For any fan of Bitcoin, one of the great expectations is that the digital currency will become a widely accepted reserve. While this seems like a very distant dream, many enthusiasts believe that this is a natural path for the global economy, with the recent news that Terraform Labs will use bitcoin as a reserve for its stablecoin.
Terraform Labs, the company responsible for the cryptocurrency Earth (MOON)have plans to buy $10 billion in bitcoin for cryptocurrency to support its stablecoin. An announcement that even heated up the Bitcoin market recently. Reuters quoted Terraform Labs’ move as a 10 billion reason for Bitcoin becoming a global reserve. So far, the company has accumulated a total of US $1.7 billion with the purchase of about 40 thousand bitcoins, that is, about 17% of the total. The purchases were made through a nonprofit affiliate Luna Foundation Guard. The amounts raised so far can be viewed on the blockchain. Terraform’s purchase sequence occurred shortly after do kownthe company’s co-founder, will announce the plan to support TerraUSD (UST), the company’s stablecoin, in bitcoin.
“UST with $10 billion in Bitcoin reserves will open a new monetary era for the Bitcoin standard. P2P electronic money that is easier to spend and attractive to save”.
$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— Do Kwon 🌕 (@stablekwon) March 14, 2022
With this buying, we have already seen a positive movement in the market and the possibility that the recent upward movements have been sustained, first by buying, second by optimism with the situation.
sid powellCEO of Maple Finance, believes that this $10 billion worth of bitcoin can have a very positive impact on the bitcoin market.
“Buying $10 billion worth of Bitcoin can move the price in the short term. But over a longer period of time, it’s like a big sign – the sign that Bitcoin is being used as a new form of collateral to back currencies.”.
Bitcoin as a world reserve
The mood of Bitcoin investors is precisely that this type of action signals to the rest of the world that Bitcoin is a form of money reserve and even a drag on an entire economy. It is not only the purchase of bitcoin by Terraform that has been feeding this hope, even the sanctions against the Putin government have been one of the great possibilities that Bitcoin will become a great world reserve and possibly reach millionaire values for the coins.