Bitcoin

The US government may start accumulating Bitcoin, but how and why?

Published

4 months ago

31 July, 2024

The US government may start accumulating Bitcoin, but how and why?

As for me, I wasn’t there, but I kept an eye on the weekend’s proceedings. In my opinion (and that of many others), the main theme of this year’s Bitcoin conference was politics. This is a big departure from 2022, when I considered the theme to be open source technology.

By far the biggest “political” item everyone seems to be talking about is that the U.S. government may soon begin building a strategic reserve of bitcoin. At the conference, Sen. Cynthia Lummis (R-Wyo.) announced that she is working on a bill which would set aside the country’s existing holdings of over 200,000 bitcoins and increase them until the U.S. reaches one million bitcoins. As for those many billions of U.S. dollars in bitcoins, the government “would be required to hold the Bitcoin for 20 years, the only thing it could be used to pay for during that time period is paying down our country’s national debt.”

And based on his speech on Saturday, Trump is on board, too! On stage, he said, “And so as a final part of my plan today, I’m announcing that if I’m elected, it will be the policy of my administration… to hold 100% of all bitcoin that the U.S. government currently holds or acquires in the future… This will serve, in effect, as the core of the strategic national stockpile of bitcoin.”

“Most of the bitcoin currently held by the [government] It was obtained through police action. You know that. They took it from you. We’re going to take that guy’s life. We’re going to take his family, his home, his bitcoin. We’re going to turn it into bitcoin. It was taken from you, because that’s where we’re headed now. That’s where this country is headed – fascist rule. And then I will take steps to turn this vast wealth into a permanent national asset to benefit all Americans.”

These questions will definitely be answered in time (hopefully). But for now, I have three questions and/or thoughts at the top of my mind.

First, I have a question about the bitcoin that the US government holds. Can’t they just take the bitcoin they seized and keep it for themselves? à la civil confiscationcan they? Especially since we know for sure that about 95,000 of these bitcoins belong to people who was stolen in they for criminals. Of course, the US government has custody of 200,000 bitcoins, but it’s actually from the US government (actually, yes, since bitcoin is a bearer asset, it’s kind of It is the US government’s bitcoin, there is a lesson in there is about self-custody)? Senator Lummis is going to go to the legislature and say, “Hey, remember all those stolen bitcoins that we stole when we caught the bad guys? It’s ours now. We’re going to keep it.” I can’t imagine that’s going to be well received. So from the beginning, we have a question of provenance.

Second, if this bill becomes policy, that’s the US government going big on bitcoin, and that’s definitely… weird. To complicate matters a bit, Trump said during his speech: “The federal government has nearly 210,000 bitcoins, or 1% of the total supply that will ever exist. But for too long our government has violated the cardinal rule that every bitcoiner knows by heart: Never sell your bitcoin.”

Of course, a line in a speech is not the same as a codified law, so perhaps the US government will sell off parts of its bitcoin stash. We’ll see. And not to be overly negative, but Lummis’ plan says the US government won’t be able to sell off its bitcoin stash for 20 years. except to pay the national debt. If you thought that the the overhang of the potential sale of returned Mt. Gox coins was bad for the price of bitcoin, then imagine a million government bitcoins (that’s over $65 billion) that could be sold in the blink of an eye to pay off the national deficit. Or slowly over the course of a year. Bloodbath.

Third, and perhaps most importantly: Why? Why does the United States need a bitcoin reserve? When I think “US government reserve,” I think of the Strategic Petroleum Reserve (SPR), which is an emergency stockpile of oil held by the Department of Energy (DOE) and released into the market whenever oil is expensive or scarce for any reason. And the DOE maintains the SPR for a good reason: if all the oil in the world disappeared right this second, the entire world would fall apart. Now think about it, if bitcoin disappeared, would the entire world fall apart?

I mean, yes, I would be out of a job and probably lose a lot of money, but the whole world? And I love Bitcoin, I do, but is it necessary? What’s the point?

To be fair, the U.S. government holds a huge gold reserve, about 20% of all the gold in the world, if we are to believe presidential candidate Robert F. Kennedy Jr., who in his bitcoin conference speech one day before President Trump asked for a reserve of four million bitcoins (four times more than the Lummis account!) to match the huge share of supply in bitcoin as it does with gold. And since bitcoin is should be digital goldwhat is the difference?

The difference is that gold has been money for longer than bitcoin (and even the dollar) and, formerly, the dollar it was backed by gold, so the US government had to have gold. And it still has a lot of gold.

Either way, I hope there is more clarity, because I’m still not convinced on this and I’m looking forward to seeing our unanswered questions answered.

