{"id":426805,"date":"2022-04-05T12:25:03","date_gmt":"2022-04-05T09:25:03","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/biggest-future-btc-whale-explains-why-bitcoin-was-chosen-for-decentralized-forex-reserve\/"},"modified":"2022-04-05T12:25:03","modified_gmt":"2022-04-05T09:25:03","slug":"biggest-future-btc-whale-explains-why-bitcoin-was-chosen-for-decentralized-forex-reserve","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/biggest-future-btc-whale-explains-why-bitcoin-was-chosen-for-decentralized-forex-reserve\/","title":{"rendered":"# Biggest future BTC whale explains why Bitcoin was chosen for &#8216;decentralized Forex reserve&#8217;"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3c5917d9b1d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3c5917d9b1d\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/biggest-future-btc-whale-explains-why-bitcoin-was-chosen-for-decentralized-forex-reserve\/#%E2%80%9D_Biggest_future_BTC_whale_explains_why_Bitcoin_was_chosen_for_%E2%80%98decentralized_Forex_reserve_%E2%80%9C\" >&#8221; Biggest future BTC whale explains why Bitcoin was chosen for &#8216;decentralized Forex reserve&#8217; &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/biggest-future-btc-whale-explains-why-bitcoin-was-chosen-for-decentralized-forex-reserve\/#Kwon_BTC_buys_will_continue_%E2%80%9Cin_perpetuity%E2%80%9D\" >Kwon: BTC buys will continue &#8220;in perpetuity&#8221;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/biggest-future-btc-whale-explains-why-bitcoin-was-chosen-for-decentralized-forex-reserve\/#All_hail_the_largest_Bitcoin_whale\" >All hail the largest Bitcoin whale?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Biggest_future_BTC_whale_explains_why_Bitcoin_was_chosen_for_%E2%80%98decentralized_Forex_reserve_%E2%80%9C\"><\/span>&#8221; Biggest future BTC whale explains why Bitcoin was chosen for &#8216;decentralized Forex reserve&#8217; &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-2a0745c6>Bitcoin (BTC) is the collateral asset of choice for the world&#8217;s biggest decentralized stablecoin, and one of its top executives says there was no other.<\/p>\n<p>Speaking to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/videos\/2022-04-04\/why-terra-wants-to-be-the-biggest-bitcoin-whale-video\">Bloomberg<\/a> on April 4, Do Kwon, co-founder of Blockchain protocol Terra, pledged to continue buying BTC to back the firm&#8217;s stablecoin, TerraUSD (UST).<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Kwon_BTC_buys_will_continue_%E2%80%9Cin_perpetuity%E2%80%9D\"><\/span>Kwon: BTC buys will continue &#8220;in perpetuity&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Terra has made waves inside and outside the crypto community in recent weeks thanks to its massive Bitcoin buys.<\/p>\n<p>Currently at just over 30,000 BTC, the reserves of Terra nonprofit the Luna Foundation Guard (LFG) are due to expand to the equivalent of $10 billion.<\/p>\n<p>In his latest comments, however, Kwon went even further, saying that as long as UST is minted, Terra will keep buying BTC to back it.<\/p>\n<p>&#8220;One important thing to remember about what we&#8217;re going here is that this is not a corporate treasury decision in the sense that I am not buying Bitcoin,&#8221; he told Bloomberg TV.<\/p>\n<blockquote><p>&#8220;I&#8217;ve already donated money so that we can build up these reserves on behalf of the community and we plan to be doing this in perpetuity, so the $3 billion or so that we&#8217;re buying initially to bootstrap the reserves is going to be followed up by&#8230; persistent buys of Bitcoin through UST seniorage&#8230; every time UST is minted, there will be new bitcoin that is added to the reserves.&#8221;<\/p><\/blockquote>\n<p>As a decentralized stablecoin, anyone can &#8220;mint&#8221; UST by burning $1 worth of another decentralized asset, Kwon explained. UST is the largest decentralized stablecoin with a market cap of around $16.5 billion. Tether (USDT), the largest stablecoin as a whole, has a market cap of $82 billion.<\/p>\n<p>&#8220;The easy way to understand this is that we&#8217;re using Bitcoin to create a decentralized Forex reserve for the Terra stablecoin,&#8221; he summarized.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"All_hail_the_largest_Bitcoin_whale\"><\/span>All hail the largest Bitcoin whale?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Active on <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a>, Kwon has previously pledged to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/stablekwon\/status\/1511017532764803078\">overshadow<\/a> any form of competition, notably MakerDAO&#8217;s DAI stablecoin.\u00a0<\/p>\n<p><strong><em>Related:\u00a0\u2018Hold my beer\u2019 \u2014 Terra already up $165M from buying Bitcoin as BTC stash nears Tesla\u2019s<\/em><\/strong><\/p>\n<p>The Luna Foundation Guard is well in the green as Terra co-founder Do Kwon stresses he is not \u201ccapable of moving\u201d Bitcoin markets.<\/p>\n<p>While cryptically <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/stablekwon\/status\/1510192448450211843\">telling<\/a> followers that he was &#8220;just getting started&#8221; last week, Kwon has yet to give any further concrete details regarding the timeframes of the BTC buys.<\/p>\n<p>The <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/bitinfocharts.com\/bitcoin\/address\/bc1q9d4ywgfnd8h43da5tpcxcn6ajv590cg6d3tg6axemvljvt2k76zs50tv4q\">wallet<\/a> belonging to LFG last saw inflows on March 30. With 30,727 BTC, it is the 29th largest BTC address.<\/p>\n<p>Once complete, Terra&#8217;s reserves will outgun those of <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/bitcointreasuries.net\/\">any corporate treasury<\/a>, and will make Kwon and his team the largest Bitcoin whale.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-04\/6ca0b216-9124-44b1-929f-b63ed4dc014f.png\"><figcaption style=\"text-align: center;\"><em>LFG Bitcoin wallet (screenshot). Source: BitInfoCharts<\/em><\/figcaption><\/figure>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/biggest-future-btc-whale-explains-why-bitcoin-was-chosen-for-decentralized-forex-reserve\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Biggest future BTC whale explains why Bitcoin was chosen for &#8216;decentralized Forex reserve&#8217; &#8220; Bitcoin (BTC) is the collateral asset of choice for the world&#8217;s biggest decentralized stablecoin, and one of its top executives says there was no other. Speaking to Bloomberg on April 4, Do Kwon, co-founder of Blockchain protocol Terra, pledged to&#8230;<\/p>\n","protected":false},"author":1,"featured_media":426806,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDQvZDg3ZTQ5ODgtMzQzYy00MTkwLThiZjctNjJiYWFiYTIyOGNhLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74862,74937,75493,122378,73785],"class_list":["post-426805","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-bitcoin","tag-bitcoin-price","tag-stablecoin","tag-terra","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/426805","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=426805"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/426805\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/426806"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=426805"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=426805"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=426805"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}