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A Crypto Reserve Fund is a bad idea
American Thinker ^ | 03/03/25 | Terry Johnson

Posted on 03/04/2025 5:53:51 AM PST by SeekAndFind

I own a small amount of crypto assets in my portfolio, so I am not against this asset class per se. I do object to the federal government starting their own reserve fund.

Crypto is a relatively new asset and we are still in the beginning stages of exploring how it works as an asset for investing. We have already determined that it does not work as a currency in the U.S. The primary reason is that you must declare capital gains or losses with each transaction.

The government should not pick winners and losers. Right now, the Trump administration wants to invest in five crypto assets. Over time tremendous pressure and lobbying will take place to add to or replace those five tokens.

The government should not be acting as a portfolio manager. Unlike the Strategic Petroleum Reserve, there is no intrinsic value in crypto assets. We would be investing in it primarily in the hopes of increasing prices. But why crypto and not a basket of top 100 stocks?

Let’s say that the best-case scenario happens, and this basket of assets is up several fold over a few years. Then what? Do we sell the assets and take a profit? Do the taxpayers get a dividend? The U.S. does not publish an annual balance sheet, so the fact that the government made a paper profit is nice but irrelevant.

Is it a rainy-day fund? I’m very skeptical of this approach given that Presidents of both parties now frequently declare emergencies whenever it suits their agenda. It would be too tempting to sell whenever the political winds are convenient rather than when it best suits the country’s long-term interest.

(Excerpt) Read more at americanthinker.com ...


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: bitcoin; btc; cryptocurrency; ftx; reserve; sambankmanfried
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1 posted on 03/04/2025 5:53:51 AM PST by SeekAndFind
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To: SeekAndFind

Afraid this is a big step to a cashless economy.


2 posted on 03/04/2025 5:57:52 AM PST by volare737 (Diversity is something to be overcome, not celebrated.)
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To: SeekAndFind

If the US had built a strategic crypto reserve 10 years ago, there would be no debt.

But hey, we spend our money so well, let’s not try something current and modern with a few bucks :)


3 posted on 03/04/2025 5:59:22 AM PST by dp0622 (Tried a coup, a fake tax story, tramp slander, Russia nonsense, impeachment and a virus. They lost.)
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To: volare737

Trump seems to like the idea.


4 posted on 03/04/2025 6:01:10 AM PST by napscoordinator (DeSantis is a beast! Florida is the freest state in the country! )
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To: SeekAndFind

Wait until AI is used to “mine” new crypto currency. When that happens the value wil approach zero.


5 posted on 03/04/2025 6:03:29 AM PST by central_va (I won't be reconstructed and I do not give a damn...)
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To: SeekAndFind

Why crypto and not stocks?

Because an asset like Bitcoin is not controlled by a country. It is a commodity, as is gold or oil.

In terms of other cryptos…most of them are trash. Trump made a billion off of his meme coin right before taking office. That was pretty much the definition of a scam coin.

In general, the public doesn’t understand crypto currencies. Stick with the ones that are boring…and that don’t serve a person, or business, or country.


6 posted on 03/04/2025 6:03:48 AM PST by Vermont Lt
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To: Vermont Lt

Bitcoin is not a commodity. It has no intrinsic value whatsoever. You can hold a commodity in your hand.


7 posted on 03/04/2025 6:11:35 AM PST by wny
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To: wny

something is only worth what someone else will give you for it.


8 posted on 03/04/2025 6:27:05 AM PST by teeman8r (Armageddon won't be pretty, but it's not like it's the end of the world or something )
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To: dp0622

If the US had built a strategic crypto reserve 10 years ago
—————
If the US had built a strategic US stock and equities( DOW) reserve 10 years ago, debt would be negligible. Trading stocks and equities has been around hundreds of years, crypto nothing of substance, stability or value, as we are witnessing with Bitcoin’s erratic behavior.

“ Money” is to be stable, not a roller coaster. There is a reason ALL the world’s Central Banks ( the BIG money) are buying Gold in historic amounts- they aren’t buying Bitcoin and in fact are prohibited from doing so.


9 posted on 03/04/2025 6:32:45 AM PST by delta7
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To: SeekAndFind

It depends. If you’re one of the billionaire class that holds much of the crypto out there, so you’re probably going to be selling to the government, at a premium, a crypto reserve is awesome.


