[sega_sai]

While I completely agree crypto is full of shysters and most likely crypto has zero intrinsic value, as well the current administration tries to enrich itself through crypto, I disagree that recent change in prices after announcement proves it is a scam. Because if the government would have announced a strategic reserve in maple syrup, the syrup futures would have increased in price drastically as well.

[schwarzrules]

Was curious if a maple reserve existed. looks like Canada is leading the charge on that one: https://ppaq.ca/en/sale-purchase-maple-syrup/worlds-only-res...

[Eddy_Viscosity2]

Strategic reserves for actual physical commodities makes some sense. Then can reduce the volatility in markets due to sudden unexpected market shocks. In the case of maple syrup that might mean a stretch of really bad harvests.

But digital currency is made up. It isn't 'needed' for anything. So there is no sense to have a strategic reserve.

[JumpCrisscross]

> there is no sense to have a strategic reserve

FX reserves. (Doesn’t apply here. But stockpiling social constructs can still make sense.)

[Eddy_Viscosity2]

I think the closet example here would be if the Federal Government had started a "beanie babies" strategic reserve back in the 90s.

[sadeshmukh]

All currency is made up, and even physical reserves (gold) have very little intrinsic value. Bitcoin is just another one.

[Eddy_Viscosity2]

Yes, this is true. The federal government already has the US dollar. It does not need "another one". Why would it?

[desumeku]

It's not about "needing" another one. The "other one" is already here, whether you think you need it or not. Will America play the leading role in how the world reacts to its existence, or will someone else beat them to being first? The answer was already decided. Welcome to the future.

[Eddy_Viscosity2]

Beating them to being first at what? The first to sink taxpayer resources into buying the latest meme coin? The first to provide a taxpayer funded bailout for crypto-bros? This is precisely the sort of 'waste and corruption' that the new administration should be getting away from, not diving into.

[wolfgang42]

Famously subject of the biggest heist in Canadian history: https://en.wikipedia.org/wiki/Great_Canadian_Maple_Syrup_Hei...

[kolchinski]

Oh yeah agreed that the change in prices doesn't prove it's a scam, my thought was more along the lines of - when crypto insiders who have been talking up crypto as valuable/important because it's independent of the government quickly change their tune and cheer on government intervention when it goes into their pockets, it makes it pretty clear what the dynamic actually is.

[desumeku]

Lumping an entire industry into a single convenient strawman isn't very good for you.

[s1artibartfast]

Intrinsic vale is not a prerequisite for utility. USD has no intrinsic value. Yes, you can pay your taxes with it. That is a contingent value.

The only intrinsic value of crypto is that it can not be unilaterally inflated away, and can be difficult to digitally seize.

In this respect it is similar to gold. It lacks the physical uses of gold, but is easier to transport.

No, I don't think the US government should invest in it. It should make sure it's own currency retains value.

[RealStickman_]

USD is backed by the US economy and a significant portion of global trade.

BTC is backed by hopes, dreams and market speculation.

[desumeku]

Correction: The USD is backed by a ponzi scheme where people who put money in have to rely on the USA being able to get more out to pay debt. If it fails at this at any point (which has nearly happened dozens of times!) then the entire thing collapses and suddenly the "world reserve currency" isn't as much "currency" as it is pieces of paper and digital ledger entries. Ironic, isn't it?

[s1artibartfast]

What point are you making in relation to what I said? USD can still be devalued.

[RealStickman_]

My point is that the USD has some inherent value, while BTC has none.

[s1artibartfast]

I think BTC has some advantages in the attributes I described in my parent post.

Inherent or not depends on how far are you willing to stretch your assumptions.

[JeremyNT]

This is actually a re-announcement of something already announced!

The only difference here is mentioning of specific cryptocurrencies.

Prove? That's a high bar to clear. But this is a spike at merely reiterating a bailout plan.

[77pt77]

> crypto has zero intrinsic value

So do fiat currencies.

[citadel_melon]

USD is used and is useful for transacting — especially in global markets — because of its high trading volume, stability, limited/no capital flow restrictions, federal reserve’s monetary policy to favor neither exporting or importing (meaning they will not chose to intentionally deflate or inflate the dollar’s value to favor/disfavor certain industries), and also USD’s global acceptance.

On the other hand, people don’t usually transact with BitCoin because of its volatility and because BitCoin’s currency deflation. I’m also almost certain Bitcoin protocols couldn’t keep up with global transactions even if the currency did stabilize. One last point (there are way too many to write them all here) is that there will be no incentive for people to verify blocks when all 21 billion coins are completely mined.

Bitcoin is a game of betting there is a bigger sucker who comes after you. Bitcoin whales realized that the government is the biggest sucker of them all. It’s ironic to me that they have lobbied so hard for the government to subsidize their assets when they have been preaching libertarian idolatry for years.

[mcosta]

The USA military/industrial complex does not agree.

[arbitrary_name]

You need fiat to pay your taxes.

[bdangubic]

or go to jail :)