In the meantime, I will quote the closing words of Trump’s speech at the 2024 Bitcoin Conference: “Have fun with your bitcoin, your cryptocurrency, and whatever else you’re playing with.”

We will, President Trump. We will.

Please note: The opinions expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.

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Bitcoin

‘This is huge’ — Billionaire Mark Cuban issues ‘incredible’ Bitcoin and crypto prediction amid price slump

Published

4 months ago

1 August, 2024

BlockChainBulletin Staff

'This is huge' — Billionaire Mark Cuban issues 'incredible' Bitcoin and crypto prediction amid price slump

Bitcoin has surged again this year under former President Donald Trump Cryptocurrency boosts US presidential election in November with ‘revolutionary’ plan.

Subscribe now to Forbes CryptoAsset and Blockchain Consultant and “discover blockchain blockbusters poised to generate 1,000%+ gains” after the bitcoin halving earthquake!

The price of bitcoin has surged to more than its all-time high in recent months, surpassing $70,000 per bitcoin and triggering a wave of mega-optimistic predictions about the price of bitcoinalthough it fell again this week to below $65,000 after the Federal Reserve kept interest rates steady.

Now, as Elon Musk suddenly breaks his silence on bitcoin and cryptocurrenciesBillionaire investor Mark Cuban called a California plan to digitize 42 million car titles using blockchain an “incredible step forward” and “huge” for cryptocurrencies.

Sign up for free CryptoCodex now—A daily five-minute newsletter for traders, investors, and crypto curious people that will keep you up to date and ahead of the bitcoin and crypto bull market

ForbesElon Musk Suddenly Breaks His Silence On Bitcoin After Issuing Shocking Warning Of US Dollar “Doom” That Could Trigger Cryptocurrency Price BoomBy Billy Bambrough

Mark Cuban, famous Shark Tank investor and billionaire owner of the NBA team Dallas Mavericks, has… [+] called a cryptocurrency update “amazing” amid bitcoin’s price slump.

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The California Department of Motor Vehicles (DMV) has digitized 42 million car titles using blockchain, it was reported by Reuters, through technology company Oxhead Alpha on the Avalanche blockchain and designed to detect fraud and facilitate the securities transfer process.

“This is an incredible development for crypto,” Cuban, best known as an investor on TV’s Shark Tank and owner of the Dallas Mavericks NBA team, posted on X, joking that U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler could sue the state as part of his hostility toward cryptocurrencies and blockchain technology.

“The reason this is huge for crypto is because people who hold the tokens will have an app with an Avalanche wallet,” Cuban said. “Tens of millions of Californians having and using a crypto wallet in the next five years, or however long it takes, normalizes the use of wallets and crypto.”

John Wu, president of Avalanche developer Ava Labs, told Reuters that California’s DMV is “creating a wallet that you can download on your phone.”

Sign up for CryptoCodex now—A free daily newsletter for the crypto-curious

ForbesCryptocurrencies Are Suddenly Bracing For A ‘Very Major’ U-Turn In China After Wild Price Swings For Bitcoin, Ethereum, XRPBy Billy Bambrough

Bitcoin’s price has rallied this year, triggering a wave of bullish bitcoin price predictions from… [+] people like billionaire Mark Cuban.

Forbes Digital Assets

Last month, Cuban predicted that if the US dollar falls as the global reserve currency, bitcoin could become “a global ‘safe haven’” and a “global currency.” potentially sending the price of bitcoin to a much higher level.

According to Cuban, bitcoin could become what its most ardent supporters “envision” — a means “of protecting our economies… This is already happening in countries facing hyperinflation.”

The price of bitcoin has skyrocketed over the past year, largely due to the world’s largest asset manager, BlackRock, leading a bitcoin attack on Wall Street.

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Bitcoin

Large Bitcoin (BTC) Holders Added $5.4 Billion Worth of BTC in July, Data Shows

Published

4 months ago

1 August, 2024

BlockChainBulletin Staff

Large Bitcoin (BTC) Holders Added $5.4 Billion Worth of BTC in July, Data Shows

Please note that our Privacy Policy, terms of use, cookiesIt is do not sell my personal information Has been updated.

CoinDesk is a awarded media outlet that covers the cryptocurrency industry. Its journalists follow a strict set of editorial policies. In November 2023, CoinDesk has been acquired by the Bullish group, owner of Optimistica regulated digital asset exchange. The Bullish Group is majority owned by Block.one; both companies have interests CoinDesk has a portfolio of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial board to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

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Bitcoin

Peter Schiff criticizes Michael Saylor’s Bitcoin hype by U.Today

Published

4 months ago

1 August, 2024

BlockChainBulletin Staff

© Reuters. Peter Schiff Slams Michael Saylor's Bitcoin Excitement

U.Today – Renowned economist and cryptocurrency critic Peter Schiff has criticized Michael Saylor’s recent hype about the growing adoption of cryptocurrencies as a strategic treasury asset by corporations.

