What happens to banks if the US sells gold and buys Bitcoin? Most banks hold gold reserves. How will this impact them, as the price of gold will likely collapse?

It's odd when someone who hasn't visited a place, lived there, or spoken to locals believes they know much about it and judges it as good or bad.

Satoshi Nakamoto Quotes “The Times 03/Jan/2009 Chancellor on Brink of Second Bailout for Banks.” - Hidden in Genesis Block, referencing 2008 bank bailout, suggesting alternative monetary system. “I've been working on a new electronic cash system that's fully peer-to-peer, with no trusted third party.” - From email to Cryptography Mailing List, describing Bitcoin's trustless nature. “Most of the value comes from the value that others place in it. Gold, for instance, is pretty, non-corrosive and easily malleable, but most of its value is clearly not from that. Brass is shiny and similar in color. The vast majority of gold sits unused in vaults, owned by governments that could care less about its prettiness.” - Compares Bitcoin to gold, emphasizing scarcity, with gold having lower inflation pre-April 2024 halving. “If you don't believe it or don't get it, I don't have the time to try to convince you, sorry.” - Reflects energy/time limit in discussions, common in Bitcoin debates. “Lost coins only make everyone else's coins worth slightly more. Think of it as a donation to everyone.” - Addresses Bitcoin's limited supply, loss increases value for others, visible in open source issuance. “When someone tries to buy all the world's supply of a scarce asset, the more they buy the higher the price goes.” - Counters critics on states/rich buying all Bitcoin, notes price escalation. “It might make sense just to get some in case it catches on.” - Suggests holding Bitcoin if it gains traction, advocating “GET OFF ZERO!” from email. “Bitcoins have no dividend or potential future dividend, therefore not like a stock. More like a collectible or commodity.” - Describes Bitcoin as commodity/collectible, not guaranteeing returns like stocks. “I'm sure that in 20 years there will either be very large transaction volume or no volume.” - Predicted high or no transaction volume by 2029, mempool never empty 16 years later. “Writing a description for this thing for general audiences is bloody hard. There's nothing to relate it to.” - Notes difficulty describing Bitcoin to non-specialists, references white paper. "If you don’t believe me or don’t get it, I don’t have time to try to convince you, sorry." - Response on Bitcointalk about scalability, last post Dec 2010. "The root problem with conventional currency is all the trust that’s required to make it work..." - Advocates Bitcoin's trustless system, from P2P Foundation. "In this sense, it’s more typical of a precious metal. Instead of the supply changing to keep the value the same, the supply is predetermined and the value changes..." - Explains Bitcoin's value with fixed 21M supply, halving every 4 years. "A lot of people automatically dismiss e-currency as a lost cause because of all the companies that failed since the 1990’s..." - Highlights Bitcoin's decentralized vs. failed central digital currencies. "The fact that new coins are produced means the money supply increases by a planned amount, but this does not necessarily result in inflation. If the supply of money increases at the same rate that the number of people using it increases, prices remain stable. If it does not increase as fast as demand, there will be deflation and early holders of money will see its value increase. Coins have to get initially distributed somehow, and a constant rate seems like the best formula." - Discusses Bitcoin distribution, early holders benefit from deflation. "It is a globally distributed database, with additions to the database by consent of the majority, based on a set of rules they follow..." - Describes Bitcoin as trustless, proof-of-work generates blocks, 6 blocks/hour target. "It’s the same situation as gold and gold mining. The marginal cost of gold mining tends to stay near the price of gold..." - Compares mining cost to gold, utility exceeds electricity cost. “The developers expect that this will result in a stable-with-respect-to-energy currency outside the reach of any government.” — I am definitely not making an such taunt or assertion..." - Notes writing whitepaper harder than coding, early code 3,000 lines, now over 100,000. "Bitcoin isn’t currently practical for very small micropayments. Not for things like pay per search or per page view without an aggregating mechanism, not things needing to pay less than 0.01." - Initially unsuitable for micropayments, e.g., 0.1 BTC fee early, now 300-1000 satoshis ($0.025-$0.1). "When you generate a new bitcoin address, it only takes disk space on your own computer (like 500 bytes)..." - Confirms unlimited addresses, max 2^160, compared to 2^63 grains of sand on Earth. "Bitcoin would be convenient for people who don’t have a credit card or don’t want to use the cards they have, either don’t want the spouse to see it on the bill or don’t trust giving their number to “porn guys”..." - Notes pseudo-anonymity for transactions like porn, early dark web use. "Yes (you will not find a solution to political problems in cryptography.), but we can win a major battle in the arms race and gain a new territory of freedom for several years..." - Believes Bitcoin resists government control, compares to P2P networks like Gnutella, Tor. "The possibility to be anonymous or pseudonymous relies on you not revealing any identifying information about yourself in connection with the bitcoin addresses you use..." - Explains Bitcoin's pseudo-anonymity, transactions public but identities hidden if addresses unlinked. "We have proposed a system for electronic transactions without relying on trust. We started with the usual framework of coins made from digital signatures, which provides strong control of ownership, but is incomplete without a way to prevent double-spending. To solve this, we proposed a peer-to-peer network using proof-of-work to record a public history of transactions that quickly becomes computationally impractical for an attacker to change if honest nodes control a majority of CPU power." "It's very attractive to the libertarian viewpoint if we can explain it properly. I'm better with code than with words though." "The price of any commodity tends to gravitate toward the production cost. If the price is below cost, then production slows down. If the price is above cost, profit can be made by generating and selling more. At the same time, the increased production would increase the difficulty, pushing the cost of generating towards the price." "Total circulation will be 21,000,000 coins. It’ll be distributed to network nodes when they make blocks, with the amount cut in half every 4 years. first 4 years: 10,500,000 coins next 4 years: 5,250,000 coins next 4 years: 2,625,000 coins next 4 years: 1,312,500 coins etc... When that runs out, the system can support transaction fees if needed. It’s based on open market competition, and there will probably always be nodes willing to process transactions for free." "The design supports a tremendous variety of possible transaction types that I designed years ago. Escrow transactions, bonded contracts, third party arbitration, multi-party signature, etc. If Bitcoin catches on in a big way, these are things we’ll want to explore in the future, but they all had to be designed at the beginning to make sure they would be possible later." "The network timestamps transactions by hashing them into an ongoing chain of hash-based proof-of-work, forming a record that cannot be changed without redoing the proof-of-work. The longest chain not only serves as proof of the sequence of events witnessed, but proof that it came from the largest pool of CPU power." "As computers get faster and the total computing proof-of-worker applied to creating bitcoins increases, the difficulty increases proportionally to keep the total new production constant. Thus, it is known in advance how many new bitcoins will be created every year in the future." "Generation is basically free anywhere that has electric heat, since your computer’s heat is offsetting your baseboard electric heating. Many small flats have electric heat out of convenience."

If you always act rightly, you might not see that the wrong way could be better.

Most people prefer a good lie to a bad truth.