The USA adopting Bitcoin as a strategic reserve would be a monumental step in the global financial system. While Bitcoin would immensely benefit from such a decision, the impact on financial markets, stocks, and meme coins would be questionable. Financial experts and political analysts are at odds on whether or not Bitcoin will officially be part of the US reserve with predictions ranging from 25-60% in favor of it happening in 2025.
At the moment, the US government owns about 200,000 Bitcoins seized from illegal activities, mostly the infamous Silk Road. The newly proposed bill directs the US Treasury to establish a Strategic Bitcoin Reserve as part of a decentralized network. In that case, the US Bitcoin holdings would have to be transferred to the reserve. With the big push from the president and the Department of Government Efficiency, the positive decision would likely happen sometime this year. For now, speculators are buzzing about this being a progressive move on the part of the government, while others stay cautious stating that it could lead to another financial crisis.
Looking purely at the facts, what would happen if the United States, the world’s largest economy, adopted Bitcoin as part of its strategic reserve?
It is important to first examine what a strategic reserve is and why such a decision would be significant. Every economy keeps critical resources that a country keeps on hand to ensure national security or economic stability. Essentially, governments stockpile valuable resources, like gold and crude oil, in case of disruption in supply on the global markets. Adopting a new form of reserve, such as cryptocurrency that practically exists only in digital form, would diversify financial resources while protecting them from the volatility of traditional currencies.
Why Bitcoin?
The first and most valuable cryptocurrency in the world is the natural choice for keeping part of the reserves in digital form. Its decentralized method ensures higher security and privacy of financial transactions. Furthermore, Bitcoin is not regulated by any government and has a cap of 21 million which means that it is not susceptible to inflation. No one in the world, no country, government, or treasury can control how many coins are available on the market. It’s regulated by users who trade Bitcoin on online platforms. A basic system of supply and demand regulates the price of every cryptocurrency.
Political shifts of power can have an effect on the price but have no power to dictate it. Other economic powers like Russia and China have shown an interest in Bitcoin, so by incorporating Bitcoin into its reserves, the USA could stay one step ahead and maintain its competitive edge as the leader of the global financial system. Countries like El Salvador have already taken the bold step of adopting Bitcoin as legal tender, while institutional investors, including corporations like Tesla and MicroStrategy, have added Bitcoin to their balance sheets.
Diversification is the key to sustainability. Currently, the US has large reserves in oil and foreign currencies. It relies heavily on the stability of fiat currencies, particularly the US dollar which can be problematic if the sentiment about the currency changes in other countries. It can be devalued overnight if any of the major economies decide to dump the dollar from their reserves and replace it with some other currency. This vulnerability led the US government to consider other ways to protect itself from shifts of power in the world.
The Potential Impact on Bitcoin
The USA is the world’s largest economy, and its actions in the financial markets often have global repercussions. The demand would surge, driving the price to double or triple in a short time. Adopting Bitcoin would be seen as the guarantee of its stability which would make financial institutions invest in cryptocurrencies in general as well as in ETFs, futures, and options.
However, if Bitcoin becomes a legal tender some regulations would have to be implemented. Digital assets management and transparency would be necessary to squash concerns about volatility of cryptos while at the same time protecting it from being part of illegal activities.
Also, adopting Bitcoin would trigger developers and whales (large crypto holders) to further build new applications and financial products based on Bitcoin’s role in the global economy.
Impact on Meme Coins
Meme coins and cryptocurrencies are often driven by social media trends and online communities. It’s not uncommon for celebrities and influencers to drive the prices up and down dictating the popularity and volatility of a specific coin. Furthermore, their value is closely connected with the value of the major crypto – Bitcoin, which affects the prices of all cryptocurrencies on the market. Meme coins, such as Dogecoin (DOGE) and Shiba Inu (SHIB), have gained widespread attention due to their speculative nature, and involvement in internet culture.
Positive Impacts
Increased legitimacy for the crypto market would put a more positive outlook on the entire market. Even though meme coins would not be part of the reserve their attachment to the Bitcoin value would hike up the prices thus increasing demand and reputation.
Celebrities and other well-known personalities could play a major role in the value of meme coins. Promoting one or several of them significantly impacts the market price. The popularity of the influencers spills over to the coins making them desirable for dealing in financial transactions.
Negative Impacts
Meme coins are highly speculative assets. There is a rising concern among meme coin holders that adopting Bitcoin as a reserve will leave less desirable cryptos in the shadow of the golden standard in the crypto market. Once banks invest in Bitcoin, they will ensure that their investments are not susceptible to volatility and unpredictable speculations. Being that speculators are responsible for the meme’s price, it’s highly unlikely that investors will show any interest in buying unstable currencies.
Scrutiny around pump and dump coins might increase since we have already seen this happen several times in the past. Surely Bitcoin will be regulated, but meme coins will also have to undergo some kind of reform. SEC has already sent a message to meme coin holders that possible crackdowns and restrictions will be put in place in case Bitcoin becomes a legitimate part of the Treasury Department reserve.
