Bitcoin's role in the global economy and its massive reserves

Right now, the world is going digital thanks to tech advancements. Because of this, every country’s economy is shifting towards digitalization, and there’s a growing interest in using cryptocurrency, especially Bitcoin, as a key asset. So why are people eyeing Bitcoin as a strategic asset? Well, here are a few reasons: ▫️ Fiat currency is facing inflation ▫️ Current global trade dynamics ▫️ People are losing faith in traditional currencies Now, let's take a look at how much Bitcoin different countries hold and what their economic situations look like. Bitcoin is decentralized, which means no one really controls it. This also makes it tricky to pinpoint exactly how many Bitcoins an individual has. However, some people and institutions have made their Bitcoin holdings public. Here are some stats on a country and its Bitcoin reserves: United States: Among the known Bitcoin in existence, the US holds the most. 🔹 Government Bitcoin Holdings: 207,189 BTC, most of which were confiscated from criminal activities like the Silk Road and Bitfinex hack. 🔹 Public Companies Holdings: ▪️ MicroStrategy: 582,000 BTC and counting, they keep buying more. ▪️ Robinhood Markets: 136,755 BTC. ▪️ Marathon Digital (MARA): 49,179 BTC. ▪️ Riot Platforms: 19,225 BTC. ▪️ CleanSpark Inc: 12,502 BTC. ▪️ Tesla (TSLA): 11,509 BTC. ▪️ Hut8 Corp: 10,264 BTC.

Not going to be categorically stated, the insightment of bitcoin being considered an asset is it volatility potential and the scalability of it wide range adoption as a bond that ignites it values. Hence investors are willing to buy and hold in it blockchain, it'll always preserve sustainable values and as such that it's decentralized and maintains it potentials, there it's considered as hedge against inflation but not formally termed to be a strategic asset rather, it's users and hodlers find it as a strategy to store their funds.

Satoshi's bitcoins should not be considered to be unclaimed. There is no indication that the private keys are lost and the wallets can no longer be assessed, we should expect the founder of Bitcoin knows how to safely secure his recovery details. All we can speculate is that satoshi has refused to move any Bitcoin there so as not to significantly influence the market. We can expect that lots more Bitcoin is held by private individuals all over the world. The inflation of fiat currency and loss of faith in it is a factor, but the biggest one is the deflationary qualities of Bitcoin and its fixed supply.

I just checked the first wallet 1LdRcdxfbSnmCYYNdeYpUnztiYzVfBEQeC and noticed that it keeps receiving deposits up to yesterday. Can someone tell me if those are donations or there is something else going on with the wallet. The other wallets also receive similar transactions as well. I'm just being curious since they are wallets of Satoshi, the founder of Bitcoin.

And the profitable part of bitcoin, don't forget. Many countries look at bitcoin and see potential profit which is why they think it would be beneficial to hold bitcoin as their strategic reserve. Of course, there is no real confirmation of their intentions but one can assume. This is only what we know of. For all we know, these countries may have been buying bitcoins on their own under different names as to not raise suspicions. They might also be hiding from us the real amount of crypto they have been holding. It has been rumored that UAE has the highest amount.

What is the benefit of bitcoin as a strategic asset or store of value for the economy in general? For mere mortals like us on a daily basis? I think that the more its value increases, the less its holders will spend it or use it as a form of payment. I'm not saying that this is wrong, because as a form of investment it's great. But, bitcoin was created to be a digital alternative to traditional money, with the main aim of enabling direct financial transactions between people, without the need for intermediaries such as banks or governments. https://www.bitcoin.com/satoshi-archive/whitepaper/#abstract There's a lot of talk about bitcoin overtaking fiat money as the future of payment methods. But what is its real use now? If it isn't used for the purpose for which it was created, it will end up becoming useless, as it is becoming increasingly concentrated in the hands of a few.

