127
White House Says Gold Reserves May Be Used to Purchase Bitcoin (finance.yahoo.com)
submitted 1 week ago by geneva_convenience@lemmy.ml to c/nottheonion@lemmy.ml
27 comments fedilink hide all child comments

A senior White House official has hinted at the possibility of the U.S. utilizing its gold reserves to acquire more Bitcoin (CRYPTO: BTC).

"If we actually realize the gains on the U.S. gold holdings, that would be a budget-neutral way to acquire more bitcoin," Hines said adding that there's been "countless ideas" and the “best ideas" will be enacted by President Donald Trump.

you are viewing a single comment's thread
view the rest of the comments
[-] oxysis@lemm.ee 33 points 1 week ago* (last edited 1 week ago)

I mean gold has actual value in jewelry, decorative, in electronics and probably other things that I can’t remember off of the top of my head. But it is actually valuable by itself so it’s stupid to swap it for something that fluctuates as heavy as bitshit

[-] FauxLiving@lemmy.world 6 points 1 week ago

Gold's industrial value is a tiny percentage of it's market value. Like fiat currency and Bitcoin, the value is that other people think it's valuable.

Gold's price is more stable because it has more money invested in it so larger percentage swings are way less likely. Just like how penny stocks can see trading says where the value swings 40-50%, while Apple only moves 1-2%.

I don't think trading gold for Bitcoin is a good idea, but gold's value is just as artificial as Bitcoin's and the value of both stems from the same source: speculation.

[-] davel@lemmy.ml 6 points 1 week ago

The price of gold in USD was until recently fairly stable because of price manipulation.

The politics of gold: Economist Michael Hudson explains why gold’s price is rising so much

Even though more and more people may be buying gold, the United States and England are making money by essentially engaging in this market manipulation as a source of revenue.

That is one of the factors that was holding down [the price of gold].

Well, central banks also have, in fact, been selling gold short for many decades now. And they’ve been making money by it.

As I said, to buy this option, to buy gold at a fairly low price when you think, “Well, certainly the market is going to go up for gold; the price must be going up for gold, because everybody is buying it. I’m going to buy this option”.

And it just didn’t work. A lot of people, pessimists, tried to do this, and they were overwhelmed by the central banks’ selling.

Most options are not exercised, because central banks keep selling forward again, and again, and again. That is what held down the price of gold for many decades. It kept the price from rising, because future buyers can always buy the other end of a short sale, at a lower price.

The supply and demand wasn’t just in the private market; it wasn’t just among central banks; it was a manipulated market.

this post was submitted on 25 Mar 2025
127 points (100.0% liked)

Not the Onion

2536 readers
42 users here now

For true stories that are so ridiculous, that you could have sworn it was an !theonion worthy story.

founded 2 years ago
MODERATORS
FracturedPelvis@lemmy.ml