Today was a bit day for crypto as many of the top brass I guess you could call them went to the white house for the first ever crypto summit and it was rumored a few days ago that this would most likely be the point in which Trump would finally sign the executive order for the U.S Strategic Bitcoin Reserve and well guess what just happened.
Just let this sink in for a moment. The worlds largest GDP and powerful country in the world now has a bitcoin strategic reserve. From what was once a token created to cut out the middle man and banks has some how found its way pretty much fully adopted back into the system it went out to replace and it makes me wonder a bit has bitcoin lost it's luster or does the higher price throw that all out the window?
Now I'm sure for some it's lost it's luster because of this however for a majority you'll quickly find out that most people don't care as long as they are making money. I'm in that same boat now because trying to go the other way has proven to be costly and nothing good came out of it.
The Great Wealth Transfer
Many people talk about the great wealth transfer for poor people getting more poor and rich people building even more wealth. While that's true and most likely will never change what we are seeing today is another version of wealth transfer and that's the physical wealth transferred into digital wealth. It's a slow process but it's one that continues to move forward.
So why is this happening anyways?
Reserves like this are built up to protect against inflation and better smooth things out and well crypto at least bitcoin and a few others have proven to be a rather decent hedge against inflation.
Another reason is it's speculated that owning these assets over the next 5 years could greatly help bring down the national debt. That also means be prepared for countries to soon (in a few years) to offload digital assets. (I'm sure those massive transactions will hurt a bit)
Countries
The big thing here is that now countries are getting involved in stockpiling these assets. That means ultra mega wealth and in fact one of the first countries El Salvador has been doing this for a while but was recently told by the IMF to stop doing it.
Bitcoin Reserves. Right now there are two things happening in the US government. The first is the bitcoin only reserve asset in which the government will no sit and not sell on it's roughly 200,000 BTC it currently has. Also any future bitcoin will be stock piled that is a result of legal actions from criminal or civil asset forfeiture proceedings.
This could be a shifting of other assets into the bitcoin asset from oil, gold and other sources. Which is pretty wild when you think about it. A once though of scam is not fully adopted by the US government.
Now the other side of this is the digital assets stockpile. This is unique from the bitcoin reserve we just talked about above. This holding is of digital assets owned by the Department of Treasury that's not bitcoin that was forfeited in criminal and civil asset forfeiture proceedings.
Now the important difference is they are allowed to sell these assets but they are not allow to buy into it.
The Real Power
Now the real power of all of this comes down to what we have been telling people all along. If the world goes into some crazy thing and the USD becomes worthless or not able to be used the government would hold solid value in a digital asset that is worldwide.
Think of it as a fall back and it's something a lot of people who are currently into crypto buy into for just that reason.
Posted Using INLEO
Value is rooted in that forever 21 million supply.