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The “strategic reserve” exposes crypto as the scam it always was
61–70 of 149 posts
Re: The “strategic reserve” exposes crypto as the scam it always was
#62Earlier 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…
That's the best argument I've heard, thank you. I disagree with aspects of this argument but it at least makes some sense to me.
Absolute sovereignty is the important detail that brings the strategic reserve argument into complete focus. There are many types of wealth but none of them offer the level of freedom against censorship and external interference that bitcoin does. In an increasingly multipolar world bitcoin offers the greatest degree of self sovereignty for individuals and nations alike.
Re: The “strategic reserve” exposes crypto as the scam it always was
#63Earlier 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.
All currency is made up, and even physical reserves (gold) have very little intrinsic value. Bitcoin is just another one.
Yes, this is true. The federal government already has the US dollar. It does not need "another one". Why would it?
Re: The “strategic reserve” exposes crypto as the scam it always was
#64We 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 s…
Exactly. People forget that btc is still in price discovery. A brand new global monetary standard isn't priced by edict, the market must figure it out. Of course it's volatile, if it were smooth/predictable then this predictability would be exploited by traders and it would cease being predictable.
Re: The “strategic reserve” exposes crypto as the scam it always was
#65Can 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.
Isn’t that provided by satoshi, the dead and those who lost their hard drives?
Re: The “strategic reserve” exposes crypto as the scam it always was
#66While 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.
Intrinsic vale is not a prerequisite for utility. USD has no intrinsic value. Yes, you can pay your taxes with it. That is a contingent value. The only intrinsic value of crypto is that it can not be unilaterally inflated away, and can be difficult to digitally seize. In this respect it is similar to gold. It lacks the physical uses of gold, but is easier to transport. No, I don't think the US government should inves…
USD is backed by the US economy and a significant portion of global trade.
BTC is backed by hopes, dreams and market speculation.
Re: The “strategic reserve” exposes crypto as the scam it always was
#67Can 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…
Hi, crypto steelman here. I have two answers:
The first is the reality answer: the CEOs of all these companies (SOL, XRP, and ADA specifically) are directly involved and meeting with Trump officials and senators in order draft upcoming crypto legislation as, as told by ADA's creator[1]. BTC and ETH aren't included here, but they are the two largest and most impactful, recognizable cryptocurrencies already, kind of would be foolish to exclude them.
Secondly, the reason I don't think this is just "pumping insider's bags": from the perspective of a crypto-optimist, these are paradigm shifting technologies that have the potential to revolutionize global financial systems (at minimum). The "strategy" is coming from betting on this being true, and thus these assets will have high(er) value, use, and importance, in the near future. I also don't think the reserve is going to be as large as people might get the impression. Anything in bllions sounds extremely unrealistic.
[1]: https://m.youtube.com/watch?v=xgGTW_GK9vM I highly suggest watching this video. He gives a quite sobering and optimistic take of the situation.
Re: The “strategic reserve” exposes crypto as the scam it always was
#68We 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 s…
But this is just more "speculator" money... if I'm being pessimistic, this is an outright scam play to make the early speculators filthy rich by defrauding the US public out of their tax dollars.
The whole freaking problem is that crypto turns out to suck absolute cock as a real method of paying for things (Said as someone who has actually paid for items with bitcoin, incl on the OG silk road...)
How many of these folks investing in bitcoin have EVER bought a physical item at a physical store with it? Hell, even online stores... how many of these people are actually using these things as currency, instead of as pure speculation plays?
The answer is a resounding "Almost no one".
They're a complete crap way to pay for anything that's not literally illegal to buy.
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And there is no utility to the coins unless you're either buying things with them, or speculating that you can exchange them for more of a usable currency at a later time. Period.
Re: The “strategic reserve” exposes crypto as the scam it always was
#69It's my understanding that the prevailing pro-crypto view is that it's a store of value not a payment system.
That's the view Bitcoin took, after they gave up on the kind of scaling they'd need to be a practical payment system. Ethereum is working hard on scaling beyond 100K tx/sec:
Re: The “strategic reserve” exposes crypto as the scam it always was
#70Earlier quoted context omitted.
I dunno, can you fill your tank up with bitcoin when you need to get to work?
Do EMPs destroy the ability to use and exchange oil?
This is beside the point but they actually might. Take out the electric grid, and most other stuff stops working, including gas pumps and refineries.