Nostr Web Client

What’s stopping them from printing dollars and buying #Bitcoin on the open market?

nothing is stopping them, other than the fact that it would accelerate their financial crisis. It would both increase inflation and drive global bitcoin adoption as a treasury reserve asset. The US wants the treasury reserve asset to be US treasuries, not bitcoin.

If the USD itself is not pegged to bitcoin then the destruction of the US bond market will continue. You cannot, as you said in your previous post, simply "borrow against your bitcoin". The US is spending 3 trillion a year. There is no way for them to somehow buy trillions of dollars worth of bitcoin and then simultaneously borrow against it in the amount of 10's of trillions of dollars.

Reply to this note

Please Login to reply.

Discussion

BTCrevolutionary 1y ago

How does the US government creating a reserve benefit citizens? I just don’t see the benefit to the government owning #BTC

BitcoinStu 1y ago

The government, when it's working properly, is a tool of the citizens. When the people lose control of their leaders, and thus their government, and bad people are in charge, the citizens suffer. In societies that have good leaders, people prosper.

The US government adoption a bitcoin standard would help everyone because it would accelerate bitcoin adoption globally.

Eventually all governments will adopt a bitcoin standard, it is inevitable unless bitcoin itself becomes compromised.

A government adoption a bitcoin standard also suggests there are forces within the government that are actually operating for the greater good of all those in the soceity.

BitcoinStu 1y ago

Bitcoin cannot be used as a bully stick to oppress the citizens of a society, unlike fiat can be used. If you use your bitcoin, that's it, it's gone.

Bitcoin only benefits net producers. It punishes net consumers. A government that has a bitcoin reserve will either become a net producer, globally, or will not hold it's bitcoin for long.

The US government cannot "borrow against it's bitcoin" to somehow gain power over other people and nations. It can only spend it's bitcoin.

You imagine that the US government will give it's strategic bitcoin reserve to china as a custodian, who will then lend the US dollars, and the US will be a net producer with those dollars and eventually pay off the loan and get their bitcoin back from China? That doesn't make sense.

If you are a net consumer bitcoin does you no good. But any government that buys bitcoin is good for global adoption. Especially the richest country on Earth.