Latest Proposal• US Gov to Buy 200,000 BTC annually for 5 years • Hold for at least 20 years • Goal: Halve the U.S. national debt in 20 years

[u/WineMakerBg]

source

[u/HSuke]

Cool. So now we're options trading US debt on crypto?

Sounds like something a gambling addict would do

[u/8A8 → u/HSuke]

It's a hedge? The US has strategic reserves in all kinds of commodities - oil, gold, etc. It makes sense in a world that is so quickly shifting from analog to digital, to embrace a stateless digital asset that is literally >10% of the market cap of gold.

You must understand that literally everything from a political decision perspective is a game theory EV play. From arms races and trade wars, to alliances and treaties. Everything involves risk, and its a matter of hedging that risk.

[u/HSuke → u/8A8]

Strategic reserves are all things we use:

Grain, gas, oil, helium, antibiotics, vaccines, antidotes, lithium, gold, potassium, noble gasses

Bitcoin doesn't really fit here as having utility.

[u/clownysf → u/HSuke]

That’s still my main issue with a move like this. I don’t necessarily disagree with it but the lack of btc utility essentially makes this one large gamble.

[u/d8_thc → u/HSuke]

nobody is using the US government gold and that is not at all why it's stockpiled...

[u/e_jey → u/d8_thc]

But you could actually use it. Someone could buy it and put it to actual use. The device you’re using has hold in it.

[u/8A8 → u/e_jey]

Gold's industrial value is like 11% of its spot value currently. The argument for gold in this sense does not hold water.

[u/e_jey → u/8A8]

Take note the context of the conversation. At least the industrial use is even 11% of its spot value.

[u/Frogolocalypse → u/e_jey]

States don't hold gold for its industrial utility, they hold it for its numismatic value. If it didn't have that numismatic value, it would be worth a fraction of its current price.

[u/e_jey → u/Frogolocalypse]

My point is that at least it has some actual value. If everything went belly up right at this moment and what people needed was food then food would be worth more. At the end of the day Gold is peer pressure from the past. Everyone gave into the myth so here we are.

[u/Frogolocalypse → u/e_jey]

actual value

It has value because people pay for it. As with all things. If you think bitcoin has no value, then try and acquire some for nothing.

[u/e_jey → u/Frogolocalypse]

Yes people pay for it to use it. This isn’t semantics with me. I know I can buy something that doesn’t have value/utility to me other than feeling good for a few hours like alcohol.

[u/HelixTitan → u/8A8]

And if you think Bitcoin is a good hedging instrument, then you couldn't be more wrong. Stability is the name of the game for hedge strategies, there are way better options to do this exact same thing with, just not Bitcoin

[u/8A8 → u/HelixTitan]

A hedge is literally just a contingency plan.

Was Michael Burry's bet not a hedge against the status quo? The US does not exist in a vacuum, contrary to most American's beliefs. This is global game theory playing out in real time. We are literally seeing other economic giants growing warm to Bitcoin by the second. Russia, China, and Middle Eastern countries are frothing at the mouth at the thought of a collapsing US dollar and an alternative.

In a world where sovereign nations adopt Bitcoin in their reserves, even in small amounts (and there is already precedent with smaller, more agile nations, like Bhutan, and El Salvador), it becomes a chain-reaction of capital that no-one wants to be left behind in.

The US, with a relatively modest amount in the grand scheme of their budget, gets their foot in the door as a hedge to all of this playing out.

Am I stating that this a guaranteed play and that these other nation states will act this way? no.

Am I stating that it would be naive to believe that it is an impossibility? Absolutely.

[u/HelixTitan → u/8A8]

"Hedging against the status quo" how to revel In one sentence you know nothing about hedges. Lmao

Hedging against the status quo is just called speculative investments ya dingus. Hedging is a proper financial term and has it's own accounting strategies it isn't just a contingency plan

[u/Party_Incident9382 → u/HelixTitan]

Come on man:

Digital Scarcity: Bitcoin, with its fixed supply, can be seen as a hedge against the infinite printing of fiat money in a world where digital assets are gaining more value. 2. Global Access: Crypto is resistant to censorship and isn’t confined to the constraints of a single government or banking system, making it a hedge against centralized control in an increasingly global and connected economy. 3. Innovation Hedge: The rapid evolution of digital technology means that traditional financial tools might become obsolete. Cryptocurrencies and blockchain technology could be the future backbone of financial systems, making early adoption a hedge against being left behind.

Just do a little critical thinking

[u/davand23 → u/Party_Incident9382]

"Do a little critical thinking" pastes a chatgpt response

[u/Party_Incident9382 → u/davand23]

Do you feel GPT is not critical thinking? Why waste time trying to convince the closed minded?

Now that’s big brained stuff right thurrr

[u/penty → u/8A8]

Those reserves are specifically to keeping our economy going because they are consumable.

IMHO, I just don't see a need for the US to use BTC as a strategic reserve. Art has a great return, but we don't need an Art reserve.

[u/brainfreeze3 → u/8A8]

nobody hedges on margin jfc

[u/Ok_Nefariousness9019 → u/HSuke]

One of us.. One of us.. One of us.

[u/Meme_Stock_Degen → u/HSuke]

That’s the US gov I love baby. One of us!