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My understanding of the executive action is that it authorizes this sovereign wealth fund as a place to store the Bitcoin that US authorities seize from crimina
by 827a 2y ago
My understanding of the executive action is that it authorizes this sovereign wealth fund as a place to store the Bitcoin that US authorities seize from criminals; that the Treasury is allowed (but not required) to develop a budget-neutral plan to purchase more Bitcoin; and that key people involved have stated that they never want the reserve to be liquidated.
I think you can definitely slippery slope your way into finding a problem with this, but it seems pretty reasonable to me. The government had all this bitcoin anyway. They've definitely sold some of it over time, but otherwise its just rotting in evidence lockers somewhere. We could definitely have a better plan in place to sell it, but that's boring.
- stickfigure 2y agoThe whole concept is daft! There's no reason whatsoever for a government that runs a deficit to invest in bitcoin or stocks or precious metals or diamonds or pokemon cards or anything else. It's just a transfer of wealth from the general public to a handful of well placed grifters. We're getting scammed.
- thrance 2y agoThis entire administration is a giant grift. A to Z: from cheap MAGA merch manufactured in Bengladesh to obvious conflicts of interests in DOGE, POTUS-endorsed crypto pump and dumps and insane bribery of almost every elected official.
- 827a 2y agoI don't think its fair to say there are no reasons. Having a large balance sheet and a diverse pool of assets helps with national creditworthiness and interest rate negotiation. When people say that US Treasuries are backed by the full faith of the United States, that "faith" includes her assets; and while having the power to print as much cash as you want is a pretty powerful asset to have, a few hundred billion in Gold and Bitcoin helps more than we'd be helped by liquidating it and paying down like 0.5% of the national debt.
- stickfigure 2y agoAs you just pointed out, a few hundred billion in gold is a drop in the bucket compared to the $36 trillion debt. If creditors get spooked, that reserve will do nothing. Liquidate it, lay off the guards and administrators (seems in vogue these days), and move on.
- 827a 2y agoYeah; sell the bitcoin. Sell the gold. Sell the forests. Cut the military. Why own anything at all? Credit is just floaty vibes anyway; the economy is based on debt, debt is the only thing anyone ever needs to own.
- stickfigure 2y agoForests and the military are public goods; citizens derive benefit from these things. Bitcoin and gold are not public goods.
- rideontime 2y ago> but that's boring Why is 'boring' bad?