Topic: USA converting gold reserves into bitcoins (Read 564 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.

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@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.

Regardless of how the US gets into Bitcoin either by selling Gold or printing more
$'s the fact is if they do it at all it will be massive. The GS will be seen as leading the
way and IMO there will be more countries looking to follow what the GS do.

If you are looking for the price of Bitcoin to go up this will be  big trigger.

If you are worried that the actions of governments and institutions will push
the price further up and affecting the amount of Bitcoin ordinary people
can afford to buy you wont want the US government getting into it.

its a double edged sword.

Doubting the capacity of Government is something I won't do ,they're the one in charge and runs the affairs of Government and each Government has what is in his agenda to fulfill,  I think at some point there's no need to doubt, you just have to watch things to unfold,  who knows what the reset and new world order is gonna be,  yes Gold has been the traditional reserve asset,  but does it mean that if the Government found an asset that can outperform gold that things can't switch,  and since the Government likes control, dont you think they may think the way to control it is to try to own the largest share.

That would be a bad move, gold has been valuable for thousands of years and it will remain valuable for a long time as well, which makes it the best asset possible to have as reserves, getting rid of it when other countries are hoarding it really does not make the most sense, and this is especially true when it comes to governments, which can just increase the speed of their money printing machines and buy all the bitcoin they want with it.

I don't know how true this information is, but However it could be possible for them to convert the gold reserved to bitcoin reserve but it would be on Mutua l agreement. And Morover gold is also an asset so there is need for diversification of assets into different categories. I believe gold will be held as a reserve asset why they can still buy bitcoin seperatly as an online asset.  if they chose to sell some portion of the gold to invest in bitcoin then fine by them.

They will use the U.S. dollar to purchase BTC if they are going to go ahead with their plans of a BTC strategic reserve, i don't think they will convert their gold reserves into BTC. Gold is a stable store of value and i am sure the U.S. government trust it more than BTC that is very volatile, so they will rather be looking to increase their gold reserves, than converting some of it into BTC and in doing so reduce their reserves.

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! 

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.  

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



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.

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.

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?

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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/

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 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.

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.

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.

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.

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

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.

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.

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.

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..

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.

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.

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.

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.

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....

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.

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

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?

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.

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

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.