He already declared he is considering creating a US strategic reserve of bitcoin and other crypto currencies. Where would he get the money for this? Selling bonds?
Who knows. Do you think Donald came up with this idea and understands how to do it? I file this one under harebrained ideas that will likely never come to fruition.
It is unclear how the government would go about buying a “strategic reserve of bitcoin and other cryptocurrencies”. While the government certainly does buy commodities (agricultural goods, strategic mineral and energy resources, et cetera), and even finished goods such as medical equipment and pharmaceuticals to provide a strategic stockpile, purchasing some kind of speculative ‘investment vehicle’ such as cryptocurrency or ‘meme coins’ is essentially unprecedented. The government would presumably have to issue a massive amount of debt in order to purchase a significant amount of cryptocurrency, and the people who are holding cryptocurrency are doing so specifically because they want a greater yield and can tolerate the volatility and risk of a ‘commodity’ that really has no fundamental basis of value beyond market speculation, so it seems doubtful that they would be interested in trading for T-bills and notes (which are chosen by investors for stability over yield), especially backed by an entity which would then itself be heavily invested in cryptocurrency.
In fact, the only possible benefit to this is that the US government would be so heavily leveraged on the the value of ‘crypto’ that they would intervene in the comping collapse of cryptocurrency markets, thus making the affected cryptocurrencies a kind of de facto government-backed security that they is “too big to fail”. Which, frankly, is the entire point of this proposal; to make this anarcho-libertarian “free of government fiat” currency backed by the faith and credit of the world’s most powerful economic superpower that nearly everybody else pegs their currency to (directly or by proxy), because that scam is becoming increasingly played out and cryptobros want to run home to mommy before the bottom falls out.
Donald Trump definitely did not come up with this. This was Peter Thiel, whispering through J.D. Vance and/or Elon Musk (whomever has Trump’s ear at the moment) telling him how this will be a cure-all that he can also personally profit on and wash the dirty money people will be paying him for influence. Still, the Treasury can’t issue this kind of debt without Congressional authorization, and I’m sure that the Republicans in Congre….well, I’m not sure about anything at this point. But this is basically the plot out of a Neal Stephenson novel treatment that his publisher rejected because “This is too ridiculous and lacking in coherent narrative even for you, Neal.”
Stranger
My reaction would be that millions of people will end up starving and homeless. And probably machine-gunned by the thousands when the food riots start.
You should really take a break from that ‘Seventies Charleton Heston movie marathon at some point before the Statue of Liberty somehow ends up in the ocean just off of Point Dume:
Stranger
FYI, the US Government is believed to already hold roughly 200,000 bitcoin (seized from Silk Road and other places). And I’ve read articles that suggest that the bitcoin reserve will somehow help in competing with China, though I don’t see how.
Creating a bitcoin reserve is generating a way for his silicon valley supporters to sell off their BTC holdings. Just a giveaway of state resources to the private sector.
This is what I think. Just more wealth transfer from the American taxpayer to the wealthy. I expect the rate to increase by at least 4x over the next 4 years.
Hear me out, how about we invest the Social Security trustfun in Trump steaks?
This one has a more much more credibility because the US has historically stockpiled agricultural commodities in the event of emergencies.
I’m not aware of the need for a critical national stockpile of shoe leather, and. despite the celebration that “Trump Steaks” have received over the years, it was one of his shorter failed business ventures, only lasting from May to July of 2007.
Stranger
How about Trumpy bears or Trump bibles?
Surely there’s something to investing our SS trustfund into Trump assets, we just need to flush it out a little more.
We might as well try to increase revenue by making bets with the government’s money at a roulette wheel.
As long as I get to keep the winnings, I’m game.
I think my gut reaction would be ‘Oh, another famous person orchestrating a Crypto Rug-Pull scam’
It’s pure hype, like everything else around cryptocurrency. Crypto is pure scam, it needs the hype since there’s no reason to use it in the first place besides scam and criminal transactions.
People aren’t supposed to think "How will cryptocurrency help against China"; they are supposed to think "Cryptocurrency is The Future and will help against China and make me, personally rich! Rah! Rah! Rah!"
If there really might be such thing as a unicorn fart, and if I could make a believable claim that the jar in my hand contained one, I suppose I could be rich too.
Oh, the first condition isn’t really necessary.
Trump has a long history of failed schemes…that have hurt many other people.
So even his crappy ideas piss me off.
You would think, after the exact same graph (below) had been seen a few times, in the context of exciting new crypto promises, that people would just laugh and keep their money, but apparently not.
