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Yes, it's going to make some people very rich.
Ohh, you mean to the country as a whole? No.
Nope, it's just a pump.
I would bet it’s a way to send money to Russia.
Why not both?
Well it’s using one to do the other, so yes
"I actually think the purpose of a Bitcoin reserve is to temporarily increase the price so tech-bros (re: Elon) can sell at a massive profit. Then buy back at a much lower price. It’s just a way to indirectly transfer federal dollars into administration pockets."
This is the way. It's the only reason they'd do it.
I seriously doubt BRICS has anything to do with Bitcoin, but the US is absolutely concerned about losing the status of world currency. It's literally how we survive while running a massive deficit. When the rest of the world finds a way to do business without the US getting its cut we're going to be in deep shit.
That's exactly what the plan is. They're funneling themselves government money, but in a way that's less traceable
The only real benefit I can see would be to have the ability to suddenly crash the market on demand. This might be an interesting way to temporarily disrupt states trying to evade sanctions with crypto, but probably not a great investment on the $ to impact scale.
Short version: No.
Long version: Nooooooo.
Polite answer: No.
Impolite answer: Fuck no!
The idealism Bitcoin was allegedly created on is long dead.
2010: We can have a currency that the government can't manipulate!
2024:...
It lets those with bitcoins cash out and leaves the taxpayer holding their bags. That’s it.
Just the rumor of it alone benefits HODLers, and Trump has HODLers who donated to his election campaign.
No, Please tell me it's not in Elon playbook ?
US money is incredibly strong, so US$ is way more interesting.
15 years after it's creation the bitcoin failed to meet the expectation of being a usable money or even "way to pay"
It can’t process 1/100th of what visa does in a day, let alone the other card processors on top of it
It is the same reason why the USA still holds gold and silver even through they aren't pegged to the dollar, it is an asset class which could be useful in the future.
The issue is that relative to gold or silver, Bitcoin is very volatile. A crashing bitcoin could endanger the reserve, forcing the government to double down, making the volatile nature a bigger issue.
Yes gold is somewhat volatile but compared to Bitcoin, it is super stable. And ofc gold and silver are real resources that you can do for their physical properties.
Price support can be a reason to create a reserve, but it isn't the only reason. Most countries don't plan their good and silver purchases based on trying to meet a value represented in currency.
You can make that argument in 5000 years. As of today, it's still equivalent to MtG cards.
So what you're saying is we need a strategic MtG card reserve.
A lot of countries keep a reserve of Euros, which is a fiat currency not tied to a single country and only came into being about 25 years ago.
Currency is like Tinkerbell, it only lives through belief in it. Right now, enough people believe in Bitcoin being a currency and that belief doesn't seem to be going away as long as the Internet still exists.
Considering that the US Mint can literally print money, I can't think of any reason either. I guess it won't affect inflation as much, but still mass selling it will increase the money supply available to the government.
This vice article gets into some technical reasons why, although appearances can, and often do, operate independently of incentive and benefit.
I don't think there is a good reason for anyone to buy Bitcoin, let alone the US government.
The worst part about this is the thick as shit stupid tony countries who will have their citizens robbed even worse by their own small thick shitty governments. This is the age of fucking stupidity
yeah you got it. I mean maybe in some alternate universe where energy overabundance is a real problem and we have to figure out how to get rid of excess because it causes explosions or something. then it would make sense.
I would much rather we had a BTC reserve than we CONTINUED MAKING ACTUAL COINS.
When I visited the Denver mint around 25 years ago our tour guide mentioned we lost about half a cent on every penny we make.
I was in Australia recently. I don't think I got any change smaller than 20¢. I did find a 5¢ coin on the sidewalk. The smallest "paper" money is $5, and it's plastic.
And everywhere here you can pay a $1 bill with credit card so I don't carry money anymore
Dunno, just make sure your stop-loss orders are set so you don't get burned when the dip comes.
Nope. The US government should just create its own uncounterfeitable, energy efficient digital dollar. Put Bitcoin out of business.
The value of bitcoin is that no one can just print as much monopoly money politically.
That's not what business bitcoin is. Bitcoin is in the pump business.
Should there be a collapse of the US economy, or global markets stop using the dollar standard, or sanctions placed on US banks by other countries, a store of alternative currency is good to have.
Oh yeah sure, Bitcoin will be worth a lot when the US economy collapses. lol
Isn't that what gold is for? Does US still reserve gold? I seem to remember both James Bond and Die-Hard fighting to protect the gold reserve.
