Gold reserves insufficient to resolve U.S. debt issues.
U.S. gold reserves reflect a gain of about $629.1 billion.
Senator Cynthia Lummis has officially introduced the Bitcoin Strategic Reserve Bill.
Bloomberg research analyst James Seyffart suggests that the current value of the U.S. gold reserve would not significantly impact the nation’s debt situation. However, he believes it could fund the purchase of Bitcoin, assuming Congress passes the Senator Lummis Bitcoin Reserve Bill.
Interesting tidbit in @SenLummis's #Bitcoin Reserve Bill. Currently the US government's gold reserves are held/valued at $42.22 per ounce "42 & two-ninths", as set by a 1973 law. I think this would force the gov to recognize the current gold market value of $2,447 per ounce https://t.co/01jhJlDvBR pic.twitter.com/9TJRlu9osn
— James Seyffart (@JSeyff) July 31, 2024
Seyffart highlighted an aspect of the bill where the senator referenced the U.S. government’s gold reserve value. The details show that the U.S. currently values its gold at $42.22 per ounce, as set by a 1973 law. However, the current market price of gold is $2,447 per ounce, presenting a significant difference.
In further analysis, Seyffart pointed out that the U.S. owns about 261.5 million troy ounces of gold, valued at over $11 billion using the outdated $42.22 valuation. However, using the current market price, the gold reserve’s actual worth is approximately $640.2 billion, reflecting a gain of roughly $629.1 billion. Despite this substantial difference, Seyffart believes it wouldn’t be enough to fully resolve the nation’s debt issues.
On July 31, Senator Cynthia Lummis officially introduced the Bitcoin Strategic Reserve Bill. If passed, this bill would direct the U.S. government to establish a reserve fund for Bitcoin, the scarce flagship cryptocurrency.
The bill proposes that the U.S. government establish a “decentralized network of secure Bitcoin vaults” under the United States Treasury’s control. It also recommends that U.S. lawmakers and bureaucrats enact strict cybersecurity parameters alongside other physical security measures to ensure the safety of acquired Bitcoins.
In her statement, Senator Lummis described the bill as a step towards creating a brighter future for future generations. According to Lummis, acquiring Bitcoin as a reserve asset could help resolve the soaring inflation rates that have caused many families, especially those in Wyoming, to struggle financially.
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