As always, there is no shortage of bold predictions and plans during a bull market. No sooner have investors discussed the possible creation of a BTC strategic reserve in the US (and one senator has even introduced a bill), than an even more radical idea is gaining momentum: selling the US gold reserves to buy Bitcoin.
Investors are discussing the possible sale of US gold and the purchase of bitcoin with the proceeds. How realistic is this
As always, during a bull market there is no shortage of bold predictions and plans. No sooner have investors discussed the possible creation of a strategic BTC reserve in the US (and one senator even introduced a bill), than an even more radical idea is gaining momentum - selling the US gold reserves to buy bitcoin
Investors are discussing the possible sale of US gold and the purchase of bitcoin with the proceeds. How realistic is this.
In short, the plan is to sell gold, driving its price down, and buy Bitcoin, pushing its price up. Since countries that are in a tense relationship with the US hold some of their reserves in gold, they will face financial problems, while the Americans will benefit from the rise in the value of BTC. Let's see how realistic this is.
The US has gold reserves worth about $760 billion at current prices. At $100,000 per Bitcoin, the US could theoretically buy 7.6 million BTC. In practice, it will not be possible to buy that much BTC, since the price of BTC will skyrocket once it becomes clear that the US is serious about implementing the plan to buy Bitcoin with the proceeds from selling gold. Even putting the price issue aside, the US will have a hard time finding sellers for that amount of BTC.
Buying a smaller amount of BTC, say 1 million or less, seems more realistic and, most importantly, healthier for the market. The fact is that excessive concentration of BTC in the hands of one owner - the United States - can harm Bitcoin, as it can encourage competing countries to abandon Bitcoin and impose restrictions on their citizens to own BTC.
It is worth noting that the traditional financial system is very conservative, as are its leaders around the world. At the moment, the idea of a mass sale of gold in order to buy Bitcoin does not look very realistic due to several factors.
Firstly, the financial authorities and political bureaucracy of the United States will have to be convinced of the feasibility of such a plan, which may not be easy. Secondly, such a plan cannot be implemented secretly - the prices of gold and Bitcoin will instantly fly in opposite directions as soon as the market understands that the United States has begun to sell gold and buy BTC. Because of this, gold will have to be dumped cheaply, buying Bitcoin at historical highs, which will be significantly higher than current prices. However, discussing such plans can provide additional support for BTC prices.