Trump’s call for a bitcoin strategic reserve is a very bad idea

[larry_vw_1955]

Trump’s call for a bitcoin strategic reserve is a very bad idea https://www.ft.com/content/e0e5e286-1885-4d72-8b65-3333069815c1

"Bitcoin is not going to make America great. What will help this country continue to be great is getting our debt and deficits under our control."


This was a very interesting article explaining why bitcoin can't replace the dollar! Required reading. To anyone that thinks bitcoin get the government out of debt just NO. They need to be able to print more money.




   

[pakhitheboss]

This not the first time he has give such a statement. To me it seems he is trying to play safe and there is nothing wrong in doing it before the Presidential election. Last time he suggested in selling the Bitcoins that the US holds to pay off the debt.

"Who knows? Maybe we'll pay off our 35 trillion dollars, hand them a little crypto check, right?" Trump suggested to Fox Business' Maria Bartiromo in an interview. "We'll hand them a little bitcoin and wipe out our $35 trillion."

Source

He is only trying to win the election and for that he will do everything to satisfy both parties. By both the parties here I meant crypto supporters and fiat supporters.

[Charles-Tim]

Gold has been in many countries reserves since many decades ago but the United States dollars remain strong. Despite how BRICS is not a threat to US dollar presently, BRICS should be considered as threat than bitcoin. I do not see bitcoin as a threat at all.

I only see this as a wrong speculation that can only be used to deceive the masses.

[Marvell1]

I support him because I believe he will have a more open policy towards the crypto industry, but I have to admit that some of his statements are quite silly and using bitcoin as a national strategic reserve is one of them. I support him but that doesn't mean I will completely believe in what he claims and promises.  

Due to the volatility of bitcoin, using it as a strategic reserve is actually a bad idea. I believe this will never come to fruition, it will certainly face strong opposition and will not be passed by Congress even if he proposes it.

[Taskford]

Trump’s call for a bitcoin strategic reserve is a very bad idea https://www.ft.com/content/e0e5e286-1885-4d72-8b65-3333069815c1

"Bitcoin is not going to make America great. What will help this country continue to be great is getting our debt and deficits under our control."


This was a very interesting article explaining why bitcoin can't replace the dollar! Required reading. To anyone that thinks bitcoin get the government out of debt just NO. They need to be able to print more money.

Got surprise about this? Trump is known for this. For sure they would never think about bitcoin as good strategic reserve since they are afraid for its volatile feature. This people don't know how to deal with bitcoin that's why their confidence is to low that's why they always go to more safer asset. Usually they select gold since this is more stable and we can't expect that they immediately adapt bitcoin even if they have statement that US will be a crypto friendly country since they still think bitcoin is a risky asset.

Although this is still a interesting article since many people would question the intentions of Trump if he's for real on his statement regarding on his intention of crypto. But want to see more actions if he win so hopefully we will not get disappointed on his future action.

[pooya87]

Bitcoin promotion by the White House would chip away at the status of the dollar at a time when sentiment towards the currency is likely to be tested.

That is nonsense from someone who doesn't understand what Dollar is and how it became powerful.

Dollar is powerful because the US regime managed to scam the world into using it. First through the scam project called Bretton Woods and later as the world learned it is a scam they replaced it with the Petrodollar scam.
That is also the reason why dollar is losing its "dominance", since this was all a scam and the world learned it and they are abandoning it (aka the dedollarisation).

Bitcoin doesn't change any of that.

Money is more than...

The author seems to not understand the difference between money and currency. Dollar is not money, it is currency!

bought into the story that it was a democracy and that its capitalist, free-market economy made it the strongest in the world.

That's another nonsense. Those who bought into the story "illusion" did it because they were forced to do it. Europe and most of the world was destroyed after the second European War (aka WW2) while US was the only place intact and they forced their scam on the world. Then they kept the scam going by force, meaning for example if any country wanted to dedollarise the US regime bombed it back to stone age (eg. Libya).

[debt]

The main reason why the world is dumping the dollar is not the massive debt and the fact that US economy is now a Ponzi scheme. The main reason is because the US regime abused its power by stealing other countries' money. They've done it to so many countries that it scared the whole world. Now everyone is asking "what if the regime did the same to us as well". So they started looking for an alternative reserve currency and started dumping the dollar.

