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

submitted 22 hours ago by DemBoSain@midwest.social to c/asklemmy@lemmy.ml

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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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[–] deathbird@mander.xyz 2 points 9 hours ago

Bitcoin isn't gold or oil.

Gold is a thing. It has some utility. You can make other things with it. You can reprocess it into different things.

Oil is a thing. It can be burned as fuel, or made into other things.

Bitcoin is a ledger protocol with limited entries. It is good for peer-to-peer transfer of cash, and speculation. The speculation aspect is a pyramid scheme though, as it's only backed by the hope that people keep paying more for the ledger spaces, which undermines its function as a medium of exchange, and is unlikely to last as alternative ledgers are abundant, including those that are better suited for private exchange like Monero or ZCash.

Lacking intrinsic value, the only reason to create a strategic reserve of Bitcoin is like that of any other foreign currency. So, market manipulation? A lack of stability in your own currency (but Bitcoin is mostly USD backed)? International exchange (but USD and Euros are better)?

There will never be a default on US debt unless it's by choice. US debt is in US dollars, which the US makes. There will be inflation. Goods may end up being exchanged in another national or international currency someday. It won't be Bitcoin.