Bitcoin strategic reserve

[kallend 2,107]

Well, it happened:

https://www.whitehouse.gov/presidential-actions/2025/03/establishment-of-the-strategic-bitcoin-reserveand-united-states-digital-asset-stockpile/

 

[nigel99 569]

What are the implications?

I’ve seen a few news articles but nothing explained the logic behind it or the risks

[kallend 2,107]

The whole thing just seems like a Monty Python sketch:

 

 

[dogyks 9]

3 hours ago, kallend said:

Well, it happened:

https://www.whitehouse.gov/presidential-actions/2025/03/establishment-of-the-strategic-bitcoin-reserveand-united-states-digital-asset-stockpile/

 

Crypto simply uses a different magic wand than fiat currency.

Actually, while fiat currency has zero inherent net worth, Bitcoin has negative inherent net worth.

I had the unfortunate experience of studying math for many years, which has denied me the joy of gambling.  I've never bought a lottery ticket, since the odds of winning are about the same either way.

[base698 20]

On 3/7/2025 at 6:36 AM, nigel99 said:

What are the implications?

I’ve seen a few news articles but nothing explained the logic behind it or the risks

Positive Implications of a Bitcoin Strategic Reserve

A Bitcoin strategic reserve could hedge against inflation and currency devaluation with its capped supply, offering the U.S. a diversified reserve asset while reducing reliance on dollar-dominated systems like SWIFT for geopolitical leverage. It might signal innovation, attracting blockchain businesses, tech talent, and investment to position the U.S. as a digital economy leader, potentially spurring financial sector growth through new products like Bitcoin-backed bonds. Additionally, speculative price appreciation could offset national debt, and government involvement might legitimize Bitcoin, encouraging broader adoption and fostering U.S.-based fintech ecosystems.

Negative Implications of a Bitcoin Strategic Reserve

A Bitcoin strategic reserve introduces significant risks, including Bitcoin’s volatility, which could destabilize national finances if prices crash, and cybersecurity threats from hacks targeting government-held assets, with stolen Bitcoin nearly unrecoverable. It might centralize control over a decentralized asset, eroding Bitcoin’s ethos and inviting regulatory burdens that favor large institutions over startups, while potentially straining international relations if other nations oppose or compete with their own digital currencies. Public backlash, political exploitation of failures, and global financial imbalances further complicate the gamble, especially without proven long-term stability.

[JoeWeber 2,836]

1 hour ago, base698 said:

Positive Implications of a Bitcoin Strategic Reserve

A Bitcoin strategic reserve could hedge against inflation and currency devaluation with its capped supply, offering the U.S. a diversified reserve asset while reducing reliance on dollar-dominated systems like SWIFT for geopolitical leverage. It might signal innovation, attracting blockchain businesses, tech talent, and investment to position the U.S. as a digital economy leader, potentially spurring financial sector growth through new products like Bitcoin-backed bonds. Additionally, speculative price appreciation could offset national debt, and government involvement might legitimize Bitcoin, encouraging broader adoption and fostering U.S.-based fintech ecosystems.

Negative Implications of a Bitcoin Strategic Reserve

A Bitcoin strategic reserve introduces significant risks, including Bitcoin’s volatility, which could destabilize national finances if prices crash, and cybersecurity threats from hacks targeting government-held assets, with stolen Bitcoin nearly unrecoverable. It might centralize control over a decentralized asset, eroding Bitcoin’s ethos and inviting regulatory burdens that favor large institutions over startups, while potentially straining international relations if other nations oppose or compete with their own digital currencies. Public backlash, political exploitation of failures, and global financial imbalances further complicate the gamble, especially without proven long-term stability.

And when it all goes to hell you can sell your Bitcoins on Etsy and eBay along with your Beanie Babies and Pet Rocks.

Edited March 8 by JoeWeber

[jakee 1,564]

5 hours ago, base698 said:

while reducing reliance on dollar-dominated systems like SWIFT for geopolitical leverage.

For the US, reducing global reliance on dollar dominated system sounds like a not positive thing...

[nigel99 569]

9 hours ago, base698 said:

Positive Implications of a Bitcoin Strategic Reserve

A Bitcoin strategic reserve could hedge against inflation and currency devaluation with its capped supply, offering the U.S. a diversified reserve asset while reducing reliance on dollar-dominated systems like SWIFT for geopolitical leverage. It might signal innovation, attracting blockchain businesses, tech talent, and investment to position the U.S. as a digital economy leader, potentially spurring financial sector growth through new products like Bitcoin-backed bonds. Additionally, speculative price appreciation could offset national debt, and government involvement might legitimize Bitcoin, encouraging broader adoption and fostering U.S.-based fintech ecosystems.

Negative Implications of a Bitcoin Strategic Reserve

A Bitcoin strategic reserve introduces significant risks, including Bitcoin’s volatility, which could destabilize national finances if prices crash, and cybersecurity threats from hacks targeting government-held assets, with stolen Bitcoin nearly unrecoverable. It might centralize control over a decentralized asset, eroding Bitcoin’s ethos and inviting regulatory burdens that favor large institutions over startups, while potentially straining international relations if other nations oppose or compete with their own digital currencies. Public backlash, political exploitation of failures, and global financial imbalances further complicate the gamble, especially without proven long-term stability.

Thanks 

[base698 20]

21 hours ago, jakee said:

For the US, reducing global reliance on dollar dominated system sounds like a not positive thing...

Unless the dollar and systems regulating it are already cooked and powers abroad aren't onboarding into our control.  The hope is Bitcoin based financial systems founded in the US could be under the US thumb.

[dogyks 9]

15 minutes ago, base698 said:

Unless the dollar and systems regulating it are already cooked and powers abroad aren't onboarding into our control.  The hope is Bitcoin based financial systems founded in the US could be under the US thumb.

When Evner Hoxa was no longer in charge Albanians went on a buying spree, investing in Ponzi schemes.  Apparently, when one failed there was then an intense search for another.

No less than Bernie Madoff pointed out that the U.S. economy was a Ponzi scheme, and we're following the Albanian paradigm of seeking a replacement Ponzi scheme.

I am unimpressed.

[jakee 1,564]

16 hours ago, base698 said:

Unless the dollar and systems regulating it are already cooked and powers abroad aren't onboarding into our control.  The hope is Bitcoin based financial systems founded in the US could be under the US thumb.

Well I wasn't convinced before, but I can't see what could possibly go wrong with a financial plan purely based on 'hope'.

[nigel99 569]

6 minutes ago, jakee said:

Well I wasn't convinced before, but I can't see what could possibly go wrong with a financial plan purely based on 'hope'.

Well the US is in its way to being a theocracy. Surprised they aren’t using thoughts and prayers, or Jesus parables of investing wisely