103 sats \ 1 reply \ @freetx 7h \ parent \ on: Be careful what you wish for: Bitcoinization can and will have huge implications bitcoin
Well we don't know the future so either we are 1999-2000 and our big moment was the ETFs.....of we are 98-99 and our big moment is Bitcoin Strategic Reserve announcement.
Honestly, I think the BSR idea will happen...eventually. However, to be honest, I think it makes more financial sense for the Federal Reserve to decide to hold bitcoin rather than the Treasury / US Gov itself (obviously they could both decide to hold BTC).
Bitcoin would serve as a natural counterbalance to the Feds balance sheet....the problem they have now is their entire balance sheet (except for the gold holdings) is just other forms of debt. So they hold US Treasuries as their "asset"....but it all becomes a messy circular loop of debt. In order for them to get more "assets" the system must take on more debt, the increased debt then makes existing bonds more suspect, etc etc.
BTC being a "pure asset" escapes this cycle. There is a long-story to this, but this was originally the goal of holding Gold...it would be a pure asset that would automatically expand in value as monetary base increased....but Congress passed a law in early 80s forcing the Fed to value its Gold permanently at $42.22 per ounce. Congress did this because they were concerned that there was an incentive for the Fed to keep printing but remain solvent....so they stepped in to limit the value of their gold holdings.
The Fed could side-step the entire issue now and just hold BTC....