about to start investing
in Bitcoin as a strategic reserve asset
and if so is it going to be Russia who
does it first will Russia kill the bear
market is this the unexpected event that
so many people were hoping and waiting
for to see state-level
actors acquiring Bitcoin as a strategic
asset well if it does happen this would
put fidelity and backed and all that
stuff well that's still cool but this is
whoa really big very interesting times
indeed now according to Vlad Aslam
ginkgo now he is a lecturer at Moscow's
Russian and presidential academy of
national economy and public
administration such a big name he is
anticipating that new rounds of US
sanctions will indeed push Russia to
investing in Bitcoin he says that he has
been appearing recently on Russian state
TV and radio providing economic
commentary and saying that much of his
recent work has been in persuading
Russian officials that bitcoin is the
best way to mitigate the impact of new
sanctions on Russia if this is the case
if this does happen it could be huge now
look this is just a dude say and what he
thinks might happen when the president
comes out and says something about it or
when the Russian finance ministry comes
out and says that yes this is indeed
what is happening then I'll believe it
100% right now it is someone saying that
they're working behind the scenes trying
to make this happen now they're
speculating that it might happen soon
but I think the idea of a state level
actor you're getting into crypto
currencies is inevitable and when it
does happen it's not only gonna push the
bowl market to new extremes now to give
you a bit of perspective why I think
that if a country is really going to
start adopting Bitcoin as a percentage
of their strategic foreign reserves that
Russia may just be a prime candidate for
that to happen
recently Russia has been drastically
increasing the amount of
golde that they've been buying now gold
currently at forty 1.2 million dollars a
ton in the last months of 2018 Russia
bought 3.8 billion dollars worth of gold
ore around 92 tons of gold bringing the
total gold stockpile in Russia to 2000
66 tons or approximately 85 billion
dollars worth of gold Russia has been
progressively moving away from the
dollar and the dollar has been moving
away from Russia as well the United
States has been very antagonistic
towards Russia so it's no surprise that
they wouldn't want to be using the
currency of a country which is so
continually hostile towards them
russia's US treasury Holdings have
dropped from 96 point 1 billion dollars
back in March of 2018 to fourteen point
four billion in September we don't have
a current number on that but I can
imagine that it is continuing to fall
until they completely relieve themselves
of u.s. foreign currency holdings which
is very interesting the kremlin of
course fears that US sanctions may end
up freezing a significant portion of the
country's international reserves and
that would be a terrible situation for
russia and as we see sanctions and
economic levers continue to be pulled
against russia they have a right to
paranoid is probably not a bad idea to
be exploring alternative options
currently the russian central bank has
around 460 billion dollars worth of gold
and foreign currency assets that's just
gold and foreign currency it's not
counting the rubles and all these
different alternative assets just gold
and foreign currencies so to see them
diversifying into Bitcoin could be very
interesting I know some people out there
go yeah but it's all gonna happen on the
OTC market so it's not really gonna
matter LARC well yeah Russia is gonna
buy a certain percentage of that on the
OTC market but you just have to step
back for a second and do the math here
let's imagine that Russia was gonna say
we're gonna take 1 percent just 1
percent
4.6 billion dollars and invested in
crypto currencies even if they didn't
point five percent
that's still a massive amount of money
so the OTC statement actually kind of
ignores the realities of the markets and
kind of ignores math because that 1%
would equal at four point six billion
dollars assuming bitcoins around four
thousand dollars 1 million one hundred
seventy five thousand Bitcoin
I think the OTC markets would have a
tough time filling those orders in a
quick fashion
so yes that means the OTC desks are
going to have to go to exchanges and buy
more Bitcoin yes there are some big
sellers out there yes there are longtime
holders who have 20 30 40 50 60 a
hundred thousand bitcoins sitting in
their accounts those people exist but
are we gonna get all of them to sell
1.17 five million Bitcoin to rush if
they decide to invest one percent of
their overall foreign currency holdings
in to Bitcoin I think they would
struggle to fill those orders the OTC
desks so they're gonna have to go to
regular exchanges and start accumulating
it buying it off of you know Joe and
Jane and Bob and Sally that will have an
effect on the market I think in a way
that a lot of OTC market volume doesn't
really have that effect because adds
10,000 Bitcoin changing hands so that's
a lot of Bitcoin but if you're a state
level actor and you're looking to buy a
million Bitcoin 121 121st whatever of
the total supply that is pretty serious
money when it comes down to it and the
OTC desks are probably not going to be
able to fulfill that even if even if
they go with point 5 percent that's
still two point three billion dollars
invested into crypto probably a lot of
that going into Bitcoin let's imagine
that they only did point one percent
that's still half a billion dollars
rather significant amount of money again
going into Bitcoin
1% is actually not even so crazy when
you look at the amount of money that a