[mindrust]

It is probably a bad idea for the USD however it is excellent news for bitcoin holders. That would drive up the bitcoin prices to a million or much more probably. That way the US can pay up its national debt or a portion of it very easily. I think Trump was smart to declare his intent to make bitcoin a strategic reserve. The man is a genius.

Don't get surprised if Kabamala says the same thing next week since the stupid bitch copies Trump's every campaign move.

[asriloni]

That's crazy if you're still trusting Trump's statement. He was just pandering for the votes from the bitcoin/crypto bros to help him in the election. I see nothing more than it.

Trump knows many Americans own bitcoin.

Bitcoin as a strategy reserve sounds unreal. Although it's still possible to happen.

[Mpamaegbu]

That's crazy if you're still trusting Trump's statement.

A lot of people may treat Trump's word as a joke but those waving him aside should be in a hurry to remember that he's a successful businessman who knows his onions around finance and accounting. That should count for something. We may not fathom much from what's proposing now but that can still be something helpful for the US in the future, considering how the US has been buying Bitcoin for sometime now. Sometimes, what we think doesn't make sense end up making the most sense.

[larry_vw_1955]

That's crazy if you're still trusting Trump's statement. He was just pandering for the votes from the bitcoin/crypto bros to help him in the election.

I know that. I know he's not serious. he'll say anything to get a vote we all know that but that still doesn't mean bitcoin is going to be useful as some type of replacement for the us dollar. that could never happen. the government sometimes needs to print more money to fund different things that they deem necessary you can't do that with bitcoin so that automatically rules bitcoin out.

Bitcoin as a strategy reserve sounds unreal. Although it's still possible to happen.

it would be pointless.

[kro55]

That's crazy if you're still trusting Trump's statement. He was just pandering for the votes from the bitcoin/crypto bros to help him in the election. I see nothing more than it.

Trump knows many Americans own bitcoin.

Bitcoin as a strategy reserve sounds unreal. Although it's still possible to happen.

People are not as naive as you think, no one trusts Trump and no one will support Trump if they don't benefit if he wins. Crypto investors who voted for Trump are just betting for their own benefit, because if he is elected and actually supports crypto, the crypto industry will benefit greatly and crypto investors will be the ones who benefit the most. Everyone has their own reasons and calculations when voting for any candidate, no one is naive enough to not know that politicians are not trustworthy, be it Trump or Harris.

But to be fair, I don't believe the idea of ​​using bitcoin as a reserve strategy is viable, it's still too early to think about that.

[legiteum]

A Bitcoin strategic reserve would do the same thing (except much more effectively) as a US oil strategic reserve: allow the US government to control the price of Bitcoin.

It's absolutely insane to see some in the Bitcoin community--which has its roots in libertarian ideals--support the idea of the US government using compelled taxpayer money to control Bitcoin's market price. Of course for many, those ideals don't mean anything, and all they want is the price of Bitcoin to go up in the short term no matter what the consequences are to society, our economy--or even Bitcoin in the long run.

All that said, my own prediction is that if Trump does anything at all with crypto (which is doubtful), he will make Bitcoin illegal in the US and make himself and his family trillions of dollars replacing that demand with his own fully-owned crypto. Such a move would be trivial in his position as president of the US, given his absolute control over his own party.

[Poker Player]

Gold has been in many countries reserves since many decades ago but the United States dollars remain strong. Despite how BRICS is not a threat to US dollar presently, BRICS should be considered as threat than bitcoin. I do not see bitcoin as a threat at all.

I only see this as a wrong speculation that can only be used to deceive the masses.

That's what I was thinking. The author of the article bases his argument on the fact that if Trump creates a strategic reserve of Bitcoin it will go against the dollar's status as a reserve currency. But the USA already has the largest gold reserves in the world and this does not go against its reserve status.

What goes against it is the massive printing of the last years, and a better fiscal adjustment would not hurt, I agree with the author on that, but otherwise he bases his argument on a false assumption.

[Darker45]

On the contrary, this isn't a "very interesting article". And rather than convincing the reader "why Bitcoin can't replace the dollar", it may actually do the exact opposite. This article is basically saying the dollar is a dying currency, on the road to becoming senseless, and that it badly needs saving.  

I don't know the author, but judging from the title of the book he's written, it seems he's one of those successful authors selling hollow words, competing against the great works of the likes of Albert Camus and Victor Frankl in the most strategic shelves in bookstores.

