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Bitcoin Reserve Bills Are Failing in Quick Succession in States

sharemywin 2y ago
because it's one of those schema to dump a giant pile of sh*t on to the public. government buys reserve price skyrockets. no one uses it so the price plunges American tax payers stuck holding the bag.
Ancalagon 2y ago
yes devalue your hard-earned dollars, thats a great idea
reverendsteveii 2y ago
I'm not against the idea of holding strategic commodity reserves but the idea of holding reserves in a strategic commodity that can be up and down by 20% in a week is an issue Being said, every time one of these passes I'm buying a bunch and then dumping it a week later. Just like the inauguration bump, because BTC has a lot of hype behind it. One might say that hype is actually the primary commodity in BTC.
- slyall 2y ago
  The real smart money buys before the launch and dumps in the first minute after. They make their money from you.
  - Synaesthesia 2y ago
    I can see that being a sound basis for an economy, yes.
  - reverendsteveii 2y ago
    And I still make money. I'm okay with being neither the greatest nor the least fool.
- numba888 2y ago
  The thing is you may guess and get lucky, but those who control it a lucky almost always, as they know upfront. For example before sensitive announcement politician or other 'big boss' can buy or sell. Through controlled agents to hide his interest, of course. Trump made some announcements then congratulate BTC holders on record high price. That was his payback and hint for their donations. Smart people got it. But it would be hard for him to invest taxpayers money into this scam. First he knows it. Second he would have to explain and he is not a dictator yet to force it through. As for post-election BTC buyers Trump doesn't own them anything. They are going to loose a lot.
potatototoo99 2y ago
Of all the countries to have a bitcoin strategic reserve, the US is where it makes the least sense. Replacing a reserve currency they control with another they can't.
- spiderfarmer 2y ago
  It’s almost like bitcoin bros care about just one thing: number go up. Every single initiative from them should be seen in that light.
- jqpabc123 2y ago
  Yes. China quickly realized there was no real benefit to be extracted from bitcoin. It's taking the US much longer to reach the same conclusion. Another example of China economically out maneuvering the US.
kinakomochidayo 2y ago
Good, there’s no reason to hold an asset with unaddressed critical security budget issues. As block rewards get halved every 4 years, if the transaction fees remain low as it is today (due to ETFs, HODL, wrapped BTC, etc) the chain could get attacked.
- npoc 2y ago
  The bitcoin transactions are scarce, just like the bitcoin itself. Hard limited to ~7/sec max. It's impossible for the fees not to grow with demand for transactions - in fact other than possible optimisations of the transaction data size there's a direct relationship between demand and transaction fee. With bitcoin optimised for storing large amounts of value, there's a lot of room for fees to increase as adoption and the value of transactions increase. Even $50 is extremely cheap for storing $100,000k worth of value losslessly for 10 years and transferring it around the world in about 10-30 mins with final settlement. Impossible to do that at the moment without gambling/lending your money to an index fund - and more and more companies in those index funds are storing their value in bitcoin due to it being an ideal store of value, optimised for large amounts for large amounts of time.
  - munksbeer 2y ago
    $100,000k is $100m. Is that what you meant? $100m bitcoin might be worth $1m in 10 years, or zero, or $10bn. I don't think that qualifies as "losslessly".
    - npoc 2y ago
      You're right, I meant $100k Regarding losslessly - I'm referring to the point at which the market for bitcoin is largely saturated (in a few decades?). At this point the price per bitcoin will be at least $10M/BTC in today's dollars and will have stabilised - the current volatility comes from its fast growth. Until then you're looking at a CAGR of at least 40% over the next couple of decades if you are willing to hold it for at least 4 years (historically the wavelength of the macro volatility, but this period will reduce as the market matures) . It's hard to imagine but it is still so early in it's growth curve - comparable to the internet in 1990. In the last 12 months the pipelines have been opened to institutional money and US is even discussing the idea of a national reserve, even though Trump is yet to see the difference between bitcoin and crip-toe which are poles apart in terms of usefulness. One is going to $infinity, the other desperately clinging to it's coattails like a parasite, to zero.
scotty79 2y ago
Why do governments and such always time those purchases to be done at the very top of 4 year cycle? They should be buying these "reserves" at the beginning of 2023. Now they would have 5x return and 7x in next few months.
jxjnskkzxxhx 2y ago
"bitcoin reserve" must be the dumbest idea I've heard since "bitcoin".
nitwit005 2y ago
I wouldn't be surprised if even the people who proposed the bills didn't want them to pass. This gets you in the news, which is increasingly difficult for some governors and state congressmen.
qgin 2y ago
I have yet to hear a legitimate case for why a government should hold a bitcoin reserve aside from Number Go Up. Usually that it will make the number go up and btc holders tend to like that.

because it's one of those schema to dump a giant pile of sh*t on to the public. government buys reserve price skyrockets. no one uses it so the price plunges American tax payers stuck holding the bag.

