jeffwDonald Trump Backs ‘Strategic Bitcoin Stockpile’ in Speech to Crypto Faithful
wolf_2202So the federal government will hold a substantial amount of Bitcoin? Presumably by the Treasury? Who will make policy decisions and regulations about how the bitcoin can be held and distributed across the government? And this will be different than our current system because the money is in the computer now?
With USD, the government can print as much of it as they want. With BTC, nobody has that ability. What this means is that if you have USD as a result of your labor, someone else can print as much as they want, which robs you of your labor. Wealthy people know this very well, so they hold their value in businesses or real estate or other things that only the wealthy have access to, but absolutely not USD or other fiat currencies. Anyone can hold their labor in BTC, and nobody, not even the government, can print it privately to rob you of your value.
That alone is enough to make it an excellent currency, but it goes way beyond that. Anyone can send any amount of BTC to anyone else in the world instantly for almost no fee. BTC can be divided down as small as desired, making it useful for many things that USD isn’t. The list goes on from there. This is why, a decade ago, when people were ridiculing btc as never being worth “real” money, so many intelligent people were able to predict just how useful and popular it would become.
This is one of the most ignorant bonerjams for crypto I think I’ve ever read. What you’re saying is why a government would want crypto…from your own perspective.
Governments have a Treasury and print currency for a reason, whether you like that or think it’s fair or not. One surefire way to fuck up control of your own currency system is putting it on a system with public accounting and access. Never going to happen. If anything, they would make their own digital currency, which then nobody will use for obvious reasons.
You just explained emphatically why no country will ever want to hold gold. The US holds 19% of the world’s gold. Maybe you want to reconsider your stance.
Nobody is going to hold crypto over gold. I don’t even understand where you’re coming from on that one.
Put it this way, crypto has no use on this planet except in the crypto bro hemisphere because:
- no government would ever allow their transactions to be tracked
- no government would ever allow their Treasury transactions to live on a blockchain
- the US Dollar is backed by gold and silver
- Crypto only works in the here and no. Say there is a nuclear war that wipes out half the planet. Crypto ain’t surviving that.
If you’re of the frame of mind that crypto in any way shape or form works “all the time”, you’ve been in the game too long and have lost perspective. It works solely for individuals in the here and now of this very specific point on time on our planet, and that’s about it.
Yeah, heard it all before. They said nobody would ever give real money for internet points. They were wrong. They said a bitcoin would never be worth a dollar. They were wrong. They said no government would ever acknowledge bitcoin. They were wrong. They said no US government would ever accept bitcoin for taxes. They were wrong. They said no government would ever make it a national currency. They were wrong. They said bitcoin will never be worth 10,000 USD. They were wrong. But sure, I’m sure you are positive it will never go any further, that governments would use it as a reserve currency. I’m sure you’re accurately calling the next line.
If half the world is nuked to hell, then gold or special paper isn’t going to buy you bread either.
Only one way to find out who’s right, the people who have consistently been right for over a decade or the people who have consistently been wrong. You’re free to place your bets wherever you choose. If you prefer your value to disintegrate by inflation to save your fragile ego, then more power to you, it doesn’t change what’s happening in the slightest. Upcoming generations can see it clearly, you can be the elder stuck in the past or the one that embraces the future. The only one that it affects is you. Your choice.
Being wrong in the trajectory or worth of something is one. Knowing the limitations and real-world applications of it is another. You still can’t go to any store and use crypto, can’t use it offline, can’t trade it offline, and can’t store it offline (don’t get me started with hardware wallets, the chain is still online). Governments would never use it for this reason. Trading something online because you can catch profits in its market is something done with produce. It’s no different than any other profit scheme in a tradable good whose value is determined by what people will pay for it.
As far as El Salvador…oof. How’s that going for them? Not so well.
It’s going fantastic for El Salvador, I don’t know why you would think differently. It is hilarious hearing someone say you can’t use btc in the real world. I use it for Uber, airbnb, groceries, amazon, flights, restaurants, and way more. I think you are imagining the state of bitcoin at least 7 or 8 years ago, things have changed tremendously. The largest retail stores in Japan accept it directly. Many of the largest stores across Europe take it. There are countless resteraunts all over the world taking it directly. There are literally thousands of atms across Europe that will exchange it for cash. There are many 2nd world countries that use it regularly across Africa and South East Asia, South America, the list goes on and on. Your information really truly is way outdated. The future got here long ago, but I guess there are still bubbles of people completely oblivious.
Stagnant economy, and global trade down as GDP is also reducing: reuters.com/…/short-cash-el-salvador-doubles-down…
Bitcoin solves no problems here. Same issues as any currency.
Regular people say the “crypto dream” doesn’t work as advertised:
reddit.com/…/just_got_back_from_el_salvador_thoug…
Every dip in the market destroys net worth:
The currency doesn’t affect inflation? If every day the number of usd doubles, would that increase inflation, decrease it, or keep the value the same? That is extreme, but it should really clear things up for you.
You are right that if there are less oranges and the same demand, then oranges will go up in price. Now apply that same logic to the currency itself. If there is more of a currency and not more demand for it, should the value of that currency go up or down?
This really isn’t complicated economics, I guarantee that if you crack open any intro to economics textbook, you will have your current understanding completely annihilated.
Responded elsewhere, but again, this is called devaluation.
Bitcoin prevents the arbitrary creation of new currency by a single powerful entity. I don’t know who told you that creating tons of usd can’t affect inflation, but you literally will find no economist claiming this. This isn’t in the slightest a disputed claim. It seems like you’ve come into economics through some sort of anti-crypto mindset, and now you just assume that anything you heard from a “cryptobro” must be the opposite of the truth. Just take a sec to think about how people who are always wrong have created the 9th most valuable asset in the history of the world. Maybe your armchair hunches may need an adjustment.
Printing currency devalues it…that’s how that works. If you’re unfamiliar with the concept, and don’t want a boring read about it, read on how it’s been used in espionage.
My point is that (read this carefully): absolutely no government on this planet with any substantial worth would EVER give up control of its Treasury. Thinking that governments are just looking for a better system is wrong. That’s not what they need to manipulate global currency inflections and to control actual valuation of flowing currency in their favor. You’re assuming they are looking for a solution to economic fluctuations, which is also wrong. Bitcoin solves none of this just by existing.
I think you’re just too far gone, friend. You don’t seem to understand the basic functions of an economy, and are focused on the crypto line of “we were right!”. What Bitcoin holders were right about was making a digital transaction worth something that others would pay for, reasoning aside. It could have also not worked out that way as well, just like practically 99.99999% of all other crypto currencies that launched. It’s only worth what people are willing to pay for it, which is something the crypto faithful don’t like bringing up. They also don’t like bringing up that vision of Bitcoin’s usefulness has still not come to pass. Everyday retailers aren’t using it, the majority of people aren’t walking around transferring BTC in offline wallets, and you still can’t directly trade it for currency without a transient middleman who is backing the transaction with their own hard currency (Coin banks and what it).
So the cryptobro crowd was right about the valuation, which is largely bolstered by their own trading, and wrong about everything. It’s still just worth whatever people are willing to pay for it.
