I think that's a flavour of a very realistic scenario.
I don't think the US would go straight to fully backing the currency, and they probably wouldn't 100% confiscate either.
Much of bitcoin's value is that it's widely owned as emergent money, so it would be self defeating to take all of the ETFs. Better to impose some kind of limited "one time currency swap" at a nominal profit for ETF holders, plus give a future date so that self custodial holders get tempted to buy the ETF too and fall under closer control of the USG.
Then they just need to keep it at the treasury as one of the assets counter-balancing the national debt. They don't need to balance/remove all the debt, just enough to buy a few more years of credibility. They still have their future USD (now inflated) tax cash flows to set against the rest of the (not inflated) debt.
gunson / Gunson
npub1pn…t2xn0
2024-05-22 08:21:05
in reply to nevent1q…auz3
Author Public Key
npub1pn9xyqt934wesguuz5g77sp9vtlh6ujyd7eqr2x3s47rncmfe8aqxt2xn0Published at
2024-05-22 08:21:05Event JSON
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"content": "I think that's a flavour of a very realistic scenario.\n\nI don't think the US would go straight to fully backing the currency, and they probably wouldn't 100% confiscate either.\n\nMuch of bitcoin's value is that it's widely owned as emergent money, so it would be self defeating to take all of the ETFs. Better to impose some kind of limited \"one time currency swap\" at a nominal profit for ETF holders, plus give a future date so that self custodial holders get tempted to buy the ETF too and fall under closer control of the USG.\n\nThen they just need to keep it at the treasury as one of the assets counter-balancing the national debt. They don't need to balance/remove all the debt, just enough to buy a few more years of credibility. They still have their future USD (now inflated) tax cash flows to set against the rest of the (not inflated) debt.",
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