It's my understanding that the prevailing pro-crypto view is that it's a store of value not a payment system.
That's the sucker view. It's only useful for transactions because it's too risky to hold.
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
#52If 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.
Or nuclear stockpile maintenance, firefighters, or clean water. Who needs that shit anyhow when everyone has their own private firefighters, goons, and water filtration?
/s
Re: The “strategic reserve” exposes crypto as the scam it always was
#53Earlier quoted context omitted.
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.
And completely worthless in the event of war with attacks on power grids electronics etc. Gold on the other hand, I could trade for food.
Re: The “strategic reserve” exposes crypto as the scam it always was
#54Can 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.
I also own some and am very suspicious and a bit nervous that USA is getting in on it. Especially with the current administration.
Re: The “strategic reserve” exposes crypto as the scam it always was
#55Earlier quoted context omitted.
How are you defining value here?
Everything that hodls it's desirability even after a grid-down scenario.
In such a scenario you wouldn't be able to use fiat either. Guns and food would be of greatest value. Maybe we should just reserve guns and ammo?
Re: The “strategic reserve” exposes crypto as the scam it always was
#56Earlier quoted context omitted.
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.
And completely worthless in the event of war with attacks on power grids electronics etc. Gold on the other hand, I could trade for food.
If you are at a war where your whole electric grid and internet and SMS are completely down, you have much bigger problems than currency not working.
It means your bank accounts are gone, your credit cards are gone.
And how are you actually going to use gold as currency? Walk into a shop and shave off some gold at the checkout? And how will the store owner authenticate that it's actually gold?
Bullets will be a better currency than gold in that scenario.
Re: The “strategic reserve” exposes crypto as the scam it always was
#57Earlier quoted context omitted.
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.
And completely worthless in the event of war with attacks on power grids electronics etc. Gold on the other hand, I could trade for food.
Gold is similarly useless when it's heavy and hard to move. There is little chance of that, and Bitcoin offers advantages in ease of transfer, transparency of transactions, and lack of government interference.
Re: The “strategic reserve” exposes crypto as the scam it always was
#58We are coming to the end of the era where you could avoid major exposure to crypto speculation by simply not "investing" in it. When the government and major banks and top S&P500 companies are putting their money in crypto, just imagine the damage the next bubble pop will inevitably cause.
I have a theory that the volatility we have seen in crypto historically is due to the influence that speculators have in the price of the asset given the % of speculator vs non-speculator money sunk into BTC
As more and more "non-speculator" money enters BTC, the swings in the price will decrease. I see the "rainbow chart" as a backing to this theory. It shows how the price has been slowly settling . In 25 years we should have a very stable deflating BTC price.
Re: The “strategic reserve” exposes crypto as the scam it always was
#59Earlier quoted context omitted.
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.
All currency is made up, and even physical reserves (gold) have very little intrinsic value. Bitcoin is just another one.
Re: The “strategic reserve” exposes crypto as the scam it always was
#60Well, somebody has to HODL the bag at the end. Why not the taxpayers?
Better yet, why not AMERICAN tax payers. I (non American) would be extremely happy for trump to pump BTC price so that I can sell my crypto at a 50x win. Thanks !