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The “strategic reserve” exposes crypto as the scam it always was

alexkolchinski.com

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Re: The “strategic reserve” exposes crypto as the scam it always was

#11

Post by wolfgang42 »

schwarzrules wrote: post #6
sega_sai wrote: post #3

While I completely agree crypto is full of shysters and most likely crypto has zero intrinsic value, as well the current administration tries to enrich itself through crypto, I disagree that recent change in prices after announcement proves it is a scam. Because if the government would have announced a strategic reserve in maple syrup, the syrup futures would have increased in price drastically as well.

Was curious if a maple reserve existed. looks like Canada is leading the charge on that one: https://ppaq.ca/en/sale-purchase-maple-syrup/worlds-only-res...

Famously subject of the biggest heist in Canadian history: https://en.wikipedia.org/wiki/Great_Canadian_Maple_Syrup_Hei...

Re: The “strategic reserve” exposes crypto as the scam it always was

#12

Post by kolchinski »

sega_sai wrote: post #3

While I completely agree crypto is full of shysters and most likely crypto has zero intrinsic value, as well the current administration tries to enrich itself through crypto, I disagree that recent change in prices after announcement proves it is a scam. Because if the government would have announced a strategic reserve in maple syrup, the syrup futures would have increased in price drastically as well.

Oh yeah agreed that the change in prices doesn't prove it's a scam, my thought was more along the lines of - when crypto insiders who have been talking up crypto as valuable/important because it's independent of the government quickly change their tune and cheer on government intervention when it goes into their pockets, it makes it pretty clear what the dynamic actually is.

Re: The “strategic reserve” exposes crypto as the scam it always was

#13

Post by Eddy_Viscosity2 »

schwarzrules wrote: post #6
sega_sai wrote: post #3

While I completely agree crypto is full of shysters and most likely crypto has zero intrinsic value, as well the current administration tries to enrich itself through crypto, I disagree that recent change in prices after announcement proves it is a scam. Because if the government would have announced a strategic reserve in maple syrup, the syrup futures would have increased in price drastically as well.

Was curious if a maple reserve existed. looks like Canada is leading the charge on that one: https://ppaq.ca/en/sale-purchase-maple-syrup/worlds-only-res...

Strategic reserves for actual physical commodities makes some sense. Then can reduce the volatility in markets due to sudden unexpected market shocks. In the case of maple syrup that might mean a stretch of really bad harvests.

But digital currency is made up. It isn't 'needed' for anything. So there is no sense to have a strategic reserve.

Re: The “strategic reserve” exposes crypto as the scam it always was

#14

Post by Eddy_Viscosity2 »

peterldowns wrote: post #7

Can anyone who is pro-crypto (particularly: btc, eth) make the steelman argument for why a "strategic reserve" is necessary for these cryptocurrencies? Or even beneficial ? I've been involved in the industry in various ways for years and I fundamentally don't understand why the government owning a lot of btc/eth is advantageous. I understand the "reserve" part, but I don't understand the "strategic." I'm open to the…

The purpose is to have a bag-holder with deep enough pockets to absorb any selling pressure by the whales who own substantial crypto holdings. That's it. That's the whole reason.

Re: The “strategic reserve” exposes crypto as the scam it always was

#15

Post by zanecodes »

panarky wrote: post #5

The fact that scammers, fraudsters, Ponzi schemers and extortion racketeers have run trillions of dollars of swindles using US dollars is not evidence that the US dollar is a scam, a fraud, a Ponzi scheme or an extortion racket.

What percentage of USD transaction volume is made up of scams, fraud, Ponzi schemes, and extortion rackets? What percentage of BTC?

Re: The “strategic reserve” exposes crypto as the scam it always was

#16

Post by protocolture »

peterldowns wrote: post #7

Can anyone who is pro-crypto (particularly: btc, eth) make the steelman argument for why a "strategic reserve" is necessary for these cryptocurrencies? Or even beneficial ? I've been involved in the industry in various ways for years and I fundamentally don't understand why the government owning a lot of btc/eth is advantageous. I understand the "reserve" part, but I don't understand the "strategic." I'm open to the…

I am pro crypto and I absolutely could not steelman this.

Well let me put it this way.

From the perspective of crypto, crypto doesn't need the government. Honestly, the way eth has been running since the move to PoS, sort of operates with a reserve already. Crypto the technology, crypto the ecosystem does not need this. Its kind of stupid and as the article makes out, would have cypherpunks rolling in graves, unless the US goes the whole hog and converts entirely to crypto (so we can publicly audit bank holdings etc, and the government cant issue money) but that's unlikely. Honestly, adoption should be driven by making crypto more accessible without compromising security, and nothing else.

From the perspective of the government, it might make sense to have a reserve if they were going to do some kind of integration/development of crypto technology. Even if it was just to bring a wafer of stability to the platform while they participate.

However, the people that this benefits the most are the traders, so my cynicism is very high here. What shits me the most is that this brings honest to god sovereign risk to a sector thats meant to be asovereign. What if the next president dumps it all at a loss?

Re: The “strategic reserve” exposes crypto as the scam it always was

#17

Post by goosejuice »

quantadev wrote: post #10
peterldowns wrote: post #7

Can anyone who is pro-crypto (particularly: btc, eth) make the steelman argument for why a "strategic reserve" is necessary for these cryptocurrencies? Or even beneficial ? I've been involved in the industry in various ways for years and I fundamentally don't understand why the government owning a lot of btc/eth is advantageous. I understand the "reserve" part, but I don't understand the "strategic." I'm open to the…

I can almost guarantee you most everyone who owns BTC will be 100% in favor of anything that will drive up it's price, because they falsely equate it's price as it's value. It has zero value despite it's price, just like beanie babies and Tulips always did.

How are you defining value here?

Re: The “strategic reserve” exposes crypto as the scam it always was

#18

Post by [deleted] »

peterldowns wrote: post #7

Can anyone who is pro-crypto (particularly: btc, eth) make the steelman argument for why a "strategic reserve" is necessary for these cryptocurrencies? Or even beneficial ? I've been involved in the industry in various ways for years and I fundamentally don't understand why the government owning a lot of btc/eth is advantageous. I understand the "reserve" part, but I don't understand the "strategic." I'm open to the…

[deleted]

Re: The “strategic reserve” exposes crypto as the scam it always was

#19

Post by tanseydavid »

quantadev wrote: post #8

If tax dollars are ever used to buy cryptos, that's simply a transfer of wealth to the crypto sellers, in exchange for nothing in return. This is just another "Tax and Waste" policy. It's just money taken from one group just to give to some other group. It's immoral and illegal, because the gov't is not an investment bank.

Would you agree that the Strategic Oil Reserve has exactly the same qualities?

Re: The “strategic reserve” exposes crypto as the scam it always was

#20

Post by tejohnso »

peterldowns wrote: post #7

Can anyone who is pro-crypto (particularly: btc, eth) make the steelman argument for why a "strategic reserve" is necessary for these cryptocurrencies? Or even beneficial ? I've been involved in the industry in various ways for years and I fundamentally don't understand why the government owning a lot of btc/eth is advantageous. I understand the "reserve" part, but I don't understand the "strategic." I'm open to the…

Steelman is a bit of a stretch on this move. It sounds to me like the government is seeding doubt in its own reserve currency and propping up a different currency. The only sane thing I can think of is that it's a hedge against a complete loss of faith in the dollar. But then the case would have to be made for this over going back to gold.
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