Cryptocurrencies rallied on Sunday after President Donald Trump announced the creation of a U.S. strategic crypto reserve.
  • orcrist@lemm.ee
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    2 months ago

    Last checked he doesn’t have that money. Am I missing something? Congress controls funding.

    • PM_Your_Nudes_Please@lemmy.world
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      2 months ago

      Or materials that take a while to manufacture, but which may be needed in large quantities relatively quickly. Even if it’s not a case of foreign actors, some things just take a while to start coming off of production lines in large quantities.

      Shelf-stable food is a good example. You can’t just grow more wheat overnight. Sure, you may be able to reallocate where resources are going to use them more efficiently or start converting more into shelf-stable versions, but your overall food production levels are going to take a long time to actually ramp up, as new crops and livestock take time to grow.

    • tburkhol@lemmy.world
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      2 months ago

      This one is meant to pay back all the cryptobros who supported his campaign. Still gotta get Congress to authorize funds for it, but the cryptobros have been pumping money into those campaigns, too.

  • PhilipTheBucket@ponder.cat
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    2 months ago

    This is, I think, an important mechanism for someone to loot the US treasury.

    Plenty of other people will be able to loot it also. It might not even be intentional on Trump’s part. But it’s a standard pattern: A massive transfer of capital into some dubious venture, followed by a mysterious implosion of the value of the dubious venture, leaving the people who were paid mountains of capital in exchange for the dubious venture-stuff smiling broadly at the mysterious outcome, saying “Them’s the breaks. Risky investment and all.”

    Crypto has the added benefit of being a lot less traceable and somewhat less undo-able after the fact.

  • KbSez@piefed.socialEnglish
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    2 months ago

    Oh yeah… that’s a great idea especially since Bitcoin has cratered in the last few weeks and people have lost over $2 billion on trumps scam meme coins.

    Sure… what could go wrong?

  • Setnof@lemmy.world
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    2 months ago

    😂 the title somehow failed to mention the 2nd most valuable crypto but named all the others. Wtf

    The ticker is ETH!

  • kn0wmad1c@programming.devEnglish
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    2 months ago

    Bitcoin lost 20% of its value in a month. It’s great for speculation, but it seems like a shitty thing to use as a currency.

    • arglebargle@lemm.eeEnglish
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      2 months ago

      Its only great for speculation if you can find more suckers to buy in. Apparently the public are going to be forced to be the suckers.

      • Raiderkev@lemmy.world
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        2 months ago

        I’ve said it before, and I’ll say it again. Russia probably has a shitload of BTC to get around sanctions, and are going to rug this stupid Bitcoin reserve.

      • atzanteol@sh.itjust.worksEnglish
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        2 months ago

        That’s not what makes a currency stable. The Fed wouldn’t need to work so hard if that’s all it took.

      • Voroxpete@sh.itjust.works
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        2 months ago

        Why? Because a whole bunch of it is locked up somewhere? That’s already the case for bitcoin. Only a tiny fraction of the total supply actually moves. The vast majority is either in abandoned or lost wallets, or being held.

  • rc__buggy@sh.itjust.works
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    2 months ago

    “Bitcoin is dangerous because it’s trying to create a level of credibility to unreliable and wholly unfounded value”

    -Trump

    Fundamentals haven’t changed, Donny. Why the flip-flop?

    edit: but I sold my BTC @ $20k so I guess I’m the dumb one.

  • turnip@sh.itjust.worksEnglish
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    2 months ago

    Stocks can be replaced by other stocks and eroded by taxes and regulation, new gold can be mined as new reserves are found and technology develops, but what can create new Bitcoin except one specific asic?

    As far as why people would want a currency like Bitcoin with a fixed supply, Project 2025 which Trump is clearly following, talks about mandating the Fed to grow the money supply at a fixed 3% a year; which is a Milton Friedman conservative idea.

    This supposedly stops the wild speculation into assets like housing and the cantillon effect, which then requires large bailouts, which causes moral hazard. As it also hurts the poor and the young, who are gatekept when trying to actually utilize the housing for procreation instead of capital preservation, causing fertility rates to fall as price to incomes continue to rise.

    Solana and the other shitcoins should probably not be part of this though. That’s where it is clearly a gift to his donors, who made his Trump grift coin.

    • RandAlThor@lemmy.caOP
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      2 months ago

      First he creates his own crypto out of thin air worth billions. Then he’s going to make US gov’t and tax payers buy his fantasy value currency with real money? You can’t a clearer day light robbery than this!

      • teft@lemmy.world
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        2 months ago

        You’re forgetting the final part of the plan. Take those dollars and exchange them for gold or a different currency so that when the dollar implodes you still have all your loot.