Topic: What if the US Govt. buys circulating Bitcoin Supply and $ is backed by $BTC ? - page 2. (Read 296 times)

In theory,the US government can print 1 trillion dollars and try to buy all circulating BTC.Here's what will happen:
1.The Bitcoin price will hit the moon.Good for us!
2.Many BTC HODLers and traders might decide not to sell,which will pump the price to the moon even further.
3.Such decision will be heavily criticized by the political opponents.What's the point of printing 1 trillion dollars and spending them for a cryptocurrency,instead of helping the poor people and small business owners?
4.Inflation in the US and the US dollar decreasing it's value even more.

Kremlin buying Bitcoins?Are you kidding me,OP?Russia will never become a pro-Bitcoin country.
The idea of Russia buying Bitcoins is beyond my wild imagination.

Official data says that the number is over 1000 BTC, more precisely 1120 BTC after the last purchase, and since Bukele always buys dip, it is possible that this number will change in the coming days.


No one can buy the total supply not only because there are people who will never agree to the sale, but also because there is an unknown percentage of BTC that is irretrievably lost. In addition, 2+ million BTC has not been mined yet.

Hah! Yeah, every time someone talks about defi and finance detaching itself from traditional finance I just wonder which world they live in. Do people on defi forget newcomers still need a way to buy crypto to use defi, or that they also still need a link to traditional finance to realise their gains?

Never mind that the products and services of defi aren't even able to substitute traditional finance, let alone displace it... Defi people largely ignore the fact that those most in need of finance are less able to access defi services than traditional ones. Be it due to a lack of tools or even the technological infrastructure. Makes my eyes roll up every time someone says defi is for the people and the masses and the unbanked when clearly the only ones able to use defi are crypto able and those most benefiting are the wealthy.

DeFi is just a market for trading altcoins to altcoins in a more or less decentralized way, despite its loud claims, it's not going to ever replace traditional finance, DeFi can't even do a fraction of what traditional finance does.

The government always knew about crypto and it wasn't a threat to them back then, and it's not really a threat now, cause otherwise they would stopped it. And inb4 you say crypto can't be stopped, I will say yes it can, as long as you control or block large centralized services, adoption will be stifled.

They can't simply because circulating bitcoin supply is not for sale. Only a small portion of it is. For example I won't sell the amount of bitcoin I have accumulated to anyone least of all the US gov!

Why should I give a rats behind?

Crypto (ie. altcoins) are pump and dump which is why they are looked down on.

Wrong on both part.
DeFi is just another scam method to take people's money and it will stop on its own in near future when the hype goes away.

They can at any time stop "crypto" that is centralized such as majority of altcoins. But they could never stop something as decentralized as bitcoin. Not in early days and not now and not in the future.

LOL.

You also answered your own question in second sentence. If one government does it, they will do it so "all circulating supply" won't be in hands of one gov.

When governments print money, that money loses its value. So if currently they can swap 60000 of their paper money with 1 bitcoin, if they start printing more they soon realize that they have to swap 600000000 of their paper money for 1 bitcoin.
This is what has been happening for as long as paper money existed and is known as inflation. You usually see it in rising food, rent, utility, etc. prices.

USD hasn't been backed by gold for a very long time and time for it to "reign supreme" is already up as the world is very slowly moving away from it.

DeFi crypto can and will be stopped because, unlike Bitcoin, they are extremely centralized. Even government officials clearly understand that: DeFi Not Immune to SEC Oversight, Gensler Says: Report

Bitcoin is acquiring trust because there are no corrupted rulers behind it that can manipulate its supply at will.

El Salvador didn't capture the entire BTC supply, as far as I know they managed to obtain less than 1000 btc. The US Government can't buy the whole supply either because it is being held by diamond hands who would rather die than sell their bitcoin.

Actually, we once had "One currency". It was gold. Later governments seized people's gold and gave them paper currency in return. Bitcoin is not so easy to confiscate due to its beautiful design.


First, it would cause unprecedented devaluation of the dollar. Second, Bitcoin's price would skyrocket and everyone would become even less willing to sell their bitcoin.

They can't control Bitcoin, they won't be able to control a financial system based on it.

It could be too risky for the country to buy all of the bitcoin supply and hold it and I do not think that the government will do that. They are just worried if the bitcoin price is soaring so high before they fully learn the details about bitcoin and how they can use it for their benefit. They consider bitcoin a threat to their currency because bitcoin is for individual choice and is not related to the country's currency. In the end, people will sell their bitcoin to have fiat money.

But any country can buy as many bitcoin as they want, like what El Salvador did but we never know their reason to do that. But they can learn from what El Salvador did and who knows, they can get something from that story.

