r/CryptoCurrency • u/WineMakerBg Make Wine, Take Profits • Jan 28 '25

GENERAL-NEWS 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

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u/Ngc2273 🟦 0 / 0 🦠 Jan 28 '25

People need to think about this a little bit more. What does the world look like where BTC has "prevailed"? 1. Who will the US be selling that amount of BTC to, to get that much value without crashing it? 2. If there are countries that are demanding and transacting in Bitcoin in that scenario, (which is what would've given BTC that much value), it means we would have long shifted away from the USD as the reserve. It would've been already devalued completely. Paying off that USD debt in that situation would be completely irrelevant amongst other things.

A lot of the political blabbering is just to make personal unregulated portfolios go up, with no long term coherently thought out plan that actually benefits the people.

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u/Deep_Researcher4 🟩 0 / 0 🦠 Jan 28 '25

Don't think about it too hard; it's a pump and dump scheme. Trump doesn't give a shit what happens 20 years from now.

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u/CHUBBYninja32 🟦 0 / 0 🦠 Jan 29 '25

If there was any leak that the USA is selling some of its coin, the market would fucking tumble trying to get out ahead. Doesn’t make any sense.

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u/8A8 🟩 0 / 0 🦠 Jan 29 '25

Imagine if the US announced they were liquidating their gold reserves. You do not believe the price of gold would tumble?

Imagine if the US announced they are removing regulations regarding drilling for oil, and are dissolving their oil reserves - the price of oil would tumble as well.

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u/georgetonorge 🟦 35 / 35 🦐 Jan 29 '25

Pretty sure that’s exactly what they’re saying

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u/8A8 🟩 0 / 0 🦠 Jan 29 '25

Exactly, no sane person would state that the price of Bitcoin would be fine if the US sold some of their reserve - that's how markets work.

I am saying that this is no reason to dismiss the entire venture entirely. Because thats how all assets work.

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u/hunkydorey_ca 🟦 0 / 0 🦠 Jan 28 '25

Exactly, also the conversion to today's standards of cost of living may not be the same if inflation is equal to Zimbabwe in 2007. If you are investing in something else (like BTC) what's going to happen to the USD if no one invests in it.

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u/8A8 🟩 0 / 0 🦠 Jan 28 '25

Its important to distance yourself from the idea that utilizing an asset is akin to needing to sell it. Bitcoin, as I laid out, is pristine collateral.

A nation state would be in a position to borrow against their Bitcoin, without needing to touch it. Just like many entities currently do with their existing Bitcoin stockpiles.

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u/Ngc2273 🟦 0 / 0 🦠 Jan 28 '25

My man you sound like one of those NFT promoters. Stop with that stuff. Bitcoin is not a painting. It's not a consumable commodity. It's not an aesthetic. You need to sell it at some point.

Anyways, even the situation you're describing does not protect you from exchanging Bitcoins. When you're unable to return what you borrowed then your "pristine" collateral belongs to the counterparty, you will have to give it up.

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u/wurzelbrunft 🟩 5 / 5 🦐 Jan 29 '25

So the idea is to make debt by borrowing against Bitcoin to pay back debt? 🤔

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u/8A8 🟩 0 / 0 🦠 Jan 29 '25

Thats sort of how the entire US economy works. The US creates debt to push growth, in order to pay back debt.