Failure to Bitcoin Diversify Cost Putin $12 Billion – Trustnodes

Failure to Bitcoin Diversify Cost Putin $12 Billion



Vladimir Putin, the Russian President, has ordered his central bank to stack up on gold for months with their reserves now rising to $102 billion worth of gold.

The bet has paid off, and somewhat handsomely for traditional markets, with Russia now having about 1/4th of America’s gold reserves.

Russian gold reserves, August 2019
Russian gold reserves, August 2019

As pleased as Putin might be, he has left a lot of money on the table if he did not stack up on bitcoin too.

During the first three months of the year, for example, Russia bought 145.5 tons of gold, worth about $6 billion.

The price of gold at that time was let’s say about $1,300. A bull run by their standard has now sent it to $1,500.

Gold's price, August 2019
Gold’s price, August 2019

That $6 billion worth of gold at the price of $1,300 would have made about $1 billion now quite a few months on.

Not bad, but nothing compared to what he would have gained had he bought bitcoin instead.

Bitcoin's price on weekly candles, August 2019
Bitcoin’s price on weekly candles, August 2019

Bitcoin’s price at that time was let’s say $4,000. Had he bought $6 billion worth of bitcoin then, at the price of now $12,000 that would have been worth a cool $18 billion.

A $12 billion gain in just six months would have made grandpa Putin smirk like no one, but who is to say he didn’t actually diversify?

Bitcoin, the Gold to Gold?

Six billion dollars worth of bitcoin at the price of $4,000 would amount to a cool ₿1.5 million, or about 10% of bitcoin’s entire supply.

Some 10.5 million bitcoin have not circulated at all for a year. So that ₿1.5 million would be about 20% of the somewhat more liquid ₿7.8 million supply.

Now that gets us very close to what Eleesa Dadiani of the Dadiani Syndicate said in May this year:

“One of our clients approached us and said they were interested in acquiring 25% of all bitcoin currently available. There are a number of entities who want to dominate the market.”

Putin himself is estimated to be worth a cool $70 billion, a lot more than property tycoon Trump.

That’s a lot of money to need to park somewhere. Is bitcoin one such place?

Who is to know, but Putin apparently fell “ill” with the blockchain in October 2017. So maybe he had some blockchains bitcoin.

As far as the central bank is concerned, presumably they haven’t touched bitcoin yet, leaving money on the table.

Why, isn’t too clear. Risky obviously a bit, but they can risk $1 billion out of $100 billion you’d think.

Maybe they have in secret, but perhaps unlikely as they have to disclose it. On the other hand if they do disclose it that might set a race among central bankers as they all try to get a bit of the very limited ₿21 million.

That’s especially in places that are cut off from the international banking system as Russia sort of is. They can still now make payments in gold, but, that’s like going back to the middle ages.

While with bitcoin… well it’s kind of instant and global and easily exchangeable for fiat even peer to peer. So if they haven’t diversified yet just in case someone floods earth with gold from them asteroids that apparently are full of yellow bricks, then maybe it’s only a matter of time until they do stack sats.


Comments (1)

  1. Russia is deeply involved in Bitcoin purchase as Russian famous economist Vladislav Ginko has hinted As I’ve recently read at his Twitter account @martik Russia’s elite uses stealth methods to acquire Bitcoin, through its Western proxies.

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