USA converting gold reserves into bitcoins - page 3.

FortuneFollower

copper member

Activity: 168

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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.

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

jr. member

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Merit: 1

Quote from: Botnake on November 18, 2024, 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 November 18, 2024, 02:30:54 AM

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.

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

copper member

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Merit: 1

Quote from: Poker Player on November 18, 2024, 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 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.

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

hero member

Activity: 2856

Merit: 667

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

full member

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Quote from: Poker Player on November 18, 2024, 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

legendary

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Hhampuz for Campaign management

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

sr. member

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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

legendary

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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

hero member

Activity: 3052

Merit: 606

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 - page 3. (Read 442 times)