state-level
actor has to be able to invest in
cryptocurrencies unless just assume for
a moment that Russia's gonna be able to
fulfill all of his orders via some
magical OTC desk somewhere or some
magical OTC desks which all have enough
Bitcoin to satiate that demand well
that's probably gonna be most of the
available OTC Bitcoin on the markets so
what are the Chinese oligarchs gonna do
what a Japanese old Ark's gonna do what
are rich people gonna do all around the
world when they want to go buy 10,000
Bitcoin well the OTC desks are again
gonna have to go to exchanges by Bitcoin
and put their stockpiles together
it's simply what's going to have to
happen when you consider as well that 4
million Bitcoin are possibly lost
forever soon as Satoshi may never come
back may never cash in his 1 million
Bitcoin and that of course a lot of
others just lost due to early days of
losing private keys and all that stuff
again Russia controlling 1 million
Bitcoin would be massive beyond belief
in the use case for crypto currencies to
be able to sidestep sanctions and things
like this are an absolute screaming use
case of crypto currencies look at what's
happening with Iran look at what's
happening with Venezuela China could
also be very interested in these things
whether you agree with the politics or
not the reality is is that these
countries are being cut out of the
international financial system and they
need an alternative now look I
understand that some of you may think
that Russia deserves to have sanctions
put on it it messed up in Crimea
therefore sanctions should we put on
Russia over Crimea or perhaps you're
worried about Russian meddling in US
elections they bought some Facebook ads
bought some Google Ads bases well if
you're really concerned about that I
want to make sure that you are being
consistent in your outrage and not just
being tricked casually by the media
who's screaming about these things all
of the time because if you're calling
for sanctions on Russia you should
probably be calling for sanctions on
your own country
have a look in the mirror think about
all the wars that
have happened at the behest of the
Western powers all the war crimes that
have been committed think about all of
the war criminals who are invited on
talk shows in those countries and are
treated like they're really cool people
all of those things didn't just
magically do themselves and all of those
things are not Russia's fault the United
States did not invade Iraq because of
some secret Russian plot that was the
u.s. murdering at least 200,000
civilians so if you were outraged and
think that Russia deserves have
sanctions then you have fallen into a
dangerous trap of us versus them good
versus evil left versus right black
versus white etc etc etc this game of
incredibly hypocritical international
politics is a dangerous game indeed and
many of the most criminal countries the
USA the UK France Israel Saudi Arabia
cetera cetera cetera every country is
doing it it's kind of the cool thing to
do and if you're feeling triggered by
this great you probably need to unplug
from the legacy media a little bit and
start looking at the world in a more
egalitarian kind of fashion but you know
what my opinion your opinion that guy's
opinion that lady's opinion over there
you know who doesn't care about any of
this who doesn't care about Russian
politics who doesn't care about American
politics of British politics or European
politics or any of this stuff its
Bitcoin Bitcoin is agnostic to all of
this Bitcoin doesn't care about politics
Bitcoin doesn't care about sanctions
regimes bitcoin is above all of that
which is really amazing because when you
start to go back on what I said a minute
ago you just get bogged down in
arguments my size right your size right
my size are at your side's right and no
one gets anywhere but when you have a
tool that nullifies international
sanctions regimes for example that is
very very powerful stuff the sad truth
of the current state of world affairs is
that the financial system which is
primarily us-led has
used as a financial weapon against other
countries finance and money has been
weaponized and you don't always see that
talked about in the press but it's
exactly what's happening predatory loans
against poor countries for example
sanctions regimes etc etc etc it's all
one-sided and it's all a bit critical
and again bitcoin doesn't care and that
isn't a very important thing to keep in
mind now currently of course we see a
situation where the u.s. is forcing
Europe to do things that Europe doesn't
necessarily want to be doing and so in
response to France and Germany and
others in Europe not wanting to always
have to be the dog following America's
lead they are proposing some of their
own solutions to free themselves from
again a one country dominated financial
system so France and Germany have
announced that they're looking at a new
international trading system beyond us
control Germany would likely include
Russia in this because they are such
major partners that hasn't been
officially been part of the announcement
that's just a bit of speculation on my
part retic has certainly seen that
happening French finance minister Bruno
the mayor
remember mr. Bitcoin as they call him in
France has agreed to the overall idea
with Germany he said that we are
determined to work on an independent
European or franco-german financed tool
which would allow us to avoid being the
collateral victims of us
extraterritorial sanctions those are
some of the United States's closest
allies saying we're tired of your BS
we're tired of you telling us who we can
and cannot be friends with who we can
and cannot do business with those
countries the closest allies of the u.s.
