Trump’s Crypto Reserve Is Really Happening
Trump’s Crypto Reserve Is Really Happening
www.theatlantic.com
Trump’s Crypto Reserve Is Really Happening
Great. Just great.
53 comments
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as if forcing everyones retirement into the practically unregulated stock market wasnt already the worst gamble in american history... lets make our reserve even less stable.
awesome. super genius moves here. congress isnt asleep at the wheel, theyre comatose. they might as well not exist.
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Congress has made it explicitly clear that they serve to rubber stamp anything and everything Trump signs as an EO. They work for and serve the executive office only
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If it's any comfort, he's merely planning to take all of the crypto the government has confiscated and merely put it all into one account and do nothing with it.
It's like taking all the small change from the various couches of your house and putting it all into one water jug and forgetting that it's in the corner.
So basically useless, like the half (that isn't destructive) of stuff he does.
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I mean, have you seen how old most of them are?
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The government as bagholder of last resort
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Gonna be the most epic rugpull of all time.
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In 3... 2...1...
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So what's this mean?
He'll take US Tax Dollars and put them in Crypto?
Sounds like a great way to bankrupt your entire country back into the stone age.
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No. In fact it explicitly doesn’t allow that.
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They're using a bullshit slight-of-hand to claim they're not spending government money on it.
They're planning on using coins seized from criminals. But normally those coins would be sold, and the proceeds from that sale would go to the US Treasury. Instead, they're going to seize them and just hold onto them.
It's the same thing. Whether you spend government money to purchase coins and hold them, or you simply hold seize coins, both of these options result in the same increase in the US national debt.
And ultimately it is simply a method of propping up the crypto bubble. They want the US government to be the ultimate "diamond hands" hoarder of crypto. Every time some dark web drug site gets shut down, any coins they hold will be thrown into a government vault, never to be seen again. This effectively removes them from circulation, decreasing the supply, and forcing crypto prices higher. This is taking billions from the Treasury to prop up the crypto market.
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So he's going to do the same thing he did to his fanboys to the government? Oh good. Can we impeach this guy yet?
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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.
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I don't think Bitcoin qualifies as a "safe store of value" when it fluctuates like hell on a day-to-day basis and transferring it anywhere for any reason costs exorbitant amounts of money. Much as you or I don't trust China, I think the powerhouse of an economy that it has will make it awfully enticing for investment orgs, and I don't think the U.S. will have to "recognize defeat" for the Euro to replace the dollar, either. If the dollar tanks, it tanks.
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There is no "safe" store of value, it always depends on demand; there is no single item with a constant demand. One would think that air, water, food, housing, etc. should be always in demand... but reality is showing how people are willing to sacrifice those for something else all the time.
Bitcoin transfers cost pennies on the Lightning Network. An argument can be made, that SEPA transfers cost exactly 0... also an argument can be made, that SEPA didn't go all the way down to 0, until cheap crypto transfers became a thing. But SEPA is an Euro thing.
China, I think the powerhouse of an economy that it has will make it awfully enticing for investment orgs
China has a 100% intervened market, there is exactly 0% security that any investment won't go to 0 in an instant, by decree. There is a reason why Chinese people invested 30% of GDP in the housing market, allowing scammers to build ghost towns they never planned on completing... and then it all went crashing down.
The US sees the Euro as a competitor of the Dollar; for the US to buy a strategic reserve of EUR, it would definitely mean recognizing defeat.
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There may not be enough gold to go around, but there’s enough gold for me :)
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He is going to kill the USD, just wait and see.
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That crypto reserve is a load of old cobblers if I ever saw one. The government is not buying or planning or whatever… they just don’t do anything with the stack they already have, thanks to Biden I guess? And I guess they won’t be chasing many new frauds and rug pullers anymore, with all the crypto broligarch shit they are pulling.
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can't wait until north korea hacks into it and steals everything.
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"Really happening" means less when it's only his zombies and Russians that would ever use such a thing.
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You know that's not really accurate, and amusingly so?
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53 comments