Potential outcomes if the US establishes a strategic Bitcoin reserve

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#1Dec 28, 2019, 05:30 AM
What impact would it have on Bitcoin's price? Can we still expect accumulation to happen?
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silentchainHero Member
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#2Dec 28, 2019, 11:23 AM
The idea of the United States haven to come with the ideal of strategic reserve of some of it economy finance on bitcoin is assumed as diversifying the States financial revenues and also store of value against economy inflation. It does not have any hindering effects on Investors accumulating strategies rather it would contribute to an increase of bitcoin market where holders would withness increase in the value of their holdings and the execution of buying Such huge amount as proposed will as well bring motivation to others to invest which means it will potentially result to community users expansion based on the influence of the United States in the globe couple with the resultant of the pump it would bring to the market. As for negative consequences if expected, I will just say I don't find any.
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HumbleBullFull Member
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#3Dec 30, 2019, 09:06 AM
If any country decide to create an strategy on bitcoin markets that will affect the price only if the amount involved is huge, since are talking about a 2 trillions market the fact that a country decide to spend 1 or 10 million will not affect the price, but if they decide to invest 1 trillions then we will see the market moving up.
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#4Jan 1, 2020, 09:21 AM
i think a strategic bitcoin investment by the us would actually boost trust in bitcoin as a store of value, making it even more attractive to investors and further increasing demand, which in turn would drive the price up. the big question is, would the us impose any regulations or controls on their bitcoin holdings, and if so, how would that impact the market?
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bear_maxiSenior Member
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#5Jan 1, 2020, 11:51 AM
What do you mean by the word strategic bitcoin, is it from their seized bitcoin they hold or investing more ahead and on top the previous ones, I don't see this having a major market influence because we have a lot of whales also who are into buying and dumping if the market and there is nothing happening than the little shock it creates and this is just on a temporary implication, causing the market to go more volatile to rise or fall and still maintain the usual pattern it follows, this means there could be any reason of manipulation but none is a permanent one, same applies to the US if the do som on bitcoin regardless of any strategy used.
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mike100Senior Member
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#6Jan 1, 2020, 03:27 PM
How would they impose regulations when they made it a strategic reserve? Doesn't make sense for the US, and this is Bitcoin that we are talking, it's decentralized and no one can control it unlike Ethereum. So definitely the price is going to go up and it could be around what we all wanting to see, $180,000 or even higher. And I still think that even average joe can accumulate and continue to save Bitcoin. We all know how DCA works, so still going to be the best method to do even if the US will buy billions or trillions worth of BTC.
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matrix420Senior Member
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#7Jan 2, 2020, 10:50 AM
lets say(based on BIS regulations) bitcoin reserve of central banks can only buy 2% of their fiat reserve value lets say(based on BIS regulations) bitcoin reserve of central banks can only hoard that coin until it encroaches 5% of their fiat reserve value whereby they have to sell reserves of [urlhttps://www.federalreserve.gov/data/intlsumm/current.htm] $238b[/url] total assets, so 2% is $4.76b, 5% is $11.9b now lets say they invest $4.76b this month to buy 47,600btc at $100k/btc the bitcoin price would need to get to $250k/btc before they need to sell ($250k x 47.6k btc= $11.9b(5% of reserve)) so lets play with a 47.6k btc hoard, and the price encroaching $250k+ if the price goes to $260k/btc ($12.376b) they need to sell ~$500m to get back to below ~$11.9b reserve value..which at $260k/btc means 1.93k btc of 47.6k hoard this 1.9k btc sell off could stall any further rises above market price of $260k for a bit but remember it would only stall a market price at this range if: the "bitcoin strategic reserves" had 47.6k hoarded btc for $250k market price to be a trigger the sales were done on public exchanges to directly affect market price, however if done as private OTC then not directly affect market price then of the new 45,700btc if the market gets to $270k they need to sell ~$500m to get back to below ~$11.9b reserve value..which at $270k/btc means 1.85k btc of 45.7k hoard then of the new 43,850btc if the market gets to $280k they need to sell ~$400m to get back to below ~$11.9b reserve value..which at $280k/btc means 1.45k btc of 43.85k hoard then of the new 42,400btc if the market gets to $290k they need to sell ~$400m to get back to below ~$11.9b reserve value..which at $290k/btc means 1.38k btc of 42.4k hoard and so on so now you know.. they would only be trading under 2k btc volume per $10k market price step up($250k->$260k)($260k->$270k).. .. but remember, this is only going to possibly affect the market price if: that volume is on the public exchanges will it affect the public exchange rate, rather than private OTC deals that volume is done as a lump in one day if the price jumped by $10k in a day.. the market might however slowly rise by $10k over a few days meaning less than 200 coin needs to be sold daily if it took say 10 days for market to rise by $10k,
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matrix420Senior Member
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#8Jan 4, 2020, 09:38 AM
they cant impose regs on peoples cold wallets doing transactions on the blockchain.. ..however.. they can impose regulations on public exchanges making it even harder to use exchanges for individuals. (more draconian sign up requirements, deposit/withdrawal limits, more proof of income/ID/tax-social security numbers) (only allow CEX to serve institutional size or big business size, not small holders/low paid people) as a way to tempt individuals the only way to get price exposure is via a ETF share purchase
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