Michael Saylor, a well-known Bitcoin advocate and president of MicroStrategy, recently shared his enthusiasm on X about the growing adoption of Bitcoin as a strategic treasury asset.

Citing a comment made by Bitcoin investor Bill Miller in a recent interview with CNBC, Saylor tweeted: “We now have more companies coming forward and saying we will put Bitcoin on our balance sheet as a strategic treasury asset.”

However, not everyone shares Saylor’s enthusiasm. Schiff, a vocal Bitcoin critic and gold bull, was quick to respond with his usual skepticism. In a pointed tweet, Schiff argued: “Bitcoin is neither strategic nor appropriate as a treasury asset. Companies should not risk shareholder funds. They should pay dividends and let shareholders risk their own money.”

Bitcoin enthusiasts are not intimidated

However, Schiff’s criticism shouldn’t deter Bitcoin enthusiasts, who often take Schiff’s words with a pinch of salt. To put things in context, Michael Saylor began buying Bitcoin in 2020 as an inflation hedge and alternative to money. Saylor’s company, MicroStrategy, is among the largest public holders of Bitcoin in the world. As of June 20, it held 226,331 BTC, purchased for around $8.33 billion at an average price of $36,798.

Over the weekend, Schiff was surprised when 87% of the more than 11,000 Bitcoin holders who responded to his X survey said they would not sell any of their Bitcoin even if the price dropped more than 99% to $120. They said not only would they not sell, but that they would continue to buy even when prices dropped.

Schiff unexpectedly revealed that “the main selling point for investors to buy Bitcoin is its excellent past performance record.”

At the time of writing, Bitcoin is trading at $66,067, having reached all-time highs of nearly $74,000 in mid-March.

This article was originally published on U.Today

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Bitcoin

Bitcoin Falls as ETF Flows Reverse, Mt. Gox Moves Billions

Published

4 months ago

1 August, 2024

BlockChainBulletin Staff

Bitcoin Falls as ETF Flows Reverse, Mt. Gox Moves Billions

In a week of drastic fluctuations, the price of Bitcoin (BTC) has retreated from its highs and is currently trading at US$66,250, down 0.9% in European trading.

This volatility comes on the heels of a significant surge above $70,000 earlier in the week, fueled by former President Donald Trump’s ambitious cryptocurrency plans announced in a Bitcoin Conference in Nashville.

Trump’s announcement to fire Securities and Exchange Commission Chairman Gary Gensler and establish a strategic Bitcoin reserve if elected president has temporarily sent the cryptocurrency market into a frenzy.

However, the excitement was short-lived as a series of events unfolded which caused investor sentiment to sour.

A significant sell-off of about 8% was triggered when the US Marshals Service moved $2 billion in Bitcoin for new wallets.

This move has reignited fears of a potential large-scale liquidation, compounded by lingering concerns over a possible Bitcoin liquidation from Mt. Gox. Early this morning, Mt. Gox administrator transferred US$2.2 billion value of your BTC assets in a new wallet.

Meanwhile, the US Bitcoin ETF spot market is showing signs of fluctuation, according to data from SoSo Value. On July 30, Bitcoin spot funds experienced their first net outflow in five days, totaling $18.3 million.

The Grayscale Bitcoin Trust (GBTC) saw outflows of $73.6 million, while the BlackRock iShares Bitcoin Trust (IBIT) attracted $74.9 million in inflows. But outflows from other funds left the category in the red at the end of Tuesday’s trading session. The total net asset value of spot Bitcoin ETFs currently stands at a substantial $58.5 billion.

In other crypto news, Ripple (XRP) is up 8.6% in the past 24 hours, hitting over 64 cents – its highest point since March 25, according to CoinGecko. data.

This rally comes amid a scheduled token unlock and growing optimism around a potential deal in the long-running SEC vs. Ripple lawsuit.

The crypto community is closely watching the SEC’s actions, particularly its intention to amend its complaint against Binance regarding “Third-Party Cryptocurrency Securities,” which some interpret as a positive sign for Ripple.

On a market analysis noteSingapore-based cryptocurrency trading desk QCP Capital wrote that while election headlines continue to dominate, several crucial macroeconomic events loom on the horizon.

“Election headlines will continue to be a key focus, but several key macroeconomic events are also on the horizon. Key events starting with the FOMC meeting on Wednesday, megacap tech earnings (Apple, Amazon, Meta) throughout the week, and unemployment data on Friday,” QCP Capital wrote.

Edited by Stacy Elliott.

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