Fuck this strategic reserve nonsense.
Dumbasses are simping for politicians, saying that this is a good thing. Not realizing that it's just yet another attempted regulatory capture of Bitcoin.
L0la L33tz
David Bailey just posted the draft for an executive order for the Bitcoin Strategic Reserve under Trump – and it's an absolute nightmare for anyone using bitcoin as money.
First, the draft order defines Bitcoin as "a finite store-of-value asset, akin to digital gold."
As someone who has lived on Bitcoin for a fairly long time, I can say that Bitcoin is not merely a "store-of-value asset", but a money for payment and day to day purchases.
Defining Bitcoin as a "store-of-value asset" reinforces the ossification narrative (who needs to move a stonk several times in a day?) which may put developers at risk when prioritizing changes to btc to make it more usable as money (think scaling for example).
With this definition, a softfork to activate covenants may become an issue of US national security that goes against the US' definition of its primary goals - directly putting developers in the firing line of the United States Government.
The draft states that federal agencies, such as the US Marshall's Service, may not auction seized Bitcoin off, but must contribute them to the strategic reserve.
This not only reduces the Bitcoin in circulation available to the public, but additionally sets the incentive for the US to increase its seizing efforts – think increased AML/KYC.
While I'm no fan of the strategic reserve in general, this draft is an even bigger disappointment than Sen. Lummis' proposed Bitcoin Act.
To compare this to how El Salvador has implemented Bitcoin, which I admit I initially wasn't a fan of either, ES directly gives citizens rights to use Bitcoin as money - which is a huge upside to benefit the people, and not just the national security state.
No offense, but letting a couple of children that just graduated college and a guy who runs a magazine draft US policy is a scene straight out of idiocracy.
Next time, maybe try speaking to the people actually building and using bitcoin, not just to the boomers and national security goons that sit on the money like a fat kid at the cake buffet.
Incredibly unprofessional conduct here by BPI, a huge risk to anyone using Bitcoin for anything other than an investment, and a testament to the people involved being more interested in furthering their own importance than to empower people with a money without state.
Sincerely hope that this EO is drastically challenged on all levels and hopefully somehow deemed unconstitutional to protect btc and the people developing it.
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Replies (16)
Yeah it's stupid, they are building a financial prison and bitcoin maxis are clapping and cheering them on, they seem to have forgotten the p2p digital cash aspect and only want to see it as an asset like gold or something.
Not to mention it is the State choosing to appropriate a commodity to use for its own benefit.
bUt tRuMp SaId orAngE cOiN gOoD. wE aRe WiNnInG
Bitcoin is for everyone. Hence everything divided by 21M. That includes governments, bad actors, and corrupt politicians.
It is imperative the cypherpunks and ungovernables stand strong, even if amongst ourselves in our own black market circular economies. We must grow our numbers to claim ultimate victory and the future we speak of. It will not be given. It must be earned. People will need to put in the work.
Barter and trade. Trunk to trunk. At Bitcoin meetups. Community events. Local farms and businesses. Virtually through secured channels. Meshtastics and meshtadels. Whatever game theory requires.
Be willing to be different. Get comfortable being different. It's going to be a long road for real victory.
NGU is fiat victory proclamation. It enables the breaking of fiat chains, which can provide the ungovernables and cypherpunks the time freedom to grow our army.
US government will adopt bitcoin for its own benefit not the benefit of its citizens. Not surprising really.
Frustrating, but not surprising. We'll see what actually ends up happening. I'm having trouble finding links to the full executive order so I could read the entire thing, not just the screenshots posted.
Unless of course it is the whole thing.
The only mutual benefit will be the price if they buy a significant amount. The fact that they are calling it digital gold is also not surprising they will under no circumstance help to destroy the dollar they will only use it in a way to strengthen the dollar and in turn the US government’s supremacy.
So far from what I can read from that bill, it is treating it pretty much like gold. It stops the sales and auctions of Bitcoin, so all the Bitcoin that the Fed still holds can't be sold off. And it allows U.S. debt to be paid back in bitcoin if I understand the wording of the eo/ draft correctly.
Specifically, it says it authorizes the Secretary of Treasury to deal in instruments of credit and the Secretary is hereby directed in a matter consistent with obligations under the law to allocate no less than $21 billion from the ESF for the strategic procurement of Bitcoin for the inclusion of the SBR through purchase of debt obligations from suitable counterparties with repayment denominated in Bitcoin."
The other stuff seems pretty run of the mill, like establishing missed standards for custody and security.
I kind of take issue with it being treated specifically as digital gold and not necessarily as money. But so far there's nothing in the executive order that specifically says you cannot use it as money, so I'm starting to think that Ops Post is a little bit reactionary. And maybe my own as well, but I guess that depends on other laws and regulations that come as a result of the executive order.
Overall, I guess. As long as they can't actualy stop people from using Bitcoin how they choose, then I'm not sure if it really matters what the government does.
I didn’t read so thanks for the summary. None of this sounds surprising to me. If anything about the bill does not directly or indirectly benefit the US gov and the dollar it will not be signed doesn’t matter who is president. Calling it money threatens the US dollar the US government will not threaten their own dollar.
Fair point.
The cool thing about bitcoin is even if your enemy adopts bitcoin you both benefit. This economic incentive bitcoin is so strong and that is why govt will adopt it. If they don’t they will be left behind.
I still see this as a stepping stone towards an atempt at more regulatory capture, but I guess It's just another test of Bitcoin's resiliency as long as they can't stop you from using it how you want, like I said before.
I think it’s being blown out of proportion myself.
Yes they will try but you can only regulate your citizens you can’t regulate bitcoin. They will see what they can get away with but the more individual citizens become bitcoiners the harder it will be to effectively regulate. If you go to far you drive entrepreneurs and bitcoiners off shore to friendlier jurisdictions. And jurisdictions will flip depending on party politics and who is leading a country in a certain time frame.
If they do buy enough for a reserve, how would that allow them to control? Honest question.