I disagree about this 21% of so far mined bitcoins into stronger holding. Because, I am not ready to keep my belief on all those corporates and governments to treat bitcoin like a gold reserve to keep forever. They may dump at any time to realize the profits. I guess that we do not need stronger holding but mass adaption. Still right now, these corporates are doing exactly what bitcoin needs. I mean, they spread awareness on bitcoin's potential and over the time bitcoin will reach a state what gold is enjoying now. Yeah, bitcoin is at right direction but we need more patience.

It's not impressive to conflate banks, ETFs, liquidation trusts etc that hold BTC on behalf of people. Hell, even Microstrategy could see some of its reserves liquidated if it were for BTC's price to be under its target when their bonds expire. Legally speaking they aren't a bank, but essentially it's like they practice fractional reserve on behalf of its bond holders. I don't think reserves play any significant role here. Compared to gold, much more of the supply is in reserves and also much more of the production gets placed directly in reserves. So I'd say bitcoin hasn't reached the state of being a reserve yet. We're far from it actually and likely will never be there. The fact that bitcoin is so liquid by design means its better as a transactional tool.

I wish i never treated btc as p2p. if I treated it as buy and hodl I would have 2-3 million dollars vs the 400-500 k I have from btc. I no longer consider it p2p for money payments.

Most persons made mistakes in their earlier dealings with bitcoin because they failed to view bitcoin as the valuable asset it is. It is a good thing you recognised your faults and you have straightened yourself in the right attitude now. Good things is that bitcoin is still in it's early days and it would still continue to do well on the long run and as long as you remain committed to your ongoing accumulation journey, 2 - 3 million dollars is possible for you still and even more. Take it easy on yourself, you'll get there soon

The activities of a gentleman named Laszlo Hanyecz are still in the pages of history. This gentleman bought only two pizzas for ten thousand bitcoins because at that time, the value of bitcoin was equivalent to two pizzas and at that time, bitcoins may not have had that much value for people. Laszlo Hanyecz is not the only person who did such a stupid thing, but many other people at that time may have done such a stupid thing by undervaluing bitcoin, although they are now regretting their stupidity a lot. At that time, they did stupid things without knowing it, but now I hope that people will not do stupid things knowingly. At the level where the price of bitcoin is now, it is not impossible to hit one million or two million dollars from this level, but even then we are not buying bitcoins, but when the price of bitcoin really goes to this level, we will regret it again.

You do not have enough information to be proclaiming that Laszlo did a stupid thing by buying two pizzas for 10k bitcoin, which was in mid-2010 when bitcoin did not even have a price (or at least the 2 pizzas for 10k bitcoins might have had been the then going rate for bitcoin). From my understanding, Lazlo engaged in such pizza buying on several occasions that came after his first time buying the two pizzas for 10k bitcoin.  Sure the price for the pizzas might have had been different for each of the subsequent purchases, yet there is no evidence that Laszlo is regretful of such transactions or that he overly spent his bitcoins as compared with a lot of others who likely sold too many bitcoin too soon with expectations to buy back bitcoin cheaper than their sales price or other ways that some folks likely had been failing/refusing to manage their bitcoin holdings so that they were not spending/selling large portions of their stash... and surely there are also a lot of examples of guys who knew about bitcoin, yet they were failing/refusing to buy bitcoin. It seems to me that there are also differences between miners (or other folks who might have had been engaged in businesses that earned bitcoin) and people who accumulated their bitcoin by buying them through the years.  I will acknowledge there have been a lot of folks, including miners who likely did not hold onto enough of their bitcoin through the years (so they were likely selling too many of them too soon), yet the mere fact that a lot of bitcoin passed through the hands of some of those kinds of people is not enough information to proclaim that they either did not accumulate enough bitcoin or that they sold too many bitcoin too soon.  To come to such a conclusion, we would need to know more about the particulars of such person(s). Also, we probably should attempt to provide more realistic and/or contemporary examples rather than fantasizing about the particulars of early adopters from 2010, 2011, 2012 and/or even 2013.  Sure, if we know some facts, then we can maybe describe such facts, yet it seems that so many guys fantasize about the holdings of earlier bitcoiner out of mere fantasy rather than really having some meaningful point that they are trying to make.  It seems problematic to be presuming that guys who sold a lot of bitcoin more than 10 years ago made mistakes merely because they sold a lot of coins back then.  If we do not know how many coins they had in total or other aspects of their finances and their circumstances, then we are just engaging in bullshit propaganda (and fantasizing) spreading if we presume that such earlier bitcoiners managed their bitcoin holdings badly merely based on knowledge that we have regarding their having had sold a lot of bitcoin at various points in the past.

