"On June 28, the North Carolina House of Representatives passed the bill which would commission a $50,000 study to examine “acquiring, securely storing, insuring, and liquidating” both gold bullion and “virtual currency [...] such as Bitcoin.”

This part of the article is very unclear. I study Bitcoin for free with so many resources most of which are free or require just a little payment.
Their interest is good but it is still very early to decide on what direction they would go as the bill is only for studying the possibilities. If it is positive they would have to pass another one to actually acquire it.

- Jay -

Holding of 50k$ in BTC to examine the volatility in comparison of Gold. Does not looks like a good comparison in specific property of volatility but if they compare them in terms of hedge against inflation, scarcity, demand, supply, profit and loss ratio them I am sure they will find BTC a winner.

But things can change if BTC will go down in coming days and what if they went into loss, like will they ban Crypto fully in their state. Like in the month of March 2023, there were several restriction on crypto. It would also result as a good factor to increase the BTC price too in future if BTC win the battle against gold in their organized competition.

I don't think that it's a good idea to do something like this because it's a fact that Bitcoin is way more volatile than gold, and the volatility could be the cause of huge gains or losses within shot period as compare to gold. The gold isn't that much volatile and that's why it many not lose or gain a lot of value in short period. This type of experiment will favor gold if the crypto market dumps, and it will only favor Bitcoin if crypto market pumps.  Such type of studies will most probably favor gold as a less volatile and secure asset.

The result will most probably be in favor of gold because if this study is for short period, and unfortunately Bitcoin gets another dump in coming days then the value of their holdings that are in Bitcoin will be way lower than the ones they have in gold. Let's say if they have allocated $25k for gold and $25k for Bitcoin, and if an unsudden market crash takes place, and the value of Bitcoin goes back to $27k then the value of their holdings in Bitcoin will be $22,140, and that would be very low as compare to the holdings they have in gold.

Even more than that politicians care about one thing, public opinion, if they were to buy bitcoin and the the price of bitcoin went down, you can be sure their political opponents will immediately attack them for the huge mistake that it was to buy bitcoin and influence a great deal of voters during the next election to not vote for a their opponents that are making people to lose money, more than anything that is what worries them and in a way they are right as politicians care about the power they can get and nothing else.

It is a study so I do not think it is a bad idea.  At least if they found that holding Bitcoin is beneficial to the states, they can escalate the study to realization of the states holding Bitcoin for future gain.


Remember Bitcoin is about to enter the Bull run in the coming months.  If the bill is approved before the bull run starts, it will surely outperform the gold market.  There is no need for your worries, regardless if they see that Bitcoin is not a good investment, noting is lost there since they had been on that stance since the beginning but if Bitcoin performs well, and they acknowledge that Bitcoin is beneficial for the states then Bitcoin will gain something from the experiment and that is being adopted by a state and that will possibly bring FOMO to the market.

Very unlikely a state of the United States of America would start to hold Bitcoin as part of their treasury, because in the end the federal government would rather people and institutions to stop adopting BTC in favor of their own centralized national currency, which I assume they expect to launch as soon as they can, like China.

So, they can study all they want and decide whether they want to hold certain asset, it does not mean much, at least, for now.
However, I won't deny that a state of the USA actually adopting BTC this way would be huge news.

Nah, it's just small amount though, and I don't think that they can just come up with a conclusion that holding bitcoin is good.

Just like El Salvador, up to this day, there are still a lot of people who opposes Bukele's move specially when they started to lose money on their balance sheet. But what if bitcoin goes on a bull run next year?

How much is that $50k? - xxx,xxx or more? can they conclude then that bitcoin is the best asset to hold and not gold?

Based on market structure, we are in a bullish market in the weekly time period. However, the volume has not been the same since 2021, creating a significant market momentum. And I believe that now is the moment to invest in Bitcoin. If the bill gets approved, I believe it will attract more investors, causing the price of Bitcoin to rise and possibly reach a new high potentially hit $37k. Technical analysis is effective, but Fundamental analysis goes beyond that. If this happens, it will be a fantastic news for Bitcoin.

It is simply the bureaucratic way the institutions work. In order to adopt certain measures they require a prior study and they commission someone who is supposedly prestigious on the subject to do a study.


Yes, the first baby step on a long road if they finally get to buy and hold bitcoin.

This is a good move. Hopefully, the study can find more rewards than risks in holding Bitcoin as we know that it is a very volatile asset unlike gold which is moving slowly. Anyway, this is just a study but then again this shows that more and more institutions even coming from the government side are now showing strong interest on cryptocurrency and how they can be able to take a good ride with the waves. Well, the timing is right and hope they take a good move in getting some BTC as soon as possible.