Bitcoin is a strategic tool, not XRP

New suggestion submitted by US securities and exchange commissions (sec) newly established CRIPTO WORKING GROUP Maximilian Staudinger makes the CSRP case as a “strategic financial asset” for the United States (using some very questionable mathematics and logic).

I’m here to tell you that XRP is not strategic property and that the logic in this proposal is doubtful.

In the proposal, Staudinger states that in the US is $ 5 trillion locked Nostro accounts (Accounts used by banks for cross-border payments). And he claims that if certain regulatory conditions were created – including the CSRP US Department, and to use the US Government at Bitcoin, and that CSRP should be KSRP in Bitcoint in Bitcoin.

So let’s break down why it makes little sense.

First, Nosorro accounts are simple bank accounts that American banks keep in foreign countries. I am not sure what logic includes these domestic banks that turn to US dollars that the KSRP will be replaced by the Federal Government, so that these dollars can be used to acquire bitcoin on behalf of the government.

Second, the proposal does not offer details about how these domestic banks would get the KSRP that would replace dollars. It seems only logical that they will have to buy XRP, which leads to KSRP absorbing this $ 1.5 trillion, not Bitcoin. Even if Ripple, XRP’s issuer, wanted to simply give these banks XRP to use, it wouldn’t work yet $ 100 Billion in XRP – Far from $ 1.5 trillion.

Third, even if the Bitcoin price would die at $ 60,000, the price would immediately increase because the US government began buying 25 million Bitcoin.

And finally there is a solid cap of 21 million bitcoin (and Approximately 4 million is lost), which is a well-known fact in Bitcoin or crypto space. It is therefore pretty silly to propose that the US government could buy 25 million Bitcoin. If the author would be even a semi-serious person, he may have suggested that the government buys 15 million Bitla to $ 100,000 per Bitcoin (although mathematics would not yet succeed).

Given how defective the logic of this proposal is, it is difficult to consider the KSRP strategic tool. In addition, why would the American government do this when two thirds of the offer still in the hands of the organization issued property? That doesn’t make much sense.

On the other hand, Bitcoin is a globally distributed agent that many worldwide also use as money and value stores. Plus, the Bitcoin network runs Tens of thousands of knots and practically unchanged, thanks to approximately 0.4% of world energy It protects it. (XRP network manages 828 knots and is not protected by any amount of energy.) Thesis factors make Bitcoin and logical reserve funds, which is as American government now officially classifies it.

So, we hope, the moment already understands what I put in this piece and does not spend much time even considering Mr. Staudinger’s suggestion.

This article is a Pick up. The reported opinions are fully authored and do not necessarily reflect those from the BTC Inc or Bitcoin magazine.