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

[BitGoba]

Every fiat currency has ended in disaster and hyperinflation. This is similar to a person – a person’s life ends with certain death, and it’s the same with fiat currencies; they will all eventually collapse due to hyperinflation. When hyperinflation begins, it doesn’t necessarily mean a "Mad Max" scenario. People continue to work, live, and trade; they will simply switch to a harder form of money. For example, today, the dollar is harder money than other fiat currencies like those of Turkey, Argentina, Venezuela, and other countries whose fiat currencies have disappeared due to hyperinflation. People in those countries just switched to the dollar, and the dollar became the medium of exchange (MOE) and the unit of account (UOA).

Just to clarify, since many people do not understand what money is, it would be good to explain the basic functions of money. Money is a social consensus that we use to facilitate the exchange of goods and services.Throughout history, money has taken many forms, but it has consistently served three practical functions: a store of value SOV , a unit of account UOA, and a medium of exchange MOE. When fiat currencies like the USD collapse, will we return to gold? Of course not. Due to gold's flaws and poor characteristics as money, the modern fiat system was created.

Bitcoin is the most superior form of money the world has ever seen. It is the first money that can perform all the functions of money and the first money that has all the characteristics that good money should have. Bitcoin is a black hole that will absorb everything.

[Wind_FURY]

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

OP, a "very bad" idea for who/what? Trump or Bitcoin?

I believe that it's a VERY GOOD idea, for the accumulator of Bitcoin. Because Bitcoin, as a censorship-resistant cryptocurrency that could weaken political strongholds, SHOULD be held by many countries in different parts of the world as a resource/asset to go around each others' economic sanctions/censorship.

[Smack That Ace]

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

OP, a "very bad" idea for who/what? Trump or Bitcoin?

I believe that it's a VERY GOOD idea, for the accumulator of Bitcoin. Because Bitcoin, as a censorship-resistant cryptocurrency that could weaken political strongholds, SHOULD be held by many countries in different parts of the world as a resource/asset to go around each others' economic sanctions/censorship.

The idea of ​​making bitcoin a national strategic reserve is a great idea because it helps take bitcoin to the next level. But the problem is that implementing this idea is not easy and it is still too early to think about this. To be fair, given the volatile nature of bitcoin, using it as a strategic reserve would be quite risky for a country's economy. In case Trump is elected and proposes this idea, it is very likely that Congress will reject it or his proposal will face opposition from the Fed because as far as I know, the Fed is the unit that supervises the national reserve assets.
In addition, for this idea to be viable and to ensure everything goes smoothly, the US needs to hold more bitcoins like what they are doing with gold.

[arwin100]

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

OP, a "very bad" idea for who/what? Trump or Bitcoin?

I believe that it's a VERY GOOD idea, for the accumulator of Bitcoin. Because Bitcoin, as a censorship-resistant cryptocurrency that could weaken political strongholds, SHOULD be held by many countries in different parts of the world as a resource/asset to go around each others' economic sanctions/censorship.

Good idea to the fact that it will strengthen up the believe of lots of investor around the world since USA is already making it as their reserve if it happen that Trump allow it. But the major concern with that plan is the manipulation attempts that might happen also the FUDs will spread especially if USA will create a move on their bitcoin accumulated since for sure we can see a lot of pump and dump schemes which provably not good sight to see.

That's why somehow I'm glad that it didn't happen for now since they can use this as weapon to control the people's mind. Also we can continue to do our thing especially bitcoin right now has not been bothered by influential countries. But lets still see the further development if there's change of mind will happen and if we could see all the assumptions of people.

[Charles-Tim]

OP, a "very bad" idea for who/what? Trump or Bitcoin?

Read the link that OP posted. It is just a speculation about United States having bitcoin as strategic reserve not to be good for the country (United States). Thinking that other countries may abandon USD for bitcoin. But this is just a wrong speculation. The reason I posted in my first reply on this thread that gold has been a reserve asset for many countries since many decades ago.

[legiteum]

Every fiat currency has ended in disaster and hyperinflation. [...]

The US dollar has been very stable for the last 40 years. The Euro has never seen hardly any significant inflation, let alone hyperinflation.

Bitcoin, on the other hand, loses 40% of its value in a few weeks during market swings.

You really need to come back down to earth when you discuss macroeconomics .

[cr1776]

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.

I presume that one rationale for using bitcoin would be to help get the debt and deficits under control by adopting hard money to a certain extent instead of continuing to use a politician's (and authoritarian's) dream money that can be control and inflated away.   Governments have mismanaged fiat currencies - the dollar has lost around 99% of its value due to Fed mismanagement and other currencies have done worse.  Anyone arguing that governments "need to be able to print more money" is looking for power and control over their populations and whether their know it or not are supporting people and institutions with bad motives who don't want freedom or liberty.

