chadlupkes on Nostr: Bitcoin does not need the United States Government. The United States Government ...
Bitcoin does not need the United States Government.
The United States Government needs Bitcoin.
I first need to state the endgame goal, which is to replace the debt based fiat currency system with a wealth based hard money system. No more currency debasement by printing, no more governments that have to pay off international slavery loans or face sanctions by their trading partners. I believe that Bitcoin could be used as an international standard for the base layer wealth measurement system that underpins a global monetary system, but everyone is going to have to agree to that before it happens.
The ideal path for me would be as follows:
The United States Federal Government balances the budget. This is not going to be a quick process, but it was done in the past and can be done again. Easiest thing to do would be for Congress to start using Pay As You Go rules for legislation again. If someone files a bill in Congress that results in an expense, that piece of legislation needs to identify the exact funding source for that expense on a 1:1 ratio. We did this up to the 2001 budget in the late 90's and it worked. But the Afghanistan/Iraq war years destroyed it, and Congress has refused to use PayGo rules ever since. It's still on the books, they just need to enforce it.
Once we have a balanced budget, and indeed during the time period when we are trying to get to that point again, 1% of all federal revenue is directed towards Bitcoin Mining. Not a Strategic Reserve, but actual hash contracts that are funded by the Federal Government. The Bitcoin that is generated by these miners is not held or hoarded, but used. At first it would be sold at market rate and the resulting dollars would be added to the general fund. The more hash contracts are in place, the more the revenue would be, and the more the general fund is supported. Positive feedback loop.
When the budget is balanced, we keep it balanced. We pay off existing bonds, bills and notes as they come due as part of the regular expenditures. We don't need to sell any more bonds because the expenditures are paid for by selling the Bitcoin that the miners continue to generate. And as the debt is slowly paid off, the number of US Dollars in the system slowly begins to go down over time. Gradually the business world changes over to using Bitcoin, not just as a reserve asset store of value but as a medium of exchange and unit of account. Things are still priced in dollars, because that's a huge change that we won't be ready for until a decade or two passes.
Celebrations across the country erupt when the final 30 year Treasury Bond is paid off, and the US Government formally transitions over to the Satoshi as the base money, joining many other nations around the world that were able to do that already.
The United States Government needs Bitcoin.
I first need to state the endgame goal, which is to replace the debt based fiat currency system with a wealth based hard money system. No more currency debasement by printing, no more governments that have to pay off international slavery loans or face sanctions by their trading partners. I believe that Bitcoin could be used as an international standard for the base layer wealth measurement system that underpins a global monetary system, but everyone is going to have to agree to that before it happens.
The ideal path for me would be as follows:
The United States Federal Government balances the budget. This is not going to be a quick process, but it was done in the past and can be done again. Easiest thing to do would be for Congress to start using Pay As You Go rules for legislation again. If someone files a bill in Congress that results in an expense, that piece of legislation needs to identify the exact funding source for that expense on a 1:1 ratio. We did this up to the 2001 budget in the late 90's and it worked. But the Afghanistan/Iraq war years destroyed it, and Congress has refused to use PayGo rules ever since. It's still on the books, they just need to enforce it.
Once we have a balanced budget, and indeed during the time period when we are trying to get to that point again, 1% of all federal revenue is directed towards Bitcoin Mining. Not a Strategic Reserve, but actual hash contracts that are funded by the Federal Government. The Bitcoin that is generated by these miners is not held or hoarded, but used. At first it would be sold at market rate and the resulting dollars would be added to the general fund. The more hash contracts are in place, the more the revenue would be, and the more the general fund is supported. Positive feedback loop.
When the budget is balanced, we keep it balanced. We pay off existing bonds, bills and notes as they come due as part of the regular expenditures. We don't need to sell any more bonds because the expenditures are paid for by selling the Bitcoin that the miners continue to generate. And as the debt is slowly paid off, the number of US Dollars in the system slowly begins to go down over time. Gradually the business world changes over to using Bitcoin, not just as a reserve asset store of value but as a medium of exchange and unit of account. Things are still priced in dollars, because that's a huge change that we won't be ready for until a decade or two passes.
Celebrations across the country erupt when the final 30 year Treasury Bond is paid off, and the US Government formally transitions over to the Satoshi as the base money, joining many other nations around the world that were able to do that already.