Terra Founder Buying 235,000 BTC Becomes Ultimate Reserve Asset for UST

• Do Kwon to Buy $10 billion Bitcoin
• $42k per BTC would be approximately 235,000 BTC
• Will Do Kwon follow the never sell your BTC idea?
• Dan Held appreciates Do Kwon Move

Terra Founder plans to buy $10 billion Bitcoin for UST stable coin reserves. Those who believe in BTC feel this is bullish for Terra if they do it.  This move is considered to be a friendly change to success.  Bitcoin newbies who are buying BTC for the first time are shaking; however, once they get use to buying, they know the magic behind the game.

Do Kwon expressed:  UST with $10B in $BTC reserves will open a new monetary era of the Bitcoin standard. P2P electronic cash that is easier to spend and more attractive to hold BTC.

So, will Do Kwon follow the never sell your BTC idea?

Dan Held in response:  I welcome all projects and protocols that want to build on Bitcoin/use Bitcoin! Excited to see what Do Kwon and the Terra community will do.

However, onlookers who tried to check the facts behind this statement without paying proper attention to detail were left wondering that there are only 21 million BTC and on how is it possible for Terra Founder to buy 10 billion. So, this looks just like a misinformation traveling from one person to another.

Typically, it will be It’s 232,558 bitcoins if they bought them all for $43,000 each. Onlookers are wondering if the market will bid up to shake more illiquid BTC into the exchanges to fill the orders. Perhaps, OTC services will permit big entities buy large quantities in such a way to not affect the market significantly.

For those who find math and logic hard are like:  10 billion worth in Bitcoin can be like 238,000 Bitcoin.

On deeper though we are able to arrive at a clarification that “$10B is the amount of dollars. At avg price of $42k per BTC that would be approximately 235,000 BTC purchased.”

Considering all the logic we will be still left with the thought of where are these BTC coming from?

So, a soothing answer sounds like:  10 billon dollars’ worth in Bitcoin and not 10 billion bitcoin. So, the 10 billion is the worth in dollars and not BTC.

Logically, there are 19 million BTC which have been mined, so far, and 2 million that haven’t been mined. If someone makes a purchase of 10B BTC the price will just go up, since there are not enough BTCs to go around. It’s supply and demand.

Also, there are almost 8,000,000,000 people in the game, but only 21,000,000 Bitcoin. So, when supply is constrained, the prices go up.

Community Reaction:  I see some BTC maxis crapping on this move of adding BTC backing for UST.  Being a believer in hyperbitcoinization this is exactly what many have been waiting for. This just is moving forward to see Bitcoin is becoming the ultimate reserve asset.

As stated in the Bitcoin Standard, the Bitcoin could end up being a decentralized reserve asset upon which banking primitives could be built. Thus, Terra money becomes the way to do lending, saving and paying in a decentralized way.

Decentralized reserves = Decentralized money.

UST is turning into vehicle to extract/leverage/borrow monetary value that resides in BTC out and into the form of a scalable stable coin.

BTC is always king but I’ve been using Terra defi and it’s incredible, the fact they intend on loading up on the most pristine asset in BTC as backing has my vote.

If this model is successful then expect other chains to try to do the same thing, further increasing BTC demand.

This looks like the decision admirable by the few wise Bitcoin Maxis.