FT.com is a pretty far left publication so it isn't unexpected that they would say that - anything that helps people get out from under the thumb of governments is anathema to them.

If I recall, they weren't a fan of what El Salvador did.  None of the centralized planning agencies where.

[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.

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

I didn't say that it was, did I?  I simply stated that I never believe the nonsense he spews from the get go, adding my take on the whole thing, and then at the end of what I stated, I mentioned that fact that I don't believe this was a possibility to begin with, agreeing with the fact that I don't think it's a good idea as it makes no sense for where bitcoin is currently at or likely making any sense going forward.  Bitcoin will never replace the dollar.

[cr1776]

Every fiat currency has ended in disaster and hyperinflation. [...]

The US dollar has been very stable for the last 40 years. The Euro has never seen hardly any significant inflation, let alone hyperinflation.

Bitcoin, on the other hand, loses 40% of its value in a few weeks during market swings.

You really need to come back down to earth when you discuss macroeconomics .

Very stable?  Hardly - the dollar is the opposite of stable over time.

$1 in 1984 could purchase $3.03 in 2024.  That isn't stable.  You've lost 2/3s of your purchasing power.
Between 1970 and today, $1 in 1970 could purchase more than $8 today ($8.14).
Look at the price of gold in 1914 to today.  One ounce of gold was worth $20.  Today it is around $2500.  Ditto for any other object that could hold value - houses etc.  A Model T was around $260 in the 1920s.  Look at a car today.

This is the opposite of stability.  Sure, you may not have short term volatility that bitcoin currently has, but if you want to have a stable currency where you can safely store the value created by you during your life for more than a few months or years without it being sucked away by inflation, fiat currency is not it.  

Anyone owning bitcoin for any reasonable length of time has not lost money because people realize that government money isn't safe.

[Ziskinberg]

This was a very interesting article explaining why bitcoin can't replace the dollar! Required reading.

That’s unlikely to happen, even if we think it might, because we’re in the crypto space. We couldn’t stop the government from regulating crypto, even though the purpose of crypto or Bitcoin is decentralization, so it's already game over in that sense.

As for investment, it seems unlikely too. Even if the USA holds Bitcoin, other nations will still have their own strategies. It’s hard to manipulate because each nation has its own interests and will find ways to gain an advantage. If Bitcoin is used, it would be difficult for them. Plus, governments aren’t the majority holders of Bitcoin, so its volatility won’t go away, which makes it a poor choice as an investment for a nation.

[cr1776]

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

OP, a "very bad" idea for who/what? Trump or Bitcoin?

I believe that it's a VERY GOOD idea, for the accumulator of Bitcoin. Because Bitcoin, as a censorship-resistant cryptocurrency that could weaken political strongholds, SHOULD be held by many countries in different parts of the world as a resource/asset to go around each others' economic sanctions/censorship.

It is a very bad idea for people who want to be able to control everyone by controlling the money supply.  It is a very bad idea for people who want to be able to censor transactions and cut people off from the financial system (e.g. like fascists trying to cut Trump off from PayPal and Stripe in 2020).  It is a very bad idea for people who want power and want to be able to tax people so that they lose value of their savings and investments year after year.   It is a good idea for practically everyone who isn't in those categories since it lets one protect oneself from those type of people.

With a bitcoin reserve you allow a country to (eventually when there is fiat/bitcoin equilibrium) use bitcoin to help back a currency which would then enforce fiscal discipline on the profligate spenders who want to buy votes with money.  Will this happen?  Probably not, but it does let people protect themselves using their freedom from people who are more than willing to sell themselves, their progeny and their countries into debt slavery in order to enrich themselves temporarily.  Just look at how it worked out in the USSR, Mao's China etc.

[legiteum]

Every fiat currency has ended in disaster and hyperinflation. [...]

The US dollar has been very stable for the last 40 years. The Euro has never seen hardly any significant inflation, let alone hyperinflation.

Bitcoin, on the other hand, loses 40% of its value in a few weeks during market swings.

You really need to come back down to earth when you discuss macroeconomics .

Very stable?  Hardly - the dollar is the opposite of stable over time.

$1 in 1984 could purchase $3.03 in 2024.  That isn't stable.  You've lost 2/3s of your purchasing power.

Bitcoin can lose that sort of value in a view months.

And a 3% annual inflation rate, when it's easily predictable, is the very opposite of "unstable". It means you can easily make long-term predictions on the USD, and trade with it on a day-to-day basis.

Bitcoin is a high-risk / high-gain investment, like any hot stock. The USD is the same as it's been for a half century. It's not a way to make money through speculation, it's simply a low-risk investment that loses it's value slightly over time.