are looking for alternatives it's
interesting of course they don't need a
new Swift Network they could just use
Bitcoin now that would be total
next-level
if some of the world's biggest economies
all started using Bitcoin to interact
with one another in terms of
international transactions forget Swift
forget ripple forget all that stuff
Bitcoin guys just use Bitcoin keep it
simple now the reality of Russia
investing or not investing in
cryptocurrencies I can definitely see
the use case the political situation is
very tense and causes a lot of strong
emotions on either side of the aisle
when you look at the utility the
investment potential that's sometimes a
whole nother idea but will Russia only
invest in Bitcoin probably not I would
imagine that a portfolio put together by
the Russian finance ministry would
probably have a lot of Bitcoin in it but
I would not be surprised to see them
buying up some aetherium buying up some
other major cryptocurrencies litecoin
maybe some neo for example so that would
be very interesting to see a basket of
cryptocurrencies being gathered up by a
state level actor and if you want to
talk about fear of missing out just wait
for Russia to announce that it's going
to buy 1 million Bitcoin you think
Japan's just gonna sit back and watch
Russia gobble up all the Bitcoin you
think China even though China doesn't
want their citizens to invest in Bitcoin
you think China's not gonna secretly go
out and buy a few hundred thousand or a
few million Bitcoin this kind of country
level FOMO could be unimaginably big
when it comes down to it we could see
countries literally adding hundreds of
thousands of Bitcoin to their strategic
reserves and for these countries it's
not a huge amount of money to throw
around let's say that Russia Gamble's
4.6 billion dollars 1 percent again of
their total foreign currency and gold
holdings on Bitcoin if they lose it all
well 4.6 billion dollars is not a tiny
amount of money by any means but it's a
big government they can absorb that kind
of a loss but let's just think about the
if right now bitcoins at a relative low
let's imagine Russia buys a million
Bitcoin what's gonna happen in five or
ten years Bitcoin becomes very scarce
very quickly as state actors begin
gobbling up big chunks of Bitcoin Japan
gets half a million South Korea gets
half million Russia
million China grabs another million all
of a sudden where's all the Bitcoin gone
demand very high scarcity very high
what's gonna happen to the price if
Russia is the first one to do this and
if they were really were to really spend
1% that's just the number I made up they
may spend nothing this guy could be
blowin smoke out of his butt here but if
it's true and if Russia is actually
gonna start investing even a tiny
percent of money into Bitcoin this could
be a very interesting financial
opportunity for Russia
imagine Russia is already a country that
has lots of savings they're not a
country that's in terrible debt like a
lot of other countries are let's imagine
if they invest in Bitcoin at $4,000
today hold on to it for 10 years it
could make Russia one of the richest
countries in the world that is an
interesting concept for state level
actors to consider anyway those are just
my two satoshis on the current
speculation around Russia investing or
not investing in Bitcoin I would love to
know your thoughts on the story do you
think Russia is actually gonna start
putting money into Bitcoin or do you
think another state actor is going to
beat them to it or do you think that
perhaps these countries are already
buying Bitcoin just on the sly and they
haven't really told anybody let me know
about down below in the comment section
thank you so much for watching this
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