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Some Musings on the Complex Question of Bitcoin's Utility.open.substack.com/pub/inbitcoinwetrust/p/some-musings-on-the-complex-question
290 sats \ 5 comments \ @IamSINGLE 17 Feb bitcoin
A strategic Bitcoin reserve only makes Bitcoin useful for the government, not for individuals. Institutional adoption only makes Bitcoin useful for a privileged few. What makes Bitcoin useful for everyone is its use as an MoE in everyday life. What makes Bitcoin useful is the promotion of a circular economy based on the Bitcoin system.
Absolutely correct.
Or, a Bitcoin Strategic Reserve can be beneficial for the individual in any way?
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19 sats \ 3 replies \ @Undisciplined 17 Feb
SBR could be beneficial to individuals for a few reasons, some direct and some indirect.
  1. The greater purchasing power that would result from reduced supply would lead to a wealth effect for bitcoiners. That would likely lead to more usage of their bitcoin.
  2. The stamp of government approval may sway some merchants to begin accepting bitcoin.
  3. The government holding bitcoin gives them an incentive to not attack it, because that would crash the value.
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60 sats \ 2 replies \ @IamSINGLE OP 17 Feb
Good points. Do you think these benefits outweigh the negative points that SBR brings in?
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19 sats \ 1 reply \ @Undisciplined 17 Feb
Not sure, but I do expect whatever happens to be good for bitcoin.
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30 sats \ 0 replies \ @IamSINGLE OP 17 Feb
Ok. Let's hope for the best. I'm very negative about it, maybe.
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0 sats \ 0 replies \ @Solomonsatoshi 17 Feb
The danger is that Bitcoin redefined and predominantly used as a speculative commodity steadily erodes Bitcoin use and utility as a MoE. This is exactly what is happening and this puts control of the protocol increasingly into the hands of governments and institutions. Within a few years US domiciled ETFs and institutions will hold custody of most of the Bitcoin ever issued. Already it would be fair to estimate that the vast bulk of Bitcoin 'in circulation' is not- it is held in cold storage or institutional custody as a passive speculative commodity. The higher the ratio held in institutional custody the more effective (and justifiable) a ban on private custody becomes. With KYC and tax obligations already in place in most jurisdictions use of Bitcoin as a MoE is already impractical for most people. The capture and control of Bitcoin is well advanced yet most ignore this reality blinded by nominal and anticipated paper gains. Most people will apparently sell their freedom for the price of a Big Mac and a coke.
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