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 · 5h 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.
Dig1t · 6m ago
What many people don’t realize about bitcoin is that it does actually have an intrinsic usefulness. Its usefulness is that it is a token worth _something_ that can’t be revoked or taken away by a central authority.
We’ve seen how money is used as a political tool over the last few years. Support the wrong protesters or write an offensive song and your account can be frozen, transactions cancelled, or you can be debanked.
Bitcoin can’t be taken away from you by any authority for any amount of money if you protect it correctly. That is absolutely valuable and useful.
bediger4000 · 5h 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 · 4h 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.
So, it's not in preparation of USD inflation.
Dig1t · 35m ago
It can be both. Bitcoin is useful in the same exact way that gold is. Governments the world over have stockpiles of gold, it’s an asset that goes up over time and also resists inflation.
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.
We’ve seen how money is used as a political tool over the last few years. Support the wrong protesters or write an offensive song and your account can be frozen, transactions cancelled, or you can be debanked.
Bitcoin can’t be taken away from you by any authority for any amount of money if you protect it correctly. That is absolutely valuable and useful.
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.