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Would you agree that the Strategic Oil Reserve has exactly the same qualities?

by tanseydavid 2y ago

hashmap 2y ago
I dunno, can you fill your tank up with bitcoin when you need to get to work?
- jrs235 2y ago
  Do EMPs destroy the ability to use and exchange oil?
  - DennisP 2y ago
    This is beside the point but they actually might. Take out the electric grid, and most other stuff stops working, including gas pumps and refineries.
QuadmasterXLII 2y ago
that’s not “in exchange for nothing”, its in exchange for oil. not terribly complicated.
roughly 2y ago
That depends on whether there’s a use for oil aside from as a tradable commodity, and additionally on whether there are scenarios in which we might need it for that potential use case in quantities that exceed our ability to easily acquire it.
arbitrary_name 2y ago
Short answer: no. Long answer: no, oil is needed for the functioning of our society. Helping smooth price volatility is useful and valuable. On the other hand, BTC is not needed for our society to function, and so there is little to no value in managing prices of it. This appears to be an attempt to hedge against the collapse in the trust in the dollar.
- amluto 2y ago
  > This appears to be an attempt to hedge against the collapse in the trust in the dollar. Or maybe an attempt to accelerate a reduction of trust in the dollar? Any cryptocurrency in the strategic reserve is being purchase with dollars, which increases the number of dollars in circulation, and will also be directly inflationary (if it’s newly issued dollars) or increases the US debt (if those dollars are obtained by issuing debt, which classical macroeconomic theory suggests is also inflationary).
  - desumeku 2y ago
    Maybe it's a good idea to have a currency that isn't being inflated and devalued all the time with every little thing the government does. Kind of gold. Maybe digital gold? I'll call it bitgold. Or what about bitcoin?
amalcon 2y ago
Oil is notably necessary to keep the united states military operational (in addition to the uses in other comments).
quantadev 2y ago
No, I wouldn't exactly call Oil worthless. lol. Thanks for the entertainment tho, with that post.

Would you agree that the Strategic Oil Reserve has exactly the same qualities?

hashmap 2y ago

I dunno, can you fill your tank up with bitcoin when you need to get to work?

jrs235 2y ago
Do EMPs destroy the ability to use and exchange oil?
- DennisP 2y ago
  This is beside the point but they actually might. Take out the electric grid, and most other stuff stops working, including gas pumps and refineries.

QuadmasterXLII 2y ago

that’s not “in exchange for nothing”, its in exchange for oil. not terribly complicated.

roughly 2y ago

That depends on whether there’s a use for oil aside from as a tradable commodity, and additionally on whether there are scenarios in which we might need it for that potential use case in quantities that exceed our ability to easily acquire it.

arbitrary_name 2y ago

Short answer: no. Long answer: no, oil is needed for the functioning of our society. Helping smooth price volatility is useful and valuable. On the other hand, BTC is not needed for our society to function, and so there is little to no value in managing prices of it. This appears to be an attempt to hedge against the collapse in the trust in the dollar.

amluto 2y ago
> This appears to be an attempt to hedge against the collapse in the trust in the dollar. Or maybe an attempt to accelerate a reduction of trust in the dollar? Any cryptocurrency in the strategic reserve is being purchase with dollars, which increases the number of dollars in circulation, and will also be directly inflationary (if it’s newly issued dollars) or increases the US debt (if those dollars are obtained by issuing debt, which classical macroeconomic theory suggests is also inflationary).
- desumeku 2y ago
  Maybe it's a good idea to have a currency that isn't being inflated and devalued all the time with every little thing the government does. Kind of gold. Maybe digital gold? I'll call it bitgold. Or what about bitcoin?

amalcon 2y ago

Oil is notably necessary to keep the united states military operational (in addition to the uses in other comments).

quantadev 2y ago

No, I wouldn't exactly call Oil worthless. lol. Thanks for the entertainment tho, with that post.