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0 sats \ 4 replies \ @orthzar 7 Apr 2023 \ parent \ on: Texas moves to create gold-backed digital currency bitcoin
Are you saying it's unconstitutional because the digital token isn't a physical coin?
Physical vs digital has nothing to do with this issue. A state GBDC is unconstitutional, because the states are prohibited from "coin[ing] Money." A GBDC is very clearly coined money. Only the US Federal government can legally coin money.
No doubt there will be many failed solutions.
Sure, but attempting solutions that are guaranteed to fail is a fool's errand. The Supreme Court will strike down all state GBDCs. You can bet your Bitcoin stack on that.
The reason I like seeing these news stories is that it shows people are waking up to the problem.
Nobody is being woken up by these bills. Instead, these bills trick people into believing that the State will save them from bad money. And with such a belief, why would anyone buy Bitcoin?
Texan: "Bitcoin is dumb, I'm gonna buy TexasCoin." [TexasCoin gets struck down by the Supreme Court] [Bitcoin doubles in price] Texan: "Oh, why didn't I buy Bitcoin when it was under $100k?"
The net result of these sorts of bills is to delay bitcoinization.
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0 sats \ 2 replies \ @grayruby 7 Apr 2023
Interesting. In your opinion, what would be the likely outcome if Texas refused to comply with supreme court ruling. Treasury cuts off any federal funds to the state?
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0 sats \ 1 reply \ @Undisciplined OP 7 Apr 2023
Maybe, but I'm not convinced that outcome is very likely. I don't know why the Supreme Court would rule against TexasCoin and if they did, I would expect Texas to comply.
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0 sats \ 0 replies \ @grayruby 7 Apr 2023
I am sure they would comply and who knows how the court would rule or if it would even get to supreme court but just playing through potential scenarios.
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0 sats \ 0 replies \ @Undisciplined OP 7 Apr 2023
Why do you think GBDC constitutes "coining" rather than making gold "a Tender in Payment of Debts", which is explicitly granted?
I'm not saying these bills are waking people up, although they might be to a limited extent, but rather that they indicate that people are waking up. The first step to recovery is acknowledging you have a problem.
I also think you're presenting a false binary of buying TexasCoin vs buying Bitcoin. There are many people who would choose TexasCoin over Bitcoin, but fiat dollars over Bitcoin. The road to knowledge is paved with failure.
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