52 sats \ 12 replies \ @grayruby 11 Aug \ on: Should the US Government Acquire a Bitcoin Reserve? • Listen on Fountain bitcoin
They probably should but I hope they don't.
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136 sats \ 11 replies \ @Undisciplined OP 11 Aug
I say they shouldn't, but probably will.
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44 sats \ 4 replies \ @grayruby 11 Aug
Why do you say they shouldn't?
And I mean what is the logical argument for not doing it, not why you don't want them to do it.
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41 sats \ 3 replies \ @Undisciplined OP 11 Aug
I don't have a strong opinion about this. I was just being needlessly contrarian.
I do think there are real risks to letting them start investing in speculative assets. That's not about Bitcoin, but there's a slippery slope in that direction.
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49 sats \ 2 replies \ @grayruby 11 Aug
I think that's a fair argument. How would you feel if they just established a reserve based on the Bitcoin they already have?
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71 sats \ 1 reply \ @Undisciplined OP 11 Aug
I would rather they sold it. I want people to have Bitcoin and the State to become insolvent.
From a public finance standpoint, it probably does make sense for them to add Bitcoin to the other monetary assets that they hold as reserves.
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51 sats \ 0 replies \ @grayruby 11 Aug
I would rather they sold it too. As bell_curve mentioned and I responded in agreement they will probably end up selling it in a bear market (or maybe in a bull) anyways, but doesn't mean it wouldn't be a good experiment.
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46 sats \ 5 replies \ @Bell_curve 11 Aug
All it takes is one bear market and there will be political pressure to abandon the bitcoin reserve project
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61 sats \ 0 replies \ @grayruby 11 Aug
It would definitely be a big political issue between the party that introduced it and the party that didn't. If Bitcoin was up or down substantially from one term to another I think we would see a push to sell if the non bitcoin party was in power.
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41 sats \ 3 replies \ @Undisciplined OP 11 Aug
A big part of Bob's case is that there are real risks in holding high volatility assets if you have strong liquidity needs, even if they have a very high expected return.
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52 sats \ 2 replies \ @Bell_curve 11 Aug
Governments have high liquidity and low time preferences. In theory they should plan for the long term but they have daily payroll and expenses.
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41 sats \ 1 reply \ @Undisciplined OP 11 Aug
Politicians have very high time preference, though, since they have to deal with election cycles.
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20 sats \ 0 replies \ @Bell_curve 11 Aug
I meant high time preference!
You are right.
Politicians and governments think and act short term because of elections and the media
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