[ChiBitCTy]

I never thought that this entire bitcoin appearance of his was anything more than a thinly veiled ruse to try and garnish as many votes as possibly, as it was during the heart of his campaign run. I wrote off all talk of anything spoken as campaign lobbying and therefore not to be taken seriously. So, not really one who ever thought this a possibility to begin with, not right now anyhow.

[larry_vw_1955]

I never thought that this entire bitcoin appearance of his was anything more than a thinly veiled ruse to try and garnish as many votes as possibly, as it was during the heart of his campaign run. I wrote off all talk of anything spoken as campaign lobbying and therefore not to be taken seriously. So, not really one who ever thought this a possibility to begin with, not right now anyhow.

the relevant topic though isnt about trump or any president it's about whether bitcoin is a suitable replacement for the us dollar.

[fuguebtc]

I never thought that this entire bitcoin appearance of his was anything more than a thinly veiled ruse to try and garnish as many votes as possibly, as it was during the heart of his campaign run. I wrote off all talk of anything spoken as campaign lobbying and therefore not to be taken seriously. So, not really one who ever thought this a possibility to begin with, not right now anyhow.

Tell me, is there any politician in America who is a good person, keeps his promises and never lies for his political purposes? That's just the nature of politics and all politicians are liars.


Likewise, Harris' campaign keeps making thousands of different promises, isn't their goal also to gather as many votes as possible? Besides, what guarantees that she will keep her promises after being elected? Those things are so normal and unsurprising because that is the nature of politics, so I call it their strategy. The election is not over yet and the future is unpredictable, don't be so quick to judge others, let time tell.


The idea of ​​a bitcoin strategic reserve sounds crazy and impractical but it reminds me of people who used to despise bitcoin in the past. Now they feel regret and shame because their foolish judgment caused them to miss a golden opportunity.

[Cryptmuster]

Trump’s call for a bitcoin strategic reserve is a very bad idea https://www.ft.com/content/e0e5e286-1885-4d72-8b65-3333069815c1

"Bitcoin is not going to make America great. What will help this country continue to be great is getting our debt and deficits under our control."


This was a very interesting article explaining why bitcoin can't replace the dollar! Required reading. To anyone that thinks bitcoin get the government out of debt just NO. They need to be able to print more money.

These are just Trump's fantasies about Bitcoin being able to help pay off the debt, Trump has such dreams because voters would like their new president to have a plan to solve this problem. But I don't understand what Trump is counting on when he talks about Bitcoin as a solution to this problem, maybe he just wants people to believe him, but it doesn't take a lot of intelligence to check for yourself that this will be impossible.

To solve the debt problem, you don't need to look for a way to pay it off, but to eliminate the root cause of this problem and try to do everything possible to reduce expenses so that the debt stops growing and perhaps at least starts to decrease a little, these will be the first steps to solving this problem. Otherwise, you can look for as much as you like to pay it off, even with Bitcoin or another asset, but if it continues to grow at such a rate, then this problem will never be solved.

[pooya87]

A Bitcoin strategic reserve would do the same thing (except much more effectively) as a US oil strategic reserve: allow the US government to control the price of Bitcoin.

US regime didn't use to control oil price by having oil reserves. They used to control it (more or less) by directly or indirectly controlling oil producers (directly controlling dictators like the al-Saud in Arabia and indirectly controlling others like Venezuela by sanctions, installing US controlled governments, etc.). Even that control is lost as we saw over the past couple of years that even the dictators in Arabia no longer listen to US orders.

Similarly in bitcoin, the regime can not control bitcoin price by only owning a certain amount of it. They'll need to control the global market which is nearly impossible in my opinion.
Similar to oil they could perform market manipulations (eg. dump bitcoin from their strategic reserves to slow down the rise) but similar to oil price they won't be able to control it (as we see oil doesn't want to come below $80-ish no matter how much oil reserves the regime releases).

[MeGold666]

Bitcoin is not controlled by anyone, including the US government. We cannot print more of it to finance student or medical debt forgiveness, help out with first-time buyer downpayments, or deliver tax cuts when we are running huge budget deficits.

You must understand one simple thing: Printing money is not helping, printing money is stealing from everyone else.

This is the reason I hold all my money in crypto, because I don't want to "help" in downpayemnts or medical forgiveness or finance some students.

Maybe US government instead of spending another trillion dollars on army, could help it's citizens with mental help before they lose their job and end up on street ?
Naaaah, let's buy another couple hundred shinny toys just to look cool.