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Are there any honest benefits to a Federal Strategic Bitcoin Reserve? (midwest.social)

submitted 5 days ago by DemBoSain@midwest.social to c/asklemmy@lemmy.ml

66 comments fedilink hide all child comments

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.

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[–] humanspiral@lemmy.ca 1 points 2 days ago

Bitcoin is “Thanks for the $97,430.23 bro trust me bro someone will give you that much or more for that ledger entry in money, goods, or services bro I swear bro because it’s scarce bro”.

You accept $20 because you are confident it is worth $20 tomorrow. You put it in a bank hoping the interest will cover inflationary depreciation, and hoping the bank will give it back when you ask for it. Btc does not have that 2nd risk, but you can still accept it as payment and sell it on an exchange shortly after, if you trust bank IOUs more.

My inflationary dollars are far more in demand.

You can't buy beer with gold or amazon stock, though can with bitcoin, even if cash is easier. Investments are a separate market, and they all have the buyer's hope of higher future value.