El Salvador are doing first steps to bring Bitcoin to more nations and have more bonds with governments. In the near future I think small countries will have more interests and real activities to follow El Salvador.

The next stage is the responses from traditional agencies and foundations. It will be another important phase because it will be a boost or a barrier for further growth of Bitcoin legally. I don't think this phase will be finished too easily but let see.

Does BTC (Bitcoin Community) care who and what they are thinking? The US has enough money to accumulate circulation of Bitcoin and reserve it. Then what? Will not it be useless? It's not easy to accumulate all the circulation at all but it won't happen in cryptocurrency. Decentralized things if you make it centralized then definitely it will be useless. If there is no Community for a coin means just a piece of code. To increase the value of a cryptocurrency must need a strong Community. So what you are thinking not gonna happen. But yes, everyone could their own cryptocurrency they need.

I agree. Whether the other countries find value in Bitcoin or not, it cannot be denied that it has value. The company of the richest person on earth has more than a billion in Bitcoin. Some people on Wall Street have accumulated Bitcoin.

The ball is not in the US government's hands anymore. The value of Bitcoin is to be determined by the people all over the world and they have already spoken. The numbers are saying that Bitcoin is indeed valuable. It is coveted. Bitcoin is worth more than $1 trillion.

It is too late to insist that Bitcoin is just another internet novelty, a sort of a fad, or whatever. The time for buying is now.

Even if countries start investing significant amounts to buy BTC. They will be out whaling the whales. The prices might shoot up high initially but they might also stabilize as well. El Salvador is just a start. If major institutions and even countries start HODLing BTC then the times would only get more interesting. The cycle lengths will change quite a bit.

Not just US, but no government in this world will buy out the bitcoin supply and use them asa reserve currency for their fiat money. No government would ever try to do that. Because bitcoin not a thing that they can control, even if they buy out all available supply from the market.

Governments can surely invest in bitcoin to receive higher return than the market rate, but won't make it as a reserve currency because everyone understands that bitcoin thrives in decentralized manner. Buying out available supplies is not going to help the network.

This would not work at all since dollar is more of a stable option which does mean if we back it up using something like bitcoins, it would make the whole ecosystem of financial side shake. That does mean that adding bitcoins as a secondary system might be sustainable but using it to back dollar up would be not a good option at all.

A currency needs :
Stability
Value

They can totally take a page out of El Salvador's book and think about accepting bitcoins more in the US. This would not only be beneficial for them but for the whole community as well.

Crypto is not getting mainstream. It is mainstream. Stocks, fiat anything crypto performance is undoubtedly way better than them especially during the pandemic. Crypto is here to stay..

As somebody very well said, it's a person who can't even get her e-mails right.
She just wanted to get some attention. And.. mission accomplished: now everybody is talking about her and bitcoin.
Still, it doesn't mean she has a clue.


Sad to say, but you don't seem to have a clue either. (1. This is not what El Salvador did; 2. $1T won't be enough).

Who is Hillary Clinton that anyone in the world needs to worry about what she thinks?


If you think they didn't know then you are grossly mistaken, because they knew and were aware from the very beginning, especially if you mean the US government. If you know who Gavin Andresen is, it's interesting to whom he lectured on Bitcoin back in 2011.


El Salvador is not trying to buy all the Bitcoin that exists, nor would any other country try such a stupid move that would cost much more than just $1 trillion. But let's say the US does just that, how much do you think 1 BTC would be worth then?

Hillary Clinton is alarmed by the rise of BTC.

Crypto was looked upon as some kind of a weird speculative currency/asset in the past. BTC is getting more and more mainstream now.

With the rise of Defi's crypto is pretty much detaching itself from the Govt. and it looks like it cannot be stopped. If the govt knew about crypto and its implications years ago they could have stamped it out. Now, it is too late for them.

The US Govt has a right to be concerned because BTC is acquiring "trust" among the masses.

Just like El Salvador, US could also try and capture the entire BTC circulating supply. And, if the US Govt. doesn't then Kremlin or other countries might. We never had "One Currency" through out the world. In US $BTC = 1 Canadian $BTC = 1 Nigerian $BTC.

So, the US Govt. can easily print out $1 Trillion Dollars which is not really all that much when you compare it to gold and then capture the entire circulating supply and use it as a reserve.

Then they can pretty much make dollar reign in supreme again by backing $BTC to the dollar just like how they backed it to the gold standard in the past.

My point is we could see major Govt. could rush in and buy as much BTC as possible if it becomes mainstream. Major institutions are already starting to use BTC as a hedge. Only a matter of times before the really Big Boys will step in. This way the US could actually control the Global Financial System.