Why are Bitcoiners celebrating the creation of a #Bitcoin reserve by the government? They will use a Bitcoin they aquire to backstop the crumbling fiat dollar system.
We want the fiat system to fall not be held up perpetually by Bitcoin. The creation of a Bitcoin reserve is a net negative for Bitcoin in general. Just say no to orange pilling politicians.
Bitcoin is for everyone. You, your friends, and your enemies alike. A bitcoin reserve could begin to bring sanity back into government. If you think that the global financial system failing in sudden and catastrophic fashion would be a good thing, then you are naive.
Or it could super charge their already out of control spending. It’s basically an unlimited credit card… the more it goes up in fiat dollar terms the more they can use to borrow against and get dollars.
no it can't supercharge them. Their out of control spending is predicated on currency debasement. The US government is the largest net consumer on Earth. Bitcoin rewards net producers and punishes net consumers.
Without fiscal discipline the US will be unable to hold bitcoin because it's credit globally will continue to decline. Without the sale of US treasuries the US is screwed.
If the US government openly adopted a bitcoin reserve it would be a green light for every government on Earth to do it. .
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.
How does the US government creating a reserve benefit citizens? I just don’t see the benefit to the government owning #BTC
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.
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.
Bitcoin is creating a strategic Schelling point. Politicians don't need to be orange pilled. A Schelling point in game theory is a solution that is chosen by default without any communication necessary.
Like it or not this is inevitable.
Yea the solution is to gather a large supply for the government to benefit itself and not the people. Bitcoin is for the people and not government in my opinion. This is a bad move.
Bitcoin is a physical-power-based resource control structure that is creating the largest physical-power-based dominance hierarchy our planet has ever seen. The bitcoin protocol is perfectly egalitarian meaning all entities get to participate. Governments have access to lots of power (watts), and will naturally be higher in the dominance hierarchy. This is completely natural and unavoidable.
Doesn’t mean we as average citizens have to advocate for governments to actively buy up the supply. This takes #BTC out of the hands of individuals.
As a worst case scenario it attempts to recreate the petrodollar. Eventually that will come to an end, as I believe the good money (bitcoin) will push out the bad. Once bitcoin becomes the global money, less and less people/nations will want dollars. The US would have to be a net producer to hold on to their bitcoin reserve.
Yea, I don't see the issue. If the government wants to buy bitcoin as a full reserve for dollars I'm all for that. Not all government money is fiat money. The US dollar used to say 'redeemable in gold'