If you are absolutely convinced that Bitcoin will never ever go down in value, then by all means place every penny of your life savings into it. I suspect a lot of people have because they are told by charlatans that Bitcoin can "never go down in price". But thus far human beings haven't invented an instrument that cannot go down in price in the history of mankind. Not gold, not soybeans, not stocks, not anything. But if you are convinced that Bitcoin is the first one, well, I guess I can't stop you .

[m2017]

"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."

Of course, it is not the bitcoin that will make America greater, but the CBDC.

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.

The dollar will be replaced by a digital dollar, not by bitcoin.

CBDC allows governments to print even more money (electronic) so that there is no need to physically print this paper. Saving paper is a profit and approval from Greenpeace!

So, Grandpa Trump said everything honestly.

[adaseb]

You need to realise just because he says he wants to do this, doesnt mean he will actually go and do it. And even if he does, there can be an opposition and it might get shut down by some higher entity. He doesnt have as much power as everyone thinks he has.

It is possible there might be a bitcoin reserve, I think it will be in small numbers. It will be negligible amount which wont affect the US government spending and also it will be minuscule enough where it wont affect the supply of bitcoin much to effect the price. He is saying alot of things about crypto. Who knows which he will commit to and which he wont. We wont know until he is in office in January after he wins the election in November. We will see how the debate tonight goes with Kamala.

[Abiky]

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.

Well, we all know it's impossible to pay off the national debt at this point. BTC only has a market cap of $1.13T. The idea of a US Bitcoin reserve is nice, but backing the USD with it is impossible. Despite naysayer's comments, there's no denying that Trump is more pro-crypto than Kamala Harris herself. Even RFK Jr. was a pro-crypto presidential candidate.

American politicians are starting to recognize crypto's potential. If Trump wins, expect BTC to go all the way to the moon (even if he fails to keep up with his promises). Unless the US defaults, the national debt will continue to rise until it becomes a huge problem to the American economy (and the globe). I'm pretty sure Bitcoin will do fine.

[FinneysTrueVision]

A Bitcoin reserve is neither good nor bad for the dollar. The government can hold Bitcoin and it can also get the deficit under control, these are not mutually exclusive. If the dollar’s status as a reserve currency is being threatened, that has more to do with U.S. policies and not because people are realizing that Bitcoin might be better in several ways.

We don’t really see China and Russia adopting Bitcoin, they still prefer fiat. It is not Bitcoin that is a threat. Irresponsible spending and foreign policy are what have diminished confidence in the US dollar.

[Wind_FURY]

OP, a "very bad" idea for who/what? Trump or Bitcoin?

Read the link that OP posted. It is just a speculation about United States having bitcoin as strategic reserve not to be good for the country (United States). Thinking that other countries may abandon USD for bitcoin. But this is just a wrong speculation. The reason I posted in my first reply on this thread that gold has been a reserve asset for many countries since many decades ago.

They're merely putting words in someone else's mouth by making an "opinion" on other people's opinions, then gaslighting everyone into believing that that "opinion" was the other person's "actual opinion".

There are some people in BitcoinTalk who are like that, but when they notice that their Ad Hominem, gaslighting, mud-slinging strategies in debates are not working anymore, they will avoid talking to you.

[3kpk3]

Trump is just getting desperate and saying and doing whatever it takes to win the presidency which is why his whole crypto supporting stance switch in recent times is just as fake as him.

The dude will probably ditch any talk about BTC and crypto in general if he becomes president which is why people in this forum need to think twice before posting these sort of threads.

[Wiwo]

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.




   

It's a bad idea for a country to replace their national currency with bitcoin because doing that put their economy into higher volatility, take example from the success recorded with the way EL Salvador adoption of bitcoin was approached, first as an alternative currency with legal backing, and there after their went on to invest in bitcoin by holding quit a good number of bitcoin.

With that, El Salvador have position themselves to take advantage of all the potential that come with bitcoin, so if any US president want to embrace bitcoin, having the mindset of alternative adoption of bitcoin and making some bitcoin friendly policies becomes his central of attraction, when making their campaign speech.

[BALIK]

Trump is just getting desperate and saying and doing whatever it takes to win the presidency which is why his whole crypto supporting stance switch in recent times is just as fake as him.

The dude will probably ditch any talk about BTC and crypto in general if he becomes president which is why people in this forum need to think twice before posting these sort of threads.

How do you know Trump is lying? Do you have evidence? Do you have a crystal ball that can tell you everything about the future, or are you just making baseless assumptions and trying to impose your thoughts on others? I'm not saying he changed his mind about crypto and actually supports it because I don't have proof of that either but it's too early to say he's just lying and will ignore any discussion about BTC or crypto if he becomes president. The election is not over yet and no one knows what will happen after that.

But now, we know that Trump has publicly expressed support for cryptocurrencies, while Harris has ignored and said no to anything related to cryptocurrencies. That shows she does not support the development of cryptocurrencies. As a bitcoin investor, I see no reason to vote for her when she has little to no interest in bitcoin.