Bitcoin Explosion Expected After This Purchase
Someone is planning to buy a lot of Bitcoins, which could cause a Bitcoin explosion. Read here who that is and why he is going to do it.
Terra founder Do Kwon hinted at a future $3 billion purchase of Bitcoin to supply the protocol’s reserves. He did this in a recent Twitter Space. This one was set up by Bitcoin enthusiast Udi Wertheimer. One of these announcements has to do with the inclusion of new token mechanics. Which takes into account some form of Bitcoin in the Terra ecosystem.
Terra ecosystem
In this regard, Kwon announced that Terra is working on bringing some form of tokenized Bitcoin to the Terra blockchain. This in the most decentralized form possible. Kwon also explained that with the addition of Bitcoin, UST (stablecoin within the system) would become a hybrid stablecoin. Allowing users to exchange $1 worth of UST for $0.99 worth of BTC. This would effectively allow users to exchange BTC. This by using UST for a premium of 1%. Almost in the same way that LUNA is now used.
When asked why Terra chose Bitcoin as a reserve asset, Kwon stated: “I mean a number of reasons here, but simply put, Bitcoin is the only hard reserve asset that has been proven from the digital currencies… It is very difficult for someone in crypto to put Bitcoin into to cast doubt’.
Bitcoin explosion
Kwon expects this new tokenized version of Bitcoin in the Terra ecosystem to become the de facto reserve currency of many protocols. In light of this, Kwon has released some figures on how much Bitcoin Terra will buy in the near term. The CEO of Terraform Labs stated that the company has a budget to buy $3 billion worth of Bitcoins in the near term and announced that most of these Bitcoins have not yet been bought. If he does, the price will probably get a boost.