Initial failures of Bitcoin are forgivable as, as it is depicted in the well-known example of pizza, people did not see the long-term prospects. At that time, there was no market, no institutional demand and no international economic significance to Bitcoin. The state of affairs is the opposite of that today. Having more reserves, global acknowledgment, and growing integration into the financial system, nowadays Bitcoin is regarded as the insurance against inflation and declining fiat currencies. Although it may seem radical that future price targets may be one or two million dollars, they are not unrealistic as long as adoption keeps growing. The lesson is now to learn on the past, rather than dismissing Bitcoin just as it is premature, making consistent and knowledgeable moves will make one regret it later.

The United States does not have a strategic bitcoin reserve, all they possess is an executive order signed by the current president. That means they can sell those bitcoins whenever they want. Similar to MicroStrategy, in a recent interview, they admitted that if the price of Bitcoin drops sharply and if it negatively affect the company. They will not hesitate to liquidate bitcoin to save the company. The same will happen with other companies holding bitcoin. So you are right, it is too early to consider bitcoin as a reserve asset or a strategic asset like gold. Bitcoin is on its way to achieving that, but not right now, and it will take a long time.

I just responded to another of your posts in another thread Ayers.  I am getting the sense that you really do not understand bitcoin, even though you have been registered here on the forum as long as me.  You also do not seem to have hardly any clues about what MSTR is doing and/or the various ongoing supply pressures on bitcoin that is coming from various holders of bitcoin whether institutions, governments and/or status quo rich folks who are increasingly recognizing bitcoin as a place to put value for the long term.  At the same time, a lot of retail are confused about bitcoin and its value, so a lot of retail seem to be oblivious to the ongoing accumulation of bitcoin by institutions, governments and/or status quo rich, and you are out there poo pooing bitcoin as if you happen to know something, when in fact you are like a lost puppy who has not figured out bitcoin in the past 12-ish years. Accordingly, tt seems that you are helping to spread disinformation or to suggest that bitcoin might not be a good place to be putting time, energy and value. It sounds as if you are hoping for downward BTC prices rather than for up, even though we have already gotten a 36% drop from our October 6th ATH of $126,272.  Surely you would be a bit more positive and bullish about bitcoin if you had been spending the last 12 years accumulating and holding bitcoin rather than seeming to have had not learned what bitcoin is over the past 12-ish years... and what are you doing?  Trying to trade it?  That is not a very smart approach for anyone who might be striving to build his bitcoin holdings. That is too bad for you that you have not figured out bitcoin after 12 years of being registered on the forum.  Hopefully, for your own good, you have been able to accumulate and hang onto at least some bitcoin instead of continuing to not seem to know what to do since you are talking bitcoin down when I doubt that it is good for anyone to not be buying bitcoin in the event that they don't yet have enough bitcoin.   You probably don't even realize that it is still not too late to shape up and start to focus on some kind of a bitcoin accumulation strategy that involves ongoing, persistent, consistent, regular and perhaps even aggressive buying of bitcoin rather than focusing on what you seem to believe to be negative attributes of bitcoin.. .which are likely more in your head than reality..    It is quite likely that you are playing a losing game if you are betting against bitcoin and you failing/refusing to accumulating through ongoing buying of it.. but hey, you are free to do what you want if you seem to not be able to figure out that bitcoin is a place that you should be building your holdings in the even that you have so far failed/refused to accomplish such... It tends to take a long to build a bitcoin holdings, and even longer if you don't put some effort into it and you are fucking around trying to trade it rather than focusing on various ways to buy it and also to make sure that your cashflow management systems and practices are strong too.

