Nope, it's just a pump.
this post was submitted on 17 Dec 2024
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I would bet itβs a way to send money to Russia.
Why not both?
Well itβs using one to do the other, so yes
Short version: No.
Long version: Nooooooo.
Polite answer: No.
Impolite answer: Fuck no!
"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. Itβs 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
It's not "less traceable", bitcoin is a public ledger, literally every transaction is documented on the blockchain for anyone and the IRS to see.
... Less traceable in that the price of the coin going up and them cashing out isn't a direct line from the government coffers to their pocket.
I'm aware it's a public ledger.
The idealism Bitcoin was allegedly created on is long dead.
2010: We can have a currency that the government can't manipulate!
2024:...
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Yes, it's going to make some people very rich.
Ohh, you mean to the country as a whole? No.
It lets those with bitcoins cash out and leaves the taxpayer holding their bags. Thatβs 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.
You can make that argument in 5000 years. As of today, it's still equivalent to MtG cards.
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.
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.
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 canβt process 1/100th of what visa does in a day, let alone the other card processors on top of it
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.
Just the rumor of it alone benefits HODLers, and Trump has HODLers who donated to his election campaign.
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.
I don't think there is a good reason for anyone to buy Bitcoin, let alone the US government.
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This vice article gets into some technical reasons why, although appearances can, and often do, operate independently of incentive and benefit.
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. Itβs a great rabbit hole for you to follow - let us know what you find!
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.
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.
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.
Nope. The US government should just create its own uncounterfeitable, energy efficient digital dollar. Put Bitcoin out of business.
That's not what business bitcoin is. Bitcoin is in the pump business.
The value of bitcoin is that no one can just print as much monopoly money politically.
America making big play for Worldβs first Fourth World country. All the sci-fi authors got it wrong thinking the global corps would turn developing countries into vassal states .
For America? I can't think of any - being a global superpower, they have endless other better ways to do everything they might need it for.
For the rest of us, easier darknet drugs, I guess. It makes it a lot harder to ban crypto.
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. Itβs just a way to indirectly transfer federal dollars into administration pockets.
I mean, I guess, but that actually gives them more credit than I think they deserve for being smart. I think they're just bringing their bullshit hype with them into office.
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.
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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
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