I was really intrigued by this idea for Bitbonds so I wrote about it for nostr:npub1fpcd25q2zg09rp65fglxuhp0acws5qlphpg88un7mdcskygdvgyqfv4sld. I think it’s a very smart mechanism for funding the U.S. government (including critical welfare programs), adding to our Bitcoin reserves, and putting reliable savings in American families pockets ⬇️
nostr:note1sp35lc96zrdfy4yjmk98hqvlzhzgeswh8chrfuw46clef3zpjkxscrzpg2
I think Bitbonds will be the default bond mechanism in the future. The US will pave the way.
In the whole strategic reserve, and now bitbond discussion, there seems to be some kind of implicit "have your cake and eat it too" idea with regards to being able to pay off the debt with bitcoin...
I can't quite articulate why, but I can't help but feel like there's some flaw in this argument. Like Baron Muchausen pulling himself out of the swamp by lifting his own bootstraps...
So I guess what we're betting on here is that the (dollar-denominated) value of bitcoin will rise faster than inflation, and then we can pay off the debt with that? Should we expect that to even take place?
I think the main thing here is not that it pays off the debt completely, but that it brings the interest rate to a more manageable expense, and increases our asset-to-debt ratio