The US government has a Bitcoin reserve that holds about 326,000 Bitcoin. They came true seizures and the current government said they are never going to sell it. Policies could change, but for now, unlike Joe Biden, who is always selling, Donald Trump wants to keep holding. Strategy said selling Bitcoin would be their last resort and only a small fraction of highly appreciated Bitcoin would be sold. Maybe you missed the part that the company would "continuously increase its Bitcoin holdings in Bitcoin every quarter forever". It's not strange for companies to sell part of their Bitcoin reserve if it is necessary. And it doesn't make gold better than the Bitcoin reserve. Nations also sell part of their gold reserves in times of emergencies. The US sold a significant part of its gold in the 1970s.

If Satoshi had lost his private keys, he would had aired it out but nevertheless the less. Him too is a human that can make common mistakes whereas, he can as well lost his private keys as much as some other earlier Bitcoin adoptors did. That is also by the way. There had also been speculations that Satoshi intentionally left the 1M Bitcoins in the market just to give and edge of not allowing Bitcoin price to fall a total dump even though when most institutions and whalers had to sell off their Bitcoins. So it is likely that the 1M of his portfolio there is being left over (sacrificed) to curb volatility to retain the potential values of Bitcoin. Perhaps he had created a legacy on digital currency with the consensus of its technologies as could let it go on extinction like the formal similar digital currency that existence and exited for to deficiencies. With the look of things, Satoshi seem to be a rich person or an already wealthy group of people (as news goes by since we don't know if the Satoshi is a one man or groups). Hopefully the ideal of whosoever he is behind the invention could be just to rescue the world from financial slavery from regulatory system. So probably selling his accumulated Bitcoins to take profits as others does may not be of his interest at all. So whoever worrying about the dormancy of his wallet may be wasting it time and yeah he may have even stipulated the wallet to be inaccessible forever. We just need to enjoy what he has got for us. So, mind your business and think of how to secure a great future on buying and accumulating Bitcoins to your portfolios and forget about another man's Wallet who is not even worried about it.

No offense, but you're stupid and you really don't understand anything about bitcoin or what Laszlo Hanyecz did. You should remember that Satoshi created bitcoin to be a peer-to-peer currency, he did not create it to be an investment asset. What Laszlo Hanyecz did was a great, iconic and era-opening action for bitcoin. His purchase of 2 pizzas with 10kBTC was to prove that bitcoin can function as a real currency. We should be grateful for what he contributed and did, because without him, without those who sacrificed at the early stages like him, there would be no bitcoin and us today.

I'm wondering where he got the information that Laszlo Hanyecz was regretting his actions. I have read some interviews with the legend, and he made it clear that he has no regret buying the pizza with that amount of Bitcoin. Without that move, nobody would have known him, and this purchase was symbolic to the Bitcoin space. I agree with you that the young man was in no way stupid. He mined those coins when Bitcoin was under a penny and the total price of what he used for the purchase was about $41, so it was not a big deal. The majority of people who were early miners didn't keep their coins up to date.

Yes, in interviews, Laszlo Hanyecz always says that he doesn't regret what he did. However, the truth is that no one knows whether he regrets it or not, only he knows. But that's a personal decision, and I think we shouldn't worry about it. What I want to say is that many investors today are ungrateful and blameworthy. Because without pioneers like him and the early investors, we wouldn't be who we are today. Many investors today not only fail to appreciate and be grateful for the contributions of pioneers, but also scorn and ridicule them. That is truly reprehensible. To me, they are ungrateful and treacherous people.