Should the US Federal Reserve Buy Bitcoin?
Why the us needs. Bitcoin elon musk and other. Vip's have endorsed it. Here's why the federal reserve should seriously consider btc for its balance sheet. The united states will adopt bitcoin as a reserve asset. Why because it is unequivocally in strategic interest to do so. The question is not if this will happen but when whether it happens within twelve months to years five years or ten years will have major implications for us positioning for decades failure to embrace bitcoin sooner rather than later will damage strategic interests and benefit rivals. Adopting at first by examining how the us and other countries manage their reserve assets. Today we can already see the logic for this transition to occur golden empire today the us hold two hundred sixty one. Million troy ounces. Eight thousand one hundred and thirty-three metric tons of gold or about four hundred and seventy five billion worth this makes the us the largest holder of gold in the world by a wide margin with over two times the amount of the next largest holder germany. Historically there was a very good reason for the us to own gold the us dollar was pegged to its value yet. The us broke with the gold standard in nineteen seventy-one ushering in the fiat currency age that has existed ever since. So why exactly the. Us and other countries continue to own all this gold here. Some of the reasons provided directly from central bankers themselves. Gold is the defacto safe haven asset. It is an insurance policy against any major economic. Monetary or geopolitical shifts given gold's ample liquidity and universal appeal countries can easily liquidate it for other assets in turbulent times. Gold is both independent of any given country's economic or monetary policies while also having a fixed supply on earth with relatively stable supply growth making it an ideal hedge against both monetary inflation and fluctuations in other reserve assets. Gold is viewed as nobody's liability. It cannot be frozen in a bank account or defaulted on when frictions between countries arise combined these reasons with the cultural importance of gold and it's uncontroversial to say that having more golden everyone else is a very good thing. Fort knox two point. Oh bitcoin similarities. To gold are well-documented. Earning it the appropriate nickname of digital gold yet. Bitcoin shares many similarities with cluding scarcity. Stable supply inflation fungibility durability. It also makes major improvements over golden some key areas when gold is in high demand. Minors are incentivized to dig up more of it increasing its supply. Bitcoin supply does not change in the face of demand making it less inflationary and more predictable far easier and cheaper to verify the authenticity of bitcoin. Gold bitcoin is much easier to transfer than gold and cost much. Less to store securely. Bitcoin is easily divided whereas gold is not for these reasons a rapidly increasing number of people companies and institutional investors agree that having more bitcoin than everyone else is a very good thing today. This includes the world's richest man highly conservative long-term thinking asset managers industry-leading companies and the most prominent macro investors in the