If a U.S. State Actually Held Bitcoin, would it be Progress or Suicide?

[mv1986]

The point against holding Bitcoin instead of spending makes no economic sense because increasing adoption of a network with a fixed unit supply automatically leads to the network value to increase. When something increases in value, or put differently, is expected to further increase in value over time, holding is the preferred action to take.

in an extreme case it does. If everybody or majority chooses to hold Bitcoin rather than spend it, it would affect the returns of miners and many wouldn't be able to to keep up.
And we know how that would pan out for Bitcoin.

Your set of assumptions falls short of grasping the full complexity of "skin in the game" in the Bitcoin network. What I described is not an extreme case, it is standard economics. But that principle doesn't imply "everybody" will hold, it implies that more Bitcoin will be held or bought than sold. it is not like transactions would dump to zero. But assuming transactions drop drastically and along with that miner rewards, then you will either see mining operations shift to places where energy is less expensive, or hash rate to drop, network security to drop and now price expectations will adjust and more people decide to liquidate or spend their Bitcoin, increased number of transactions leads to increases mining rewards, more miners will start operating again. Even my summary is just a very rough, incomplete summary.

Since you probably suggested that Bitcoin will crash into oblivion when you said

And we know how that would pan out for Bitcoin.

it is not going to happen for that reason. This doesn't mean that limited intentions to spend or transact Bitcoin could somehow be a bottleneck for network expansion, but it will neither mean the end of Bitcoin. One counter example is gold: nobody uses gold to pay anything, people hoard it and while gold is not dependent on a security algorithm being held up by miners, it is a weakness at the same time for gold as there is no verifiability, no mobility and many other aspects that make Bitcoin strong.

Ultimately, Bitcoin would still be doing well even if the hash rate drops by a bit.

[rby]

They have been manipulating their fiat and using inflation as an excuse. If it is just 1% of the reserve, why not? It will favour the government than the fiat they are holding. The real money are bitcoin, gold and other appreciating assets.

Fiat does not appreciate unless you allow banking institutions to trade with them and return fractions of the interest and that's why I'll wholly back the government of my country to hold Bitcoin that's very appreciative than holding fiat. Just like you said, storing public values in Bitcoin, gold and other appreciating assets will always be a better option than investing in

[target]

Their government fumbled. Untested asset when Bitcoin have been around for more than a decade and they couldn't see it how it is now?

I bet they folded when the national government told them to shut down that proposal and just follow them. Ofc the national government wants all the state to keep together but ones one state becomes richer than the other, there may be time that Arizona would lead the exit the US if they just didn't vetoed.

[philipma1957]

Guys fuck Arizona

New Hampshire

the “live free or die” state now has a BTC reserve

Now the car license plates all read “live free or die”

but they use prison labor to print the plates.

So they are a bat fuck crazy state.

I have zero issue with them holding BTC

they are not the feds.
they can not print money
any state that wants to hold a few hundred btc in a reserve should do it.

The issues with btc are not the getting it or holding it. the selling of it is the problem.

Every state in the USA arrests and convicts people and they grab assets all the time.

So they can simply say the Government will hodl all BTC grabbed in 2025. until 2030.

the state will conver all other crypto grabbed in 2025 to btc and hold till 2030.

in 2030 if btc is up 25% shall be converted to cash.

it is now a done deal NH has a BTC reserve

[ultrloa]

Guys fuck Arizona

New Hampshire

the “live free or die” state now has a BTC reserve

Now the car license plates all read “live free or die”

but they use prison labor to print the plates.

So they are a bat fuck crazy state.

I have zero issue with them holding BTC

they are not the feds.
they can not print money
any state that wants to hold a few hundred btc in a reserve should do it.

The issues with btc are not the getting it or holding it. the selling of it is the problem.

Every state in the USA arrests and convicts people and they grab assets all the time.

So they can simply say the Government will hodl all BTC grabbed in 2025. until 2030.

the state will conver all other crypto grabbed in 2025 to btc and hold till 2030.

in 2030 if btc is up 25% shall be converted to cash.

it is now a done deal NH has a BTC reserve

I don't know if this is good or bad since we didn't see them yet for long time holding Bitcoin. But since NH already pass a bill about Bitcoin reserve then hopefully they will not messed around and sell everything early while they are in profit.

But for now good thing they consider to invest on Bitcoin and looking forward for more states will do the same decision since somehow it will help Bitcoin to increase its demand.

Fuck Feds for their CBDC and I don't think people would like it since Bitcoin is more better than those what they try introduce.

[Azharul]

Their government fumbled. Untested asset when Bitcoin have been around for more than a decade and they couldn't see it how it is now?

I bet they folded when the national government told them to shut down that proposal and just follow them. Ofc the national government wants all the state to keep together but ones one state becomes richer than the other, there may be time that Arizona would lead the exit the US if they just didn't vetoed.

If US government want to invest bitcoin in cryptocurrency market in this time, i believe that it will be helpful for there country. Because if we follow in cryptocurrency market we can see that new ATH is starting in cryptocurrency market or bitcoin. We also saw that bitcoin price is remain $98660 in this time. I think that gradually bitcoin price reach best position. So hold bitcoin will be prefer for US. But if government can buy bitcoin in more lower market, then it must be helpful source for there country. So i believe that hold must be progress to them.

[ultrloa]

Their government fumbled. Untested asset when Bitcoin have been around for more than a decade and they couldn't see it how it is now?

I bet they folded when the national government told them to shut down that proposal and just follow them. Ofc the national government wants all the state to keep together but ones one state becomes richer than the other, there may be time that Arizona would lead the exit the US if they just didn't vetoed.

If US government want to invest bitcoin in cryptocurrency market in this time, i believe that it will be helpful for there country. Because if we follow in cryptocurrency market we can see that new ATH is starting in cryptocurrency market or bitcoin. We also saw that bitcoin price is remain $98660 in this time. I think that gradually bitcoin price reach best position. So hold bitcoin will be prefer for US. But if government can buy bitcoin in more lower market, then it must be helpful source for there country. So i believe that hold must be progress to them.

They are all scared and think about its risky to invest on Bitcoin since most of them are short term headed that's why they always have this reasoning and only focus on negative things about its volatility.

But if they manage to spend sometime looking at its potential and other things for sure they would never think about Bitcoin is risky for them but rather they take advantage on its existence then think about Bitcoin have great potential to give them good returns in future.