Ancalagon 2y ago

yes devalue your hard-earned dollars, thats a great idea

reverendsteveii 2y ago

I'm not against the idea of holding strategic commodity reserves but the idea of holding reserves in a strategic commodity that can be up and down by 20% in a week is an issue Being said, every time one of these passes I'm buying a bunch and then dumping it a week later. Just like the inauguration bump, because BTC has a lot of hype behind it. One might say that hype is actually the primary commodity in BTC.

slyall 2y ago
The real smart money buys before the launch and dumps in the first minute after. They make their money from you.
- Synaesthesia 2y ago
  I can see that being a sound basis for an economy, yes.
- reverendsteveii 2y ago
  And I still make money. I'm okay with being neither the greatest nor the least fool.
numba888 2y ago
The thing is you may guess and get lucky, but those who control it a lucky almost always, as they know upfront. For example before sensitive announcement politician or other 'big boss' can buy or sell. Through controlled agents to hide his interest, of course. Trump made some announcements then congratulate BTC holders on record high price. That was his payback and hint for their donations. Smart people got it. But it would be hard for him to invest taxpayers money into this scam. First he knows it. Second he would have to explain and he is not a dictator yet to force it through. As for post-election BTC buyers Trump doesn't own them anything. They are going to loose a lot.

potatototoo99 2y ago

Of all the countries to have a bitcoin strategic reserve, the US is where it makes the least sense. Replacing a reserve currency they control with another they can't.

spiderfarmer 2y ago
It’s almost like bitcoin bros care about just one thing: number go up. Every single initiative from them should be seen in that light.
jqpabc123 2y ago
Yes. China quickly realized there was no real benefit to be extracted from bitcoin. It's taking the US much longer to reach the same conclusion. Another example of China economically out maneuvering the US.

kinakomochidayo 2y ago

Good, there’s no reason to hold an asset with unaddressed critical security budget issues. As block rewards get halved every 4 years, if the transaction fees remain low as it is today (due to ETFs, HODL, wrapped BTC, etc) the chain could get attacked.

npoc 2y ago
The bitcoin transactions are scarce, just like the bitcoin itself. Hard limited to ~7/sec max. It's impossible for the fees not to grow with demand for transactions - in fact other than possible optimisations of the transaction data size there's a direct relationship between demand and transaction fee. With bitcoin optimised for storing large amounts of value, there's a lot of room for fees to increase as adoption and the value of transactions increase. Even $50 is extremely cheap for storing $100,000k worth of value losslessly for 10 years and transferring it around the world in about 10-30 mins with final settlement. Impossible to do that at the moment without gambling/lending your money to an index fund - and more and more companies in those index funds are storing their value in bitcoin due to it being an ideal store of value, optimised for large amounts for large amounts of time.
- munksbeer 2y ago
  $100,000k is $100m. Is that what you meant? $100m bitcoin might be worth $1m in 10 years, or zero, or $10bn. I don't think that qualifies as "losslessly".
  - npoc 2y ago
    You're right, I meant $100k Regarding losslessly - I'm referring to the point at which the market for bitcoin is largely saturated (in a few decades?). At this point the price per bitcoin will be at least $10M/BTC in today's dollars and will have stabilised - the current volatility comes from its fast growth. Until then you're looking at a CAGR of at least 40% over the next couple of decades if you are willing to hold it for at least 4 years (historically the wavelength of the macro volatility, but this period will reduce as the market matures) . It's hard to imagine but it is still so early in it's growth curve - comparable to the internet in 1990. In the last 12 months the pipelines have been opened to institutional money and US is even discussing the idea of a national reserve, even though Trump is yet to see the difference between bitcoin and crip-toe which are poles apart in terms of usefulness. One is going to $infinity, the other desperately clinging to it's coattails like a parasite, to zero.

scotty79 2y ago

Why do governments and such always time those purchases to be done at the very top of 4 year cycle? They should be buying these "reserves" at the beginning of 2023. Now they would have 5x return and 7x in next few months.

jxjnskkzxxhx 2y ago

"bitcoin reserve" must be the dumbest idea I've heard since "bitcoin".

nitwit005 2y ago

I wouldn't be surprised if even the people who proposed the bills didn't want them to pass. This gets you in the news, which is increasingly difficult for some governors and state congressmen.

qgin 2y ago

I have yet to hear a legitimate case for why a government should hold a bitcoin reserve aside from Number Go Up. Usually that it will make the number go up and btc holders tend to like that.