Goku on Nostr: The best thing about USG acquiring a strategic bitcoin reserve is that it will now ...
The best thing about USG acquiring a strategic bitcoin reserve is that it will now learn the concept of opportunity cost.
Dollars have an opportunity cost of ~0 since USG can print them on demand, so everyone in USG has for decades learned to never worry about costs, and never have to make trade-offs. That's why USG spends trillions of dollars every year on horrific things.
But there are only 21 million bitcoin, nobody can make more, and everything you spend comes at the cost of more bitcoin. Once you start calculating the opportunity cost in terms of bitcoin forgone, and the appreciation of the market value of these bitcoin, the vast majority of USG spending begins to look really stupid.
Most bitcoiners can tell you many stories about how finding bitcoin has helped them eliminate all kind of frivolous and wasteful spending. Now apply that to USG, and you could conservatively estimate that 90% of its spending would not pass the bitcoin opportunity cost test. Everything will be weighed against bitcoin and almost all of it will be found wanting.
Most bitcoiners imagined that bitcoin would destroy the value of the dollar and bankrupt USG. But if bitcoin merely teaches USG to spend responsibly, that on its own could go a very long way toward eliminating most of its evils.
Truly, #Bitcoin fixes everything.
Dollars have an opportunity cost of ~0 since USG can print them on demand, so everyone in USG has for decades learned to never worry about costs, and never have to make trade-offs. That's why USG spends trillions of dollars every year on horrific things.
But there are only 21 million bitcoin, nobody can make more, and everything you spend comes at the cost of more bitcoin. Once you start calculating the opportunity cost in terms of bitcoin forgone, and the appreciation of the market value of these bitcoin, the vast majority of USG spending begins to look really stupid.
Most bitcoiners can tell you many stories about how finding bitcoin has helped them eliminate all kind of frivolous and wasteful spending. Now apply that to USG, and you could conservatively estimate that 90% of its spending would not pass the bitcoin opportunity cost test. Everything will be weighed against bitcoin and almost all of it will be found wanting.
Most bitcoiners imagined that bitcoin would destroy the value of the dollar and bankrupt USG. But if bitcoin merely teaches USG to spend responsibly, that on its own could go a very long way toward eliminating most of its evils.
Truly, #Bitcoin fixes everything.