Lots of low IQ posts recently about “oh no they’re going to make a reserve”. Bullshit. This is never going to happen and is just the latest “pump” narrative. I’ll lay it all out for you guys
- We haven’t added to the gold reserve in 70 years
Source: https://en.m.wikipedia.org/wiki/Gold_reserve
Gold is an artifact of our previous (inferior) monetary system which was mostly abandoned in the 1930s and then completely abandoned by Nixon. Sure we have a lot of gold, and haven’t sold it but no one has seriously advocated to adding to it. Because why? People won’t have faith in the worlds largest economy unless we hoard shiny gold bars? The gold reserve is already anachronistic, a relic from the past so what are we doing repeating it? You want to go to the Fed to exchange your dollar for a fixed amount of Bitcoin? Re*arded
- What “strategy” is this “strategic” reserve serving?
We hold oil reserves to be able to keep our economy going in an oil crisis. We maintain grain reserves to have grain for a potential domestic or international food crisis. We would hold Bitcoin to …? Speculate with tax money? Buy monkey jpegs for the library of Congress? There is no benefit to holding this wildly speculative “asset”. The US achieving Bitcoin dominance is like owning the most Funko pops in the world. Like Warren Buffet said – what if you owned 100% of the Bitcoin in the world? It would be worthless
- The US would get front-run on price and then never be able to sell
Imagine if the US announced this – the price would spike through the roof. With such an illiquid asset every bonehead would suck up the supply and the US pays through the nose. Then on the sell side? Forget it, any hint of the US unloading will tank the price. It’s an illiquid market and the US is guaranteed to lose this game. What has El Salvador achieved? Nothing
- Crypto is unpopular and a blatant wealth transfer to these unbearable clowns won’t fly
Fundamentally this narrative is 100% bullshit and another flimsy idea to justify the tether-induced bullruns. Public sentiment is abysmal:
Only FIVE PERCENT of Americans think this is a trustworthy asset. 63% do not think it is safe or reliable and the rest are neutral. Crypto has a young male (reddit-centric) niche but is broadly unpopular with the general public. Tax dollars going to the gaudy crypto crowd will not fly
- The “reserve” lost 75% of it’s value two years ago
I mean really? This is our rainy day fund? Can you imagine if gold lost most of its value overnight? People may have short memories but 2022 was not long ago and this is why most people think it’s shit. Throwing the US head first into a rug pull at the top of a bull run is just inane. Might as well start the US Hawk Tuah Reserve