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Trump’s Crypto Reserve Is Really Happening (www.theatlantic.com)

submitted 1 day ago by [email protected] to c/[email protected]

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Great. Just great.

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[–] [email protected] 5 points 5 hours ago* (last edited 2 hours ago)

Same misunderstandings as usual:

crypto transactions can be done anonymously

Except for a couple "anonymous coins", no they can't.
KYC+Blockchain = full traceability.

asset with little proven real-world application that regular old U.S. dollars can’t already account for

Close. Consider the following scenario:

USD is a US government IOU, same as every other fiat currency.
Fiat money's value depends on the trust in the credit it represents.
Trump&co are destroying USA's trust worldwide.
External countries like China, have huge amounts of US credit... have given a lot to the US in exchange for a pinky swear.
The US keeps emitting USD credit by manipulating interest rates, hoping to attract investors and greed/trust.

But what if the US were to default on its obligations instead, break trade agreements, break defense agreements... what would be a safe store of value then?

Gold, will say some... but there is not enough gold to go around to represent all the credit currently tied in money, that was the reason to abandon the gold standard in the first place.
Others will pick the Yuan, after all it's the second largest economy GDP PPP... but really? Does anyone trust China? I doubt so.
Euro seems much more trustworthy, but it will take long after Trump has utterly trashed the US economy, for the US to recognize defeat.

That leaves little more than fantasy money, with the stablest of them being: Bitcoin.