crypto is a scam and a crime against earth. Its like someone invented a way to both rob dumbfvcks and destroy earth at the same time with NOTHING tangible to actually own
Trump's a fascist. When the going gets tough, and it will get tough, he might as well take Saylors bitcoin. Simply appropriate for the good of the state.
As bad as that is, I'd laugh so hard, I'd have to be hospitalized.
Not sure what they’ll end up doing but the Lummis bill has them swapping gold reserves for Bitcoin instead of issuing new debt etc. not sure if would work but seems less stupid at the margin
I absolutely hate that I’ve just devoted 10 minutes to thinking through what that would mean for inflation & the dollar and I can never get those 10 minutes back.
Genuinely interested in where you got to. My thought along the lines of 'this wld be tantamount to ditching the USD & adopting a new currency; leaves behind govt debt (& corresponding $ claims)'
Depends on what we think of as "the dollar." The markets for eurodollars and guaranteed US bank deposits won't suddenly disappear because the Treasury owns bitcoin. If these are the dollar -- and I think they are -- nothing will change.
Professionally, when considering weird tail scenarios like this, colleagues wld tend to say 'I think we'll have bigger problems if something like THIS happens' as a way to move the convo on. Or 'optimum portfolio is a loaded shotgun and a store of tinned food'. But think it's worth thinking through.
What wld it do to confidence in other fiat? Trying to imagine a global bond market without USTs. iirc, USSR basically replaced their money one weekend or something. But a hermetically sealed monetary system.
I feel like that's the dream - but I feel like that would so positively favor high income/high productivity countries and hurt lower income/lower productivity countries, the whole global trade system would just... break
During the Irish Bond mkt lock-out we considered a parallel currency generated by Irish CB printing, unauthorised by ECB.
Public sector pay (would they accept it as pay since they were anti Troika?), tax bill in it etc.
They prob imagine some cryptobro wheeze to leave behind UST debt in soft $.
Couldn't happen - why would debt holders accept Bitcoin in exchange for their nice safe Treasuries? And the price of bitcoin would plummet as soon as the government said it would do it, as they'd be flooding the market with supply to people who would want to exchange it for USD immediately.
Literally giving the swindlers their out. The government buys it up, they sell while it's at the all time high and leave the rest of us holding the bag.
The thing worse than idiots in government is crypto idiots who think they're geniuses. If they have all this crypto to pay off the national debt, who are they going to pay? The holders of the debt, ie owners of US Treasury bonds. And why should they exchange their secure, stable asset for bitcoin?
Furthermore, as soon as the government said it was going to spend the bitcoin on Treasuries, the price would come down, as they'd be flooding the market with new supply. The price would crash, end of bitcoin boom. These guys are hucksters who never did Econ 101.
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As bad as that is, I'd laugh so hard, I'd have to be hospitalized.
“Fat chance. I sold it to the Fed.”
“What?”
“Yeah, they had this daft idea they were going to pay off the national debt with it, but the banks said they want real money.”
But at least that's only a waste of one's time.
The Bitcoin block chain processes 7 transactions per second
So the global economy can't run at that rate, something would have to exist off chain
Versus a Public Money as a Public Resource
Democracy:
Public Law & Public Money
For infinite amounts of Public Good
Thank you for my new t-shirt design
It’s all mind bending to think through.
And particularly why it’s not based on stable coins / crypto. Seemed a potential use case
Public sector pay (would they accept it as pay since they were anti Troika?), tax bill in it etc.
They prob imagine some cryptobro wheeze to leave behind UST debt in soft $.
https://bsky.app/profile/ruoshuiresearch.bsky.social/post/3laja7r4m3m2a
Further more, the USA is a Currency Issuer, it doesn't need Bitcoin to help it out.It can issue USDs 24/7 and does.
How do these people get elected?
South Sea Bubble minus the slavery angle
https://www.bloomberg.com/news/articles/2024-11-14/trump-s-ally-lummis-pushes-to-sell-some-of-the-fed-s-gold-to-buy-bitcoin
Think hyper inflation & Weimar Germany
Perhaps @meadwaj.bsky.social has a view?
And had its productive capacity reduced due to war
US: Issues own currency. No debts in foreign currency. Floats currency
US can never unintentionally go broke