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⚡UK Government’s $5 Billion Bitcoin Stash🇬🇧

Croxroad

24 Jul 2024 — 5 min read

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🪝 Bloomberg’s Webb

While the United States embraces Bitcoin, will England follow Germany's footsteps by liquidating its bitcoins? Merryn Somerset Webb, a columnist at Bloomberg, has suggested that the new British Finance Minister should sell the 61,000 bitcoins held by the government, which amounts to about five billion dollars. This suggestion comes in the wake of Germany's decision to sell nearly 50,000 bitcoins, a move that caused a temporary decline in Bitcoin's value, which has since been recovering after being endorsed by Donald Trump. Webb argues that Bitcoin is still not a currency, nor an established asset class, and is unlikely to become part of the Bank of England's reserves. She believes that Rachel Reeves should sell the bitcoins to fund immediate government projects.

Contrary to Webb's view, prominent figures in the financial world, such as Larry Fink, CEO of BlackRock, and the president of El Salvador, see Bitcoin as a valuable asset. Larry Fink has stated that Bitcoin has a rightful place in an investment portfolio, and his Bitcoin ETF (IBIT) is attracting more investments than his NASDAQ-backed ETF (QQQ). Additionally, the president of El Salvador has made Bitcoin an official currency, and Bhutan has invested over 500 million dollars to mine bitcoins. However, cryptocurrencies are notably absent from Prime Minister Keir Starmer's manifesto, leaving uncertainty about how the new British government will handle its Bitcoin holdings.

The current situation is reminiscent of 1999 when Chancellor of the Exchequer Gordon Brown sold 400 tons of gold at $275 an ounce, a price that has since soared to $2,400 an ounce. Countries like China and Russia have been stockpiling gold without limits, and there are rumours that the BRICS nations plan to revive the Gold Standard. Bitcoin increasingly appears as a solution amid geopolitical tensions, serving as both an absolute store of value and a stateless payment system with the features sought by the BRICS. It would be imprudent for the UK to dispose of its bitcoins when a restructuring of the international monetary system seems imminent. Donald Trump, who is reportedly considering announcing a "strategic bitcoin reserve" at the upcoming Bitcoin conference, understands the significance of Bitcoin in this context. The United States already holds the largest governmental Bitcoin reserve, and Trump's move would commit not to sell the 210,000 bitcoins the government possesses. As nations like China, England, Ukraine, El Salvador, and Bhutan also hold significant Bitcoin reserves, the collective governmental ownership of Bitcoin highlights its growing importance on the global stage.

⛽ Ether ETF Debut Fuels Bitcoin Rally

Bitcoin bulls fought to protect $66,000 on July 23 as the United States spot Ether exchange-traded funds (ETFs) wowed analysts. Data from Cointelegraph Markets Pro and TradingView showed Bitcoin price strength rebounding after initial weakness on the Wall Street open. The launch of trading for the spot Ether ETFs appeared to catch market participants by surprise as impressive volumes, which totaled over $100 million in just 15 minutes, sent ETH/USD up 2.3%, retracing an initial rout. Popular trader Skew noted heightened open interest on ETH derivatives markets around the launch, highlighting the intense trading activity.

Michaël van de Poppe, founder and CEO of trading firm MNTrading, pointed out that the ETH ETF's first 15 minutes achieved 50% of Bitcoin’s first-day volume, totaling $112 million. He anticipated that the Ethereum ETF launch, which he considered heavily undervalued, could reach an all-time high in the coming one to two months. Fellow trader Daan Crypto Trades described the initial flows as “decent” and predicted heightened crypto market volatility. The run-up to the ETF release was characterised by flat ETH price action, contrasting with Bitcoin’s behaviour prior to its ETF trading launch in January.

Meanwhile, Bitcoin managed to retrace an initial downmove, retaking $67,000. Monitoring resource CoinGlass showed a new patch of buyer liquidity emerging at $65,750, with increased sell-side pressure overhead. Popular trader Jelle highlighted the strong foundations being built for future market stability. Trading firm QCP Capital noted that the crypto market remained cautious following the latest ETF launch, with investors waiting to see if it would follow the "buy the hype, sell the news' ' pattern. QCP also warned that potential selling pressures from the US government and Mt. Gox payouts, combined with geopolitical uncertainty, could keep prices subdued until momentum builds leading up to the elections.

⛱️ Using Your Bitcoin

When you decide it's time to use your Bitcoin, the best way is to transfer only the amount you want to use from cold storage to your hot wallet. Once you're done, move any remaining Bitcoin back into cold storage.

Your hot wallet's public address can be seen by anyone, as can the amount stored in it. You can see an example of this using a blockchain explorer for the crypto you use. Large amounts draw the attention of thieves because it is easier and faster for them to steal from one large piggy bank than several small ones. If you have a decent amount of Bitcoin and store your keys in your connected wallet, you become a target.

So, you might be a target if you have Bitcoin, but if you don't have anything in your wallet, it can't be stolen.

🤣 Crox Road Memes

“Bitcoin survival can be summed up in three words – never give up. That’s the heart of it really. Just keep hodling.”

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