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Probably the most straight-forward criticism of the idea I've run across is: > A strategic reserve makes sense if you can imagine a crisis where a crucial good

Probably the most straight-forward criticism of the idea I've run across is: > A strategic reserve makes sense if you can imagine a crisis where a crucial good - food, fuel, etc - would be in short supply: you want be able to release the reserve to meet demand. > But I cannot imagine a crisis where releasing an emergency reserve of crypto would do any good. * https://twitter.com/stephenfgordon/status/1896360640291483714 https://twitter.com/stephenfgordon/status/189636064029148371...

throw0101b 2y ago
And a more jokey-y take: > The main argument for a Strategic BItcoin Reserve seems to be that Bitcoin holders worry about an impending shortage of greater fools and need the US government to act as the greatest fool of last resort. * https://twitter.com/davidfrum/status/1870564077535470079 https://twitter.com/davidfrum/status/1870564077535470079
- franky53 2y ago
  [dead]
- recursive 2y ago
  Which part is supposed to be a joke?
- Analemma_ 2y ago
  How is that a joke? It's just straightforwardly correct and true.
- deleted 2y ago
  [deleted]
- UltraSane 2y ago
  That is actually very accurate
827a 2y ago
Why do we have ~$300B USD in gold sitting in reserve at Fort Knox?
- stickfigure 2y ago
  Inertia. A legacy of the gold standard. Or when kings paid for Hessian soldiers in gold. It's dumb.
- throw0101b 2y ago
  > Why do we have ~$300B USD in gold sitting in reserve at Fort Knox? ¯\_(ツ)_/¯ Of course gold is considered price stable(ish)—though it maybe shouldn't be: * https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart https://www.macrotrends.net/1333/historical-gold-prices-100-... * https://archive.is/https://www.thetimes.com/business-money/money/article/gold-is-not-a-safe-bet-its-a-gamble-holly-mead-column-cht3m6ckh https://archive.is/https://www.thetimes.com/business-money/m... —but BTC (and most other cryptocurrencies) are even more volatile and even less of a 'store of value'.
- f33d5173 2y ago
  Gold is traditionally the currency of international exchange, where you can't use any one country's currency. One can imagine a crisis that reverts international markets to using gold like this, at which pointing having a reserve would be useful.
  - nradov 2y ago
    Help us out here, what sort of crisis can we imagine where the federal government needs something from another country which can only be purchased with gold bullion? My imagination is failing me.
    - text0404 2y ago
      the US somehow tanks its own economy say based on the whims of a president who wants to allow the ultra-rich who enabled his ascendancy to buy everything for pennies on the dollar, leading to the collapse of the US dollar. a major terrorist attack or climate event cripples US infrastructure but because an unelected member of said ultra-rich class has destroyed major functions of government, there is no ability to respond, and none of our former allies is willing to extend goodwill to the US because we've completely destroyed our reputation on the world stage. thankfully, something like that could never happen.

throw0101b 2y ago

And a more jokey-y take: > The main argument for a Strategic BItcoin Reserve seems to be that Bitcoin holders worry about an impending shortage of greater fools and need the US government to act as the greatest fool of last resort. * https://twitter.com/davidfrum/status/1870564077535470079 https://twitter.com/davidfrum/status/1870564077535470079

franky53 2y ago
[dead]
recursive 2y ago
Which part is supposed to be a joke?
Analemma_ 2y ago
How is that a joke? It's just straightforwardly correct and true.
deleted 2y ago
[deleted]
UltraSane 2y ago
That is actually very accurate

827a 2y ago

Why do we have ~$300B USD in gold sitting in reserve at Fort Knox?

stickfigure 2y ago
Inertia. A legacy of the gold standard. Or when kings paid for Hessian soldiers in gold. It's dumb.
throw0101b 2y ago
> Why do we have ~$300B USD in gold sitting in reserve at Fort Knox? ¯\_(ツ)_/¯ Of course gold is considered price stable(ish)—though it maybe shouldn't be: * https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart https://www.macrotrends.net/1333/historical-gold-prices-100-... * https://archive.is/https://www.thetimes.com/business-money/money/article/gold-is-not-a-safe-bet-its-a-gamble-holly-mead-column-cht3m6ckh https://archive.is/https://www.thetimes.com/business-money/m... —but BTC (and most other cryptocurrencies) are even more volatile and even less of a 'store of value'.
f33d5173 2y ago
Gold is traditionally the currency of international exchange, where you can't use any one country's currency. One can imagine a crisis that reverts international markets to using gold like this, at which pointing having a reserve would be useful.
- nradov 2y ago
  Help us out here, what sort of crisis can we imagine where the federal government needs something from another country which can only be purchased with gold bullion? My imagination is failing me.
  - text0404 2y ago
    the US somehow tanks its own economy say based on the whims of a president who wants to allow the ultra-rich who enabled his ascendancy to buy everything for pennies on the dollar, leading to the collapse of the US dollar. a major terrorist attack or climate event cripples US infrastructure but because an unelected member of said ultra-rich class has destroyed major functions of government, there is no ability to respond, and none of our former allies is willing to extend goodwill to the US because we've completely destroyed our reputation on the world stage. thankfully, something like that could never happen.