What makes a strategic bitcoin reserve make more sense than like a strategic oil reserve or a sovereign wealth fund with a highly diversified portfolio?
I mean isn’t this like Texas just saying they are going to budget buying a bunch of Nvidia stock or Tesla stock or something?
wredcoll · 4h ago
Presumably this makes money for specific people selling bitcoins?
michaelmrose · 4h ago
A strategic oil reserve is an actual thing you can use instead of buying it abroad should it come to pass buying it abroad becomes problematic or expensive.
A wealth fund is for folks with a surplus in order to get value out of their investment.
Unlike BTC these things make sense. This is gambling.
bediger4000 · 4h ago
What eventuality is Texas preparing for? How does a Bitcoin reserve help in any way?
elzorroplateado · 4h ago
TX is preparing for more waves of USD inflation. The conventional understanding is that Bitcoin allows its holders to protect themselves from massive waves of currency debasement. A Texas Bitcoin Reserve throws a massive power re-distribution back into the its hands and out of the those of the Federal Reserve System. Sure, TX could 'hodl' their oil, but sometimes it's good to have a digital savings technology that cannot be debase.
wredcoll · 4h ago
> but sometimes it's good to have a digital savings technology that cannot be debase.
I'm sorry, a what? Digital savings technology? Bitcoin? The "asset" famous for having zero backing and incredibly wild price swings? How is this supposed to work?
lesuorac · 3h ago
> TX is preparing for more waves of USD inflation.
I mean, the guy sponsoring the bill straight up said its so Texas can invest in the highest performing assets of the past 5 years.
I mean isn’t this like Texas just saying they are going to budget buying a bunch of Nvidia stock or Tesla stock or something?
A wealth fund is for folks with a surplus in order to get value out of their investment.
Unlike BTC these things make sense. This is gambling.
I'm sorry, a what? Digital savings technology? Bitcoin? The "asset" famous for having zero backing and incredibly wild price swings? How is this supposed to work?
I mean, the guy sponsoring the bill straight up said its so Texas can invest in the highest performing assets of the past 5 years.
So, it's not in preparation of USD inflation.