The Role of Online Casinos in the Crypto Ecosystem
As the cryptocurrency market evolves, various uses for digital currencies are emerging, one of which is the integration of cryptocurrencies into online gambling platforms. With its added layer of protection for the players, cryptos became more desirable forms of payment in online casinos. Games that attract major players, like blackjack, have already adopted cryptos. Bitcoin’s potential inclusion in the US strategic reserve could further promote this trend.
What is Blackjack?
Blackjack is one of the most popular card games in casinos around the world, known for its relatively simple rules and exciting pace. The game is played between the dealer and players, and the goal of Blackjack is to have a hand value as close to 21 as possible without going over. Everyone is dealt two cards and they can choose whether they’re going to stand – meaning they don’t want any more cards or to hit – meaning adding one more card given by the dealer.
In Blackjack, cards numbered 2 through 10 are worth their face value. Face cards, Jack, Queen, and King, are all worth 10, and an Ace can be worth either 1 or 11, depending on which value benefits the hand more. A Black jack is when cards equal exactly 21, for example having an Ace and a King – 11 plus 10 equals 21.
How to Deal in Blackjack?
Dealing in Blackjack requires knowledge of the game’s rules and handling of the cards. If you’re not familiar with the game check out Stake.com where you can see dealers live, playing with other users. There you can pick up on the basics, but in the meantime here’s the rundown of playing Blackjack online.
Step 1: Shuffle the Cards. The dealer must thoroughly shuffle the cards many times to ensure fair play and avoid any suspicion about the game being rigged.
Step 2: Set the Bets. Before the cards are dealt to each player, they must place a bet on the designated spot. The dealer is responsible that everyone who wants to take part in the game places their wager before he or she starts dealing.
Step 3: Deal the Cards. The dealer gives two cards to each player, face up. The dealer gets one card face up, and the other one face down called the hole card.
Step 4: Player’s Turn. Starting clockwise from the dealer, meaning from his left side, the dealer asks each player to make a decision on whether he wants to stand or hit. There are more options. Players can choose to double down meaning that they want to double their bet before getting another card. Also, they can choose to split the two cards and draw two more cards pairing them with the first ones. This means doubling chances for the win since the player now has two sets in front of him – four cards in total.
Step 5: Dealer’s Turn. After all players have completed their turns, the dealer reveals their hole card. The dealer must draw cards according to the casino rules, usually stopping when their hand reaches 17.
What is Insurance in Blackjack?
Insurance is a side bet available when the dealer’s upcard is an Ace and it can be up to half of the original bet. Chances of the house winning are increased every time the dealer pulls an Ace as the face up card. If a dealer has Black jack, the player wins the insurance bet, not the original one. If not, the player loses.
How to Count Cards in Blackjack?
Card counting is used to get an idea of how many high cards are left in the deck. If the dealer pulled mainly low cards there’s a good chance that you’ll get a high card if you choose to hit. However, card counting is not foolproof, and most casinos take measures to prevent or detect it.
When to Split in Blackjack?
Splitting happens when the player is dealt two identical cards. They are split into two separate hands and each hand is added another card.
Never split face cards, since you already have a value close to 21. The risk of getting an Ace is slim, so stay safe and keep the layout as it is.
Always split Aces and 8s for different reasons. Aces can potentially mean that you’ll hit 21, and two 8s add to 16 which is one of the worst positions in playing online blackjack.
When to Double Down in Blackjack?
Doubling down simply means doubling your bet when you get two good cards.
It is highly recommended when you have 11, as there are a lot of 10-value cards in the deck, raising your chances for the win.
If you have two 10s, doubling down can be a smart move especially if the dealer has low value cards.
In case you get an unfavorable score of 16, 17, or 18, and the dealer has very low value cards like 2s and 3s, there’s a chance for the win so consider doubling your bet.
When to Hit in Blackjack?
If you get two low value cards, like 2s, 3s, 4s, definitely go for another card from the deck. If your total is between 12-16 hit if the dealer has a 7 or higher, but stand if the dealer has 2-6. If you have an Ace, choose hit since the card’s value is twofold and the chances of going over 21 are low.
How to Play Blackjack at Home?
Play it the same as you would in an online casino. The only thing everyone has to agree on is whether or not you’ll implement all rules, like insurance, doubling down, or splitting. One deck is enough, but two or three would make the experience feel more like a real casino game.
In online casinos, Blackjack is played with up to eight decks. Casinos often use multiple decks in order to make card counting more difficult.
Where to Play Blackjack in RDR2?
In Red Dead Redemption 2 (RDR2), players can find Blackjack tables in several locations.
Blackwater is one of the most prominent places to play Blackjack in the game.
Saint Denis is a bustling city where you can find a casino with Blackjack games.
As cryptocurrencies continue to gain acceptance in various sectors, including online casinos, the impact of Bitcoin on industries, particularly games like blackjack, is likely to grow. The evolving relationship between traditional finance, and cryptocurrencies, will shape the future of digital assets.
