Treasury purchases of silver distorted markets, failed to achieve their inflationary goals, and contributed to economic instability — culminating in the Panic of 1893.
oopps:
Rather than fostering genuine innovation, this policy resembles past government interventions in financial markets, particularly the Bland–Allison Act (1878) and the Sherman Silver Purchase Act (1890). These nineteenth-century policies aimed to prop up silver mining interests but ultimately failed to deliver lasting economic benefits and contributed to financial instability. The Bland–Allison and Sherman Silver Purchase Acts artificially buoyed the silver market, failed to deliver broad economic benefits, and led to financial instability.
Pete describes how the crypto industry, like the silver miners back then, thinks that the gov money spigot will support their industry and innovation etc.
Moreover, cherry-picking specific assets for government backing is a perilous strategy. While Bitcoin has cemented itself as the dominant cryptocurrency, previous market leaders have fallen dramatically
Not obvious that the U.S. gov ought to do something like this (#877076).
"If the administration genuinely seeks to support cryptocurrency entrepreneurship, it would be better served by reducing regulatory uncertainty rather than manipulating markets through government stockpiling."
100%.