If the US reserves gold, why do they also reserve silver? Why do they reserve grain, oil, steel, cheese, or foreign currencies?
Because it's dumb to put all your eggs in one basket and the more you diversify, the safer it is. Like it or not, Bitcoin is an asset; and barring a global disaster that knocks out all electronics, it's unlikely to go away. It makes sense to have some and sit on it.
Will there come a time when everything falls apart and the only way to trade with another power is with tons of wheels of cheese? Probably not, but if it does, the US is ready.
Will the same ever happen with Bitcoin? Probably not, but if it does, the US is ready.
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Allegedly. I personally knew a pilot who flew weekly trips in the 70s to Asia in C-130s filled to the maximum load of gold. So I have my doubts. Several years ago there was a push from Congress to inspect the gold reserves because nobody had laid verifiable eyes on it in a while. But I do not know how that worked out. It’s a great rabbit hole for you to follow - let us know what you find!
If gold was missing from US reserves, they wouldn't admit it.
I replied to someone who posited the collapse of the US economy such that alternatives to money would be necessary.
If it was a secret, the pilot would not be told. If it wasn't a secret, it would be documented.
Even assuming the story is true there is a huge leap between gold being shipped and it being Fort Knox Gold.
For example many countries stored their gold at the US federal reserve for safety. China would have sent their Gold to the US during WW2 because they were overrun by Japan. After Nixon normalized relations with China, they would have gotten their Gold back.
temporarily increase the price so tech-bros (re: Elon) can sell at a massive profit.
Actually it is similar to gold reserves (bitcoin is better) without advantaging competitor nations that have gone in on gold reserves already. There is an energy/mining motivation aspect as well as a populist widespread participation.
In terms of "real purpose", US debt can grow much more unsustainably, and there is something to fall back on when a default occurs. The tech bros that helped Trump do want to use other crypto projects for fintech and other innovation, rather than pump it and dump it.
Bitcoin isn't gold or oil.
Gold is a thing. It has some utility. You can make other things with it. You can reprocess it into different things.
Oil is a thing. It can be burned as fuel, or made into other things.
Bitcoin is a ledger protocol with limited entries. It is good for peer-to-peer transfer of cash, and speculation. The speculation aspect is a pyramid scheme though, as it's only backed by the hope that people keep paying more for the ledger spaces, which undermines its function as a medium of exchange, and is unlikely to last as alternative ledgers are abundant, including those that are better suited for private exchange like Monero or ZCash.
Lacking intrinsic value, the only reason to create a strategic reserve of Bitcoin is like that of any other foreign currency. So, market manipulation? A lack of stability in your own currency (but Bitcoin is mostly USD backed)? International exchange (but USD and Euros are better)?
There will never be a default on US debt unless it's by choice. US debt is in US dollars, which the US makes. There will be inflation. Goods may end up being exchanged in another national or international currency someday. It won't be Bitcoin.
The jewelry and industrial value of gold is minimal to its reserve value. Vast majority of gold is in form of bars sitting in national vaults. Zero intention of ever using those bars for jewelry/industrial applications.
Bitcoin's advantages over gold include
- proof, security, and cheapness of reserves including greater protection from war pillage.
- Cheaper and secure transactions. war, piracy, shipwreck proof. Divisibility is also a transactional advantage.
- wealth escape options, including banking/sovereign failure and sanctions.
- Cryptographic applications and protocol extensions including layer 2. But other crypto networks depend on bitcoin.
- Better "tokenomics" than gold. Mining supply of gold increases when prices rise, and also attracts jewelry owners to trade in their jewelry for it to be melted. New reserves always possible finds.
- Points 2 and 3 also make for faster and more secure banking system settlements. You don't need to rely on counter party bank not declaring bankruptcy for next 3 days.
Bitcoin is mostly USD backed?
No. You can buy bitcoin miners in bitcoin. Electricity costs are always charged in local currency.
There will never be a default on US debt unless it’s by choice. US debt is in US dollars, which the US makes. There will be inflation. Goods may end up being exchanged in another national or international currency someday. It won’t be Bitcoin.
QE worked last time because China helped QE by also buying up US bonds. A much larger QE with US at war/tariff war with whole world will put USD at a credibility crisis, if not in next recession then the one after that. Fractional banking is the real ponzi scheme, and a banking crisis, a property collapse that causes bank collapse. Colonial currencies are not an option to escape USD devaluation, unless they free themselves from servitude. Chinese policy has so far not embraced strong currency value. Bitcoin will always be protection from financial collapse/decline.
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this post was submitted on 17 Dec 2024
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