I can’t think of any. The current oil reserve is supposed to be used in the case of another oil embargo. But its actual use is to lower gas prices when the administration in power needs a political win.

I actually think the purpose of a Bitcoin reserve is to temporarily increase the price so tech-bros (re: Elon) can sell at a massive profit. Then buy back at a much lower price. It’s just a way to indirectly transfer federal dollars into administration pockets.

I can’t find any reason for the government to buy crypto and hold it in reserve.

  • humanspiral@lemmy.ca
    45·
    1 day ago

    temporarily increase the price so tech-bros (re: Elon) can sell at a massive profit.

    Actually it is similar to gold reserves (bitcoin is better) without advantaging competitor nations that have gone in on gold reserves already. There is an energy/mining motivation aspect as well as a populist widespread participation.

    In terms of “real purpose”, US debt can grow much more unsustainably, and there is something to fall back on when a default occurs. The tech bros that helped Trump do want to use other crypto projects for fintech and other innovation, rather than pump it and dump it.

    • deathbird@mander.xyz
      52·
      22 hours ago

      Bitcoin isn’t gold or oil.

      Gold is a thing. It has some utility. You can make other things with it. You can reprocess it into different things.

      Oil is a thing. It can be burned as fuel, or made into other things.

      Bitcoin is a ledger protocol with limited entries. It is good for peer-to-peer transfer of cash, and speculation. The speculation aspect is a pyramid scheme though, as it’s only backed by the hope that people keep paying more for the ledger spaces, which undermines its function as a medium of exchange, and is unlikely to last as alternative ledgers are abundant, including those that are better suited for private exchange like Monero or ZCash.

      Lacking intrinsic value, the only reason to create a strategic reserve of Bitcoin is like that of any other foreign currency. So, market manipulation? A lack of stability in your own currency (but Bitcoin is mostly USD backed)? International exchange (but USD and Euros are better)?

      There will never be a default on US debt unless it’s by choice. US debt is in US dollars, which the US makes. There will be inflation. Goods may end up being exchanged in another national or international currency someday. It won’t be Bitcoin.

      • humanspiral@lemmy.ca
        21·
        12 hours ago

        The jewelry and industrial value of gold is minimal to its reserve value. Vast majority of gold is in form of bars sitting in national vaults. Zero intention of ever using those bars for jewelry/industrial applications.

        Bitcoin’s advantages over gold include

        1. proof, security, and cheapness of reserves including greater protection from war pillage.
        2. Cheaper and secure transactions. war, piracy, shipwreck proof. Divisibility is also a transactional advantage.
        3. wealth escape options, including banking/sovereign failure and sanctions.
        4. Cryptographic applications and protocol extensions including layer 2. But other crypto networks depend on bitcoin.
        5. Better “tokenomics” than gold. Mining supply of gold increases when prices rise, and also attracts jewelry owners to trade in their jewelry for it to be melted. New reserves always possible finds.
        6. Points 2 and 3 also make for faster and more secure banking system settlements. You don’t need to rely on counter party bank not declaring bankruptcy for next 3 days.

        Bitcoin is mostly USD backed?

        No. You can buy bitcoin miners in bitcoin. Electricity costs are always charged in local currency.

        There will never be a default on US debt unless it’s by choice. US debt is in US dollars, which the US makes. There will be inflation. Goods may end up being exchanged in another national or international currency someday. It won’t be Bitcoin.

        QE worked last time because China helped QE by also buying up US bonds. A much larger QE with US at war/tariff war with whole world will put USD at a credibility crisis, if not in next recession then the one after that. Fractional banking is the real ponzi scheme, and a banking crisis, a property collapse that causes bank collapse. Colonial currencies are not an option to escape USD devaluation, unless they free themselves from servitude. Chinese policy has so far not embraced strong currency value. Bitcoin will always be protection from financial collapse/decline.