Strategic encryption atom – Atlantic Ocean

IThe most famous Between the election and installation of Donald Trump, the prices of coded currency increased on speculation that the president will appoint two psoriasis organizers for encryption and create a “strategic bitcoin reserve.” Trump has handed him over to the organizational front: The Securities and Stock Exchange Committee has a new profit delegate, and it has been dropped or stopped lawsuits against the exchange of encryption. Trump also issued an executive order in his first week calling for an assessment of “a possible creation and maintenance of national digital assets.” However, encryption prices fell sharply after taking office; the The slide intensified In the past two weeks. This has caused great discontent among the main supporters of Trump in this industry. So, in what Certainly it seemed as if In an attempt to stop the decline, Trump moved to social media during the weekend and promised that a “Strategic Reserve for encryption” It will be soon on the way, and that the government will fill it not only Bitcoin and Ether

Trump’s announcement was initially the required effect: Bitcoin and Ether prices increased by more than 10 percent on the news, while the total value of encryption assets Jump More than 300 billion dollars. But throughout yesterday, many of these gains have been given, partly due to the uncertainty about what Trump was exactly and whether he could provide it. The government has already owns about $ 17 billion in Bitcoin, another $ 110 million or so in the ether, most of which were seized by criminals; It will be one of the options until these assets are sticking. But what the encryption defenders want, and what it seems that Trump is promising, is for the government to fill this new strategic reserve by buying billions of dollars encryption.

What they hope, in other words, is a bulletin for encryption holders-or from the point of view of heterogeneous Americans, a wrong government of purely speculative assets. The filling of the coding reserve is a significant transfer of wealth from taxpayers to Hodlers encryption (nickname derivative From a joint internet error error Hold, It is also said to defend “adherence to dear life”). This is a very bad idea, especially while the Trump administration, in the name of efficiency, divides other government programs and spending.

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R.It is the phrase Strategic coding reserves (Or, more common, Bitcoin strategic reservesOf course, it aims to draw a parallel between this supposed encoded treasure and the strategic petroleum reserve, a stock that the Ministry of Energy maintains consisting of hundreds of millions of oil barrels. The real strategic reasons for the government’s presence have a clear oil reserve: oil is necessary for the American economy to work. In the event of an oil embargo, such as one in 1973, or the severe disturbance of the oil supplier chains, the strategic reserve historically helped keep things (even if the growth in local oil and gas production has now made the United States less vulnerable to such shocks).

On the other hand, the government does not have a strategic reason for possessing encryption assets. They have no value, whether to the United States government or the US economy. We can live without them. Crypting advocates indicate the fact that the United States holds foreign currency reserves, and has a large group of gold as well. But the United States actually holds a very little foreign exchange money, and the foreign currencies it owns is detained in the event of its needs, or it wants, to exchange it for dollars-as a hedge, for example, against the situation in which the dollar decreases sharply and the government buys its own currency to support its value. This is a very unlikely scenario-the United States has never used the foreign exchange treasure to enter the decrease in speculation in the value of the dollar-and in any case, there is no such use of Bitcoin or other encryption assets.

As for the American Gold Holdings, it is mainly meaningless: Fort Nox is a legacy in the days when the United States promised to exchange gold for dollars upon request. Today, the United States clings to gold only from stagnation – and perhaps the desire for the market not to collide by throwing hide Golden Standard It is something. Nothing of this is an argument for adding a new set of digital assets.

Crypting defenders also argue, in mysterious circumstances, that the United States has large bitcoin stores and other encryption assets that will enhance the dollar. But the dollar is the Fiat currency, which means that its value does not depend on supporting any government assets. More than that, Bitcoin has been created as a substitute for the dollar, not support for it. Away from strengthening the dollar, the purchase of billions of US dollars in assets that were created to be alternatives to the dollar will be at best economically meaningless, and in the worst case the confidence in the dollar will weaken. Nothing says, “We are concerned about the future value of our currency,” like buying alternative currencies of billions of government dollars.

What the encryption advocates really mean when they say that purchase of encryption will enhance the value of the dollar is that encryption prices will continue to rise, which will make the United States richer. But any gains in the value of the encryption hideout will be trivial for the size of the US budget. Either way, the government’s demand for betting on very volatile assets is the reckless use of taxpayers. What next – Federal Sports Ministry?

To date, Trump has been hidden, if it is permissible to speak, on how to get encryption reserves. Some plans, for example, calls on the government to sell some of its golden reserves to pay for assets. However, any acquisition of encryption assets will require the government to devote financial resources for encryption that can be used otherwise – to reduce the budget deficit or spend government programs.

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toAST, but not at leastThe encryption reserves will be a ready -to -corruption way, which creates a tremendous conflict of interests in organizing companies and government policy in general. Its inclusion in the government reserve will be a big boost for the assets of encryption, especially the less firm assets. This will create great financial incentives for Crypto Bros to try to win the good with Trump, who has a large share in MEMECOIN $ Trump. Adherence to the government to purchase encryption would mainly strike the accumulated interests of its administration.

All this is hardly a surprise coming from Trump, who are genetic rule and self -definition as a means of life. In this sense, it may not have any risks of reputation, but the United States government certainly does it, as a source of religion, as well as the last resort credit. The embracing of the encryption reserve speaks to the way Bitcoin and its peers evolved from being revolutionary alternatives to the traditional financial system to more than just speculative compounds; Now the encryption lounge is required by Uncle Sam, amplifying and supporting its prices. The government-backed coding backed-one of which makes the government itself an easy sign.