this post was submitted on 17 Dec 2024
118 points (97.6% liked)

Asklemmy

44149 readers
1357 users here now

A loosely moderated place to ask open-ended questions

Search asklemmy πŸ”

If your post meets the following criteria, it's welcome here!

  1. Open-ended question
  2. Not offensive: at this point, we do not have the bandwidth to moderate overtly political discussions. Assume best intent and be excellent to each other.
  3. Not regarding using or support for Lemmy: context, see the list of support communities and tools for finding communities below
  4. Not ad nauseam inducing: please make sure it is a question that would be new to most members
  5. An actual topic of discussion

Looking for support?

Looking for a community?

~Icon~ ~by~ ~@Double_[email protected]~

founded 5 years ago
MODERATORS
 

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.

top 50 comments
sorted by: hot top controversial new old
[–] [email protected] 98 points 5 days ago (1 children)
[–] [email protected] 11 points 5 days ago (1 children)

I would bet it’s a way to send money to Russia.

[–] [email protected] 8 points 5 days ago (1 children)
[–] [email protected] 3 points 5 days ago

Well it’s using one to do the other, so yes

[–] [email protected] 64 points 5 days ago (1 children)

Short version: No.

Long version: Nooooooo.

[–] [email protected] 6 points 5 days ago

Polite answer: No.

Impolite answer: Fuck no!

[–] [email protected] 58 points 5 days ago (1 children)

"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.

[–] [email protected] 16 points 5 days ago (1 children)

That's exactly what the plan is. They're funneling themselves government money, but in a way that's less traceable

[–] [email protected] 4 points 5 days ago (1 children)

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.

[–] [email protected] 9 points 5 days ago* (last edited 5 days ago)

... 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.

[–] [email protected] 39 points 5 days ago

Yes, it's going to make some people very rich.

Ohh, you mean to the country as a whole? No.

[–] [email protected] 40 points 5 days ago (1 children)

The idealism Bitcoin was allegedly created on is long dead.

[–] [email protected] 41 points 5 days ago (7 children)

2010: We can have a currency that the government can't manipulate!

2024:...

load more comments (7 replies)
[–] [email protected] 32 points 5 days ago

It lets those with bitcoins cash out and leaves the taxpayer holding their bags. That’s it.

[–] [email protected] 13 points 5 days ago

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.

[–] HobbitFoot 18 points 5 days ago (2 children)

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.

[–] [email protected] 6 points 5 days ago (2 children)

You can make that argument in 5000 years. As of today, it's still equivalent to MtG cards.

[–] [email protected] 22 points 5 days ago (1 children)

So what you're saying is we need a strategic MtG card reserve.

[–] [email protected] 1 points 3 days ago

I heard there are about 70 Black Lotuses missing. Some people think that’s what the drones over New Jersey are looking for.

[–] HobbitFoot 7 points 5 days ago

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.

[–] [email protected] 2 points 4 days ago (1 children)

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.

[–] HobbitFoot 3 points 4 days ago

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.

[–] [email protected] 3 points 3 days ago

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.

[–] [email protected] 16 points 5 days ago (1 children)

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"

[–] [email protected] 13 points 5 days ago

It can’t process 1/100th of what visa does in a day, let alone the other card processors on top of it

[–] [email protected] 3 points 3 days ago

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 .

[–] [email protected] 11 points 5 days ago

Just the rumor of it alone benefits HODLers, and Trump has HODLers who donated to his election campaign.

[–] [email protected] 12 points 5 days ago

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.

[–] [email protected] 8 points 5 days ago (1 children)

I don't think there is a good reason for anyone to buy Bitcoin, let alone the US government.

[–] [email protected] 1 points 3 days ago

BITCOIN DROPS TO ZERO VALUE

β€œIt’s all so obvious in retrospect” says investor.

[–] [email protected] 5 points 5 days ago

This vice article gets into some technical reasons why, although appearances can, and often do, operate independently of incentive and benefit.

[–] [email protected] 4 points 5 days ago (2 children)

Should there be a collapse of the US economy, or global markets stop using the dollar standard, or sanctions placed on US banks by other countries, a store of alternative currency is good to have.

[–] [email protected] 15 points 5 days ago

Oh yeah sure, Bitcoin will be worth a lot when the US economy collapses. lol

[–] [email protected] 5 points 5 days ago (5 children)

Isn't that what gold is for? Does US still reserve gold? I seem to remember both James Bond and Die-Hard fighting to protect the gold reserve.

[–] [email protected] 7 points 5 days ago* (last edited 5 days ago) (3 children)

If the US reserves gold, why do they also reserve silver? Why do they reserve grain, oil, steel, cheese, or foreign currencies?

Because it's dumb to put all your eggs in one basket and the more you diversify, the safer it is. Like it or not, Bitcoin is an asset; and barring a global disaster that knocks out all electronics, it's unlikely to go away. It makes sense to have some and sit on it.

Will there come a time when everything falls apart and the only way to trade with another power is with tons of wheels of cheese? Probably not, but if it does, the US is ready.

Will the same ever happen with Bitcoin? Probably not, but if it does, the US is ready.

load more comments (3 replies)
load more comments (4 replies)
[–] [email protected] 3 points 5 days ago

yeah you got it. I mean maybe in some alternate universe where energy overabundance is a real problem and we have to figure out how to get rid of excess because it causes explosions or something. then it would make sense.

load more comments
view more: next β€Ί