I'm assuming that next, the US will invest in a "Strategic Tesla stock reserve."
The “strategic reserve” exposes crypto as the scam it always was
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Re: The “strategic reserve” exposes crypto as the scam it always was
#42Earlier quoted context omitted.
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.
> there is no sense to have a strategic reserve FX reserves. (Doesn’t apply here. But stockpiling social constructs can still make sense.)
I think the closet example here would be if the Federal Government had started a "beanie babies" strategic reserve back in the 90s.
Re: The “strategic reserve” exposes crypto as the scam it always was
#43Re: The “strategic reserve” exposes crypto as the scam it always was
#44If 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?
Oil is notably necessary to keep the united states military operational (in addition to the uses in other comments).
Re: The “strategic reserve” exposes crypto as the scam it always was
#45I'm assuming that next, the US will invest in a "Strategic Tesla stock reserve."
I would not be opposed to the Federal Reserve buying VTI and distributing the dividends as UBI.
Re: The “strategic reserve” exposes crypto as the scam it always was
#46Can 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 best case is an argument similar to the reason the US gold reserve exists. While the gold no longer directly backs the currency, gold is a neutral asset and wouldn't go to zero during wars/depressions, so could be sold strategically if needed to fund government in a dire situation. The claim is that BTC is also a neutral asset, meaning it's not linked to any one government or economy, and it has certain propertie…
BTC is better than gold in many regards.
- impossible to counterfeit
- trivial to audit
- easy to transfer
- easier to store
- its supply is actually limited (unlike gold, which is near-infinite in the universe). Most of it has been mined. Its supply will actually diminish over time, as keys get lost forever, though it's hard to tell how fast that process is.
Re: The “strategic reserve” exposes crypto as the scam it always was
#47If 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.
On the bright side we're no longer wasting money on shit people don't need like weather prediction.
Re: The “strategic reserve” exposes crypto as the scam it always was
#48I'm fine with crypto for transactions, but I'm not fine with my government using our money to pick winners and losers, conflicts of interest, emoluments, or artificially propping up what are likely bubbles and pyramid schemes.
Re: The “strategic reserve” exposes crypto as the scam it always was
#49Re: The “strategic reserve” exposes crypto as the scam it always was
#50Incredible conflict of interest here.
And probably emoluments too.