Topic: Trump’s call for a bitcoin strategic reserve is a very bad idea - page 5. (Read 1246 times)

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.

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.

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.

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 .

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.

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.

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.

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.

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.

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.

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).

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.

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.

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

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.

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.

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.

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.

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.

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.


it would be pointless.