10 posted on 03/04/2025 6:38:25 AM PST by discostu (like a dog being shown a card trick)
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To: dp0622

Nah, the government would have bet wrong, overpaid, sold in ditch. And reserves don’t actually pay anything, they’re reserve.


11 posted on 03/04/2025 6:39:22 AM PST by discostu (like a dog being shown a card trick)
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To: SeekAndFind

Yep.


12 posted on 03/04/2025 6:40:30 AM PST by 9YearLurker
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To: algore; Augie; aMorePerfectUnion; amorphous; Andyman; aposiopetic; ARGLOCKGUY; abishai; ...

(((CRYPTO PING!)))

If you would like to be on a CRYPTO PING LIST, please pm me.

The Crypto Ping List covers the following:

Bitcoin
Ethereum
Other coins built on the Ethereum blockchain mining
etc.

Thanks! For it - or ag'in it, it'll be a wild ride.

13 posted on 03/04/2025 6:47:55 AM PST by aMorePerfectUnion (🦅 MAGADONIAN ⚔️ LIFE )
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To: SeekAndFind

The article misses the point. The reserve is intended to create a store of value and utility.

Blockchain and de-centralized finances (read: NO Federal Reserve monopoly) are a wave that cannot be pushed back into the ocean. As such, Trump is securing a seat at the table for the federal government.

The SWIFT system on international funds transfers is about to undergo a radical and sweeping change. Three of the five cryptos Trump has identified are utility based in secure financial transactions and are United States based. Just as the U.S. Dollar is the “coin of the realm” as the financial industry evolves and explodes, Trump wants U.S. based crypto utilities to be the preferred track the world runs on.

The crypto revolution is similar to the advent of thee internet and email. It’s like 1993 when only a few people understood the “worldwide web” and the concept of e-mail and how it would impact allow us and change our lives. It will be a part of our financial lives as an everyday item (point of payment, store of value, de-centralized transactions, etc.) in a few short years. Trump is positioning the U.S. to be a primary player.

The WEF, Federal Reserve Bank and liberals all hate crypto and the Biden administration was aggressively hostile against the entire industry. Why? Because crypto and the security of blockchain eliminates their centralized monopoly control on money and the economy. Without that control they risk losing power.


14 posted on 03/04/2025 6:55:54 AM PST by Buckeye Battle Cry (Progressivism is socialism. Venezuela is how it ends.)
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To: Buckeye Battle Cry

The crypto revolution is similar to the advent of thee internet and email
————
Many see it as the Dutch Tulip fad. They say the older generation doesn’t get it, and we don’t. Crypto didn’t help the Florida hurricane victims, not the NC disaster, lose your computer, your password, electricity, no “ money”. it’s viewed as a Ponzi scheme by many.

With the advent of super AI computers, hacking is another concern we saw last week.

https://www.cnn.com/2025/02/24/politics/north-korean-hackers-crypto-hack/index.html

“North Korean hackers steal record $1.5 billion in single crypto hack, security firm says….”

Good luck, us older and wiser simply will never buy into it. Ever.


15 posted on 03/04/2025 7:19:49 AM PST by delta7
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To: wny

You may think that. And that is fine. But governments and a lot of banks disagree. And what they think matters.


16 posted on 03/04/2025 7:22:55 AM PST by Vermont Lt
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To: dp0622

“If the US had built a strategic crypto reserve 10 years ago, there would be no debt.”

And if the US Treasury had bet on the Eagles we’d have slashed our debt in half.

What does rear-view speculation have to do with federal poliy?


17 posted on 03/04/2025 7:26:18 AM PST by Miami Rebel (pro-)
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To: discostu

I’m surprised I made that statement. I must have been hyper :)

Reserves can’t be tapped for sale if they go up a whole, whole lot??

Not even in a government financial emergency?

I have no clue so i’m asking :)


18 posted on 03/04/2025 7:28:02 AM PST by dp0622 (Tried a coup, a fake tax story, tramp slander, Russia nonsense, impeachment and a virus. They lost.)
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To: dp0622

Important part CAN BE tapped. Doesn’t necessarily mean they will be. Nor does it mean if they are they’d be tapped in a way that’s at all useful.


19 posted on 03/04/2025 7:38:31 AM PST by discostu (like a dog being shown a card trick)
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To: discostu

Good points :)


20 posted on 03/04/2025 7:41:20 AM PST by dp0622 (Tried a coup, a fake tax story, tramp slander, Russia nonsense, impeachment and a virus. They lost.)
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