Quote from: icalical on November 18, 2024, 05:37:09 AM

While the US gold reserves are valued at about $675 billion market rate, enough to buy more than 1 million BTC, I think such a move would disturb the gold market, sparking price declines and subsequent ripple effects on the economy. As far as I know the Bitcoin Act containing this proposal still has no cosponsors, and increased anxiety over Bitcoin's volatility raises yet another layer of skepticism from lawmakers and analysts. Even crypto optimists like Michael Novogratz are skeptical of the US taking up the move anytime soon.

Volatility shouldn't be a problem since they will be investing for a long time. The sponsors of the bill should be able to convince other lawmakers that the four-year circle of Bitcoin is certain. El Salvador and Bhutan are in profit and the US can also take advantage of the benefits Bitcoin offers. The problem is that there are so many Bitcoin critics and haters in the legislative arm, the bill might not get the required votes to become law.

Sanitough

hero member

Activity: 2856

Merit: 674

Quote from: justdimin on November 18, 2024, 07:06:22 AM

I am sure that they will always have a lot of money from taxes, they are already spending trillions every year, just military spends 1+ trillion, so 90 billion would be nothing to them but the problem is that they can't buy it all for 90 billion, the moment they start to buy, the price will end up getting higher and higher, and that would be the most important part and would have been a good deal for the long term without a doubt.

The plan to accumulate means they’ll likely set a buying schedule, whether it’s monthly, quarterly, or yearly. Of course, they could also opt for a one-time bulk buy if they’re confident enough. Either way, if Bitcoin pumps, it works in their favor, as the value of their Bitcoin reserve will increase significantly.

If they’re aggressively aiming for 1 million Bitcoin, it does raise an interesting question: does this mean they no longer see Bitcoin as the high-risk investment they once described it to be? It feels like their mindset is shifting, maybe they now view Bitcoin as a more stable or strategic reserve asset rather than just a speculative gamble.

justdimin

hero member

Activity: 3164

Merit: 675

www.Crypto.Games: Multiple coins, multiple games

Quote from: Popkon6 on November 18, 2024, 03:02:04 AM

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.

I would guess that if they ended up buying it all together, it would not be all that much of a big trouble. First of all, they do not need to buy a full million, they already have a lot of bitcoins as they seized bunch of them, and considering all the situation they are in, we shouldn't really consider this to be a big deal at all, we need to consider this as a better deal.

I am sure that they will always have a lot of money from taxes, they are already spending trillions every year, just military spends 1+ trillion, so 90 billion would be nothing to them but the problem is that they can't buy it all for 90 billion, the moment they start to buy, the price will end up getting higher and higher, and that would be the most important part and would have been a good deal for the long term without a doubt.

fikrett

jr. member

Activity: 70

Merit: 1

Quote from: icalical on November 18, 2024, 05:37:09 AM

While the US gold reserves are valued at about $675 billion market rate, enough to buy more than 1 million BTC, I think such a move would disturb the gold market, sparking price declines and subsequent ripple effects on the economy. As far as I know the Bitcoin Act containing this proposal still has no cosponsors, and increased anxiety over Bitcoin's volatility raises yet another layer of skepticism from lawmakers and analysts. Even crypto optimists like Michael Novogratz are skeptical of the US taking up the move anytime soon.
https://www.cryptopolitan.com/senator-lummis-proposes-swapping-federal-reserves-gold-for-bitcoin-reserves/

Political and logistical barriers make the above-mentioned plan highly improbable. An ultimate sale of gold in such a large amount is definitely risky, while the purchase of Bitcoin would highly increase its price, hence costs. At any rate, Trump's approach is far more cautious, considering holding onto the seized Bitcoins, not making major new buys. The plan could lead to making the US's reserves even more diversified and reinforcing US crypto leadership, but when and how that could happen are very much in question.

They are called reserves for a reason, but I do think as time goes on, they (govs guys) will see more pros in it. And imagine this news - "US becomes one of the biggest holders of BTC with its reserves reaching X". The prestige and the hype around news like this, of course, would cause the market to grow crazy.

Iranus

hero member

Activity: 1792

Merit: 534

Leading Crypto Sports Betting & Casino Platform

Quote from: stadus on November 18, 2024, 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.

I used to be skeptical of Trump's idea of making bitcoin a US reserve asset but with this idea it clearly becomes much more realistic. The United States is almost always at the top of the list in every field, not only having the world's largest gold reserves but also the world's largest oil reserves...So it's no surprise that they're also at the forefront of creating the cryptocurrency demand trend and have more bitcoin in their national reserves than any other country.

Another thing we need to know is that Republicans controlled both the Senate and the House in this year's elections, and that means if Trump sticks with this idea, it will be much easier to pass. So this idea is becoming more and more realistic than we think.

https://www.dw.com/en/us-republicans-win-house-control-both-houses-of-congress/a-70773778

hd49728

legendary

Activity: 2044

Merit: 1018

Not your keys, not your coins!

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

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.

They will never convert all their gold reserve to Bitcoin, never. They can convert part of it to bitcoin and that's all. As a Bitcoin investor, I would like to see the US. government to convert all their gold reserve to bitcoin, but I am realistic to know it won't happen.

If they only keep confiscated bitcoin from criminal as their national reserve, I am happy with this move. If they do more, like convert part of their gold reserve to bitcoin, it's very big news for Bitcoin community and the market will react positively with this big move. In Bitcoin market, FOMO plays very important role to lift the price up to a new ATH and new higher level. We know after a ATH, price will be corrected a lot but the good news is a new higher level is set up.

Then we will have new Never Look Back Price band.
https://charts.bitbo.io/never-look-back-price/

icalical

sr. member

Activity: 1400

Merit: 268

Fully Regulated Crypto Casino

While the US gold reserves are valued at about $675 billion market rate, enough to buy more than 1 million BTC, I think such a move would disturb the gold market, sparking price declines and subsequent ripple effects on the economy. As far as I know the Bitcoin Act containing this proposal still has no cosponsors, and increased anxiety over Bitcoin's volatility raises yet another layer of skepticism from lawmakers and analysts. Even crypto optimists like Michael Novogratz are skeptical of the US taking up the move anytime soon.
https://www.cryptopolitan.com/senator-lummis-proposes-swapping-federal-reserves-gold-for-bitcoin-reserves/

Political and logistical barriers make the above-mentioned plan highly improbable. An ultimate sale of gold in such a large amount is definitely risky, while the purchase of Bitcoin would highly increase its price, hence costs. At any rate, Trump's approach is far more cautious, considering holding onto the seized Bitcoins, not making major new buys. The plan could lead to making the US's reserves even more diversified and reinforcing US crypto leadership, but when and how that could happen are very much in question.

betswift

copper member

Activity: 56

Merit: 1

Quote from: Moreno233 on November 18, 2024, 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

sr. member

Activity: 434

Merit: 253

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

sr. member

Activity: 1666

Merit: 426

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

sr. member

Activity: 448

Merit: 560

Crypto Casino and Sportsbook

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.

?

Activity: -

Merit: -

Quote from: Popkon6 on November 18, 2024, 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.

Topic: USA converting gold reserves into bitcoins - page 2. (Read 459 times)