I can’t think of any. The current oil reserve is supposed to be used in the case of another oil embargo. But its actual use is to lower gas prices when the administration in power needs a political win.
I actually think the purpose of a Bitcoin reserve is to temporarily increase the price so tech-bros (re: Elon) can sell at a massive profit. Then buy back at a much lower price. It’s just a way to indirectly transfer federal dollars into administration pockets.
I can’t find any reason for the government to buy crypto and hold it in reserve.
Nope, it’s just a pump.
I would bet it’s a way to send money to Russia.
Why not both?
Well it’s using one to do the other, so yes
Short version: No.
Long version: Nooooooo.
Polite answer: No.
Impolite answer: Fuck no!
“I actually think the purpose of a Bitcoin reserve is to temporarily increase the price so tech-bros (re: Elon) can sell at a massive profit. Then buy back at a much lower price. It’s just a way to indirectly transfer federal dollars into administration pockets.”
This is the way. It’s the only reason they’d do it.
I seriously doubt BRICS has anything to do with Bitcoin, but the US is absolutely concerned about losing the status of world currency. It’s literally how we survive while running a massive deficit. When the rest of the world finds a way to do business without the US getting its cut we’re going to be in deep shit.
That’s exactly what the plan is. They’re funneling themselves government money, but in a way that’s less traceable
It’s not “less traceable”, bitcoin is a public ledger, literally every transaction is documented on the blockchain for anyone and the IRS to see.
… Less traceable in that the price of the coin going up and them cashing out isn’t a direct line from the government coffers to their pocket.
I’m aware it’s a public ledger.
Yes, it’s going to make some people very rich.
Ohh, you mean to the country as a whole? No.
The idealism Bitcoin was allegedly created on is long dead.
2010: We can have a currency that the government can’t manipulate!
2024:…
Does the US government control Bitcoin? Can it create new Bitcoins?
Are bad faith questions asked in bad faith?
People seem to think “bad faith” refers to any kind of rhetorical method other than explicit declaration these days, and that sucks.
they can pump the price by buying it
They can do so for gold as well.
Sure. I think you’re missing the point that it was once sold as something the government can’t manipulate or trace. It is more traceable than practically any other currency (besides maybe your credit card) and governments are getting involved. Nothing else was sold on the idea bitcoin was sold on.
Gold was sold that way. As a currency that’s more independent of government control.
It lets those with bitcoins cash out and leaves the taxpayer holding their bags. That’s it.
The only real benefit I can see would be to have the ability to suddenly crash the market on demand. This might be an interesting way to temporarily disrupt states trying to evade sanctions with crypto, but probably not a great investment on the $ to impact scale.
It is the same reason why the USA still holds gold and silver even through they aren’t pegged to the dollar, it is an asset class which could be useful in the future.
You can make that argument in 5000 years. As of today, it’s still equivalent to MtG cards.
So what you’re saying is we need a strategic MtG card reserve.
I heard there are about 70 Black Lotuses missing. Some people think that’s what the drones over New Jersey are looking for.
A lot of countries keep a reserve of Euros, which is a fiat currency not tied to a single country and only came into being about 25 years ago.
Currency is like Tinkerbell, it only lives through belief in it. Right now, enough people believe in Bitcoin being a currency and that belief doesn’t seem to be going away as long as the Internet still exists.
The issue is that relative to gold or silver, Bitcoin is very volatile. A crashing bitcoin could endanger the reserve, forcing the government to double down, making the volatile nature a bigger issue.
Yes gold is somewhat volatile but compared to Bitcoin, it is super stable. And ofc gold and silver are real resources that you can do for their physical properties.
Price support can be a reason to create a reserve, but it isn’t the only reason. Most countries don’t plan their good and silver purchases based on trying to meet a value represented in currency.
No, Please tell me it’s not in Elon playbook ?
US money is incredibly strong, so US$ is way more interesting.
15 years after it’s creation the bitcoin failed to meet the expectation of being a usable money or even “way to pay”
It can’t process 1/100th of what visa does in a day, let alone the other card processors on top of it
Just the rumor of it alone benefits HODLers, and Trump has HODLers who donated to his election campaign.
For America? I can’t think of any - being a global superpower, they have endless other better ways to do everything they might need it for.
For the rest of us, easier darknet drugs, I guess. It makes it a lot harder to ban crypto.
I actually think the purpose of a Bitcoin reserve is to temporarily increase the price so tech-bros (re: Elon) can sell at a massive profit. Then buy back at a much lower price. It’s just a way to indirectly transfer federal dollars into administration pockets.
I mean, I guess, but that actually gives them more credit than I think they deserve for being smart. I think they’re just bringing their bullshit hype with them into office.
America making big play for World’s first Fourth World country. All the sci-fi authors got it wrong thinking the global corps would turn developing countries into vassal states .
Considering that the US Mint can literally print money, I can’t think of any reason either. I guess it won’t affect inflation as much, but still mass selling it will increase the money supply available to the government.
I don’t think there is a good reason for anyone to buy Bitcoin, let alone the US government.
BITCOIN DROPS TO ZERO VALUE
“It’s all so obvious in retrospect” says investor.
This vice article gets into some technical reasons why, although appearances can, and often do, operate independently of incentive and benefit.
