Breaking news! Trump reveals that the United States has privately stored Bitcoins, and announces permanent lock-up, which has set off a spree in the cryptocurrency circle!
1. What happened? Trump recently admitted that the US government has indeed accumulated a lot of Bitcoins. The most explosive thing is that he announced that these Bitcoins will not be sold in the future, and will be stored as a strategic reserve of the country.
2. What does this mean? This operation is so unusual! In the past, the government basically auctioned off the confiscated virtual currencies in exchange for US dollars. Now that this has happened, it feels that the official attitude has changed drastically, upgrading Bitcoin from "stolen goods" to "strategic materials" similar to gold and foreign exchange reserves. I think this signal is super strong!
3. What is the reaction in the circle? The cryptocurrency circle is in an uproar! Many experts and cryptocurrency traders speculated: Is the United States also afraid of the instability of the US dollar or economic problems? Is it starting to secretly use Bitcoin as insurance? To be honest, this idea is quite bold, but it makes sense when you think about it carefully.
4. What is the impact on the price? This is definitely a major benefit for people who hold Bitcoin for a long time! Why? There are only so many Bitcoins in total, and the more they are mined, the less Bitcoins there are. Now that the big guy in the United States has joined the "hoarding party" and is holding on to them and not selling them, the Bitcoins that can be circulated on the market are even more scarce! I think that the supply and demand relationship is there, and the price pressure is obviously upward in the long run!
5. Why choose to announce it at this time? The election is coming soon! Trump is clearly trying to win over those who play with coins and institutions that support virtual currencies. This move is quite clever and directly hits the key point of the currency circle.
6. Bigger question mark: Does this operation indicate that the United States is going to go the way of "national holding of Bitcoin reserves"? Even set up a system like "Bitcoin peg"? This step is a bit too big, but it is not completely impossible now.
7. What is the market worried about? Many market veterans are warning: If the US government stops selling, it will reduce a major source of supply in the market.
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