There's been a lot of talk as of late in terms of the USA adding bitcoin to its strategic reserves. In fact there's a current bill being passed to buy 1 million bitcoin over the course of the next 5 years. Remember there is only 21 million total bitcoin and a lot of places already hoard a large amount of it.

A country is only so powerful by the wealth it holds and it's why some are throwing into question the USA as of late with record breaking debt accumulation, higher taxes and appealing to a small group of very vocal honestly weirdos who would rather their government be in more control over their lives than themselves it blows my mind lol.

Current US Reserves

This information is public and can be found here U.S Department of the treasury

This snapshot is for November 1st of 2024 and is always changing but it gives us a good idea as to where we stand on what assets. The big one we want to look at here is gold which is 11,041 but that's in millions so pushing that up means 11 billion dollars worth of gold is the reserves which is just under 5% of the total reserves the country owns.

A vast portion of the reserves are in SDR which was created by the IMF and is primarily made up of 5 assets which are other countries reserves. This is audited every 5 years and was last done in 2022. This audit showed 43% of the makeup of this IMF asset was USD, 29% EURO, 12% Yuan, 8% YEN and 7% British Pound.

There are also known as credit notes or IOUs from country to country I mean the entire credit system is jacked up honestly there are no hard assets backing it up.

Where Bitcoin Fits

Normally gold and silver and other hard assets such as this where used as points for building wealthy that was a hedge vs inflation. However gold is expensive to mine out of the ground and also to store. Bitcoin however is rather cheap to still mine and it's storing is rather easy or at least easier to store.

This new asset class that is growing in demand could very well be a solid option for a hedge against inflation and that's something the new president is betting on. So far it's worked VERY well for micro strategies as a business and like I always say the government is a business.

The Underpinning

So most people think that the USA government under trump is going to be buying bitcoin and building it's coffers. But if you look at the finer details it mainly says at the moment that the USA government which currently holds a decent amount of BTC and will most likely gather more from seizing it will now not sell the BTC and instead start playing the hodl gang game.

Now if they would have just done this over the last 10 years the whole debt thing would be at least a little less of an issue was it could have contributed close to a half a trillion dollars and holding assets for the country.

At the moment the USA government holds around 200,000 BTC and buying more which is what some in congress are pushing for (Again not Trump) means in 5 years the USA government would hold if it passed 1.2 million BTC at least.

Any way you look at it with those types of holdings the USA government would hold somewhere between 5% - 8% of all of the BTC that can be accessed as of course some has been burned, lost or are in satoshis wallet which HBO clearly didn't help in making it clear at all who this person or persons actully is lol.

Posted Using InLeo Alpha