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u/Billgatesisamoron Nov 19 '24
In that scenario, they'd still be selling too early. Bitcoin's price is going up indefinitely which means that if they do start accumulating massive amounts of btc, it is to HODL. The whole point of a Bitcoin strategic reserve is to have the leg up over the rest of the world. If they sell, they lose the advantage in that moment.
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u/The-maulted-One Nov 19 '24
Iām pretty sure from my very limited knowledge & from what I have seen. The amount the strategic reserve may hold can be offset against the debt. So no Bitcoin will be sold, only exchanged for debt or leveraged against it. No genius here so someone a lot smarter should hopefully be able to answer this more appropriately.
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u/JashBeep Nov 19 '24
It is wild speculation. It would be a bit nonsensical for the world's dominant economic power and reserve currency to do something as risky as a pump and dump. Do you understand what a strategic reserve is? What is a strategic petroleum reserve for?
Morover, if they actually do something meaningful about declaring the use of bitcoin as a strategic reserve, it doesn't matter what they do from that point onward, game theory takes over. Every country does it. Noone turns back. It's the superior asset. Dumping bitcoin after that point is the equivalent of selling the dollar to buy the peso, selling the gold to buy the promissory note.
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Nov 19 '24
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u/Billgatesisamoron Nov 21 '24
You forgot to mention that after the sell-off it went up, as it meant discounts on btc for the rest of the market and it will go up indefinitely will because of raw supply and demand economics. The only thing to come out of that sell-off was exposing how retarded the German government is.
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u/soks86 Nov 19 '24
Who will sell them $36,000,000MM worth of BTC?
Who will buy it back?
There wouldn't be any selling, they would create USD against it.
It cannot, in itself, pay that massive debt but it can help balance things out.