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0 sats \ 10 replies \ @frostdragon OP 28 Mar \ parent \ on: The bitcoin beginner’s guide to the “Government Ban/Confiscation” argument bitcoin_beginners
Feds coming after tainted coins - is there any precedence for that in the real world? I get that the public ledger thing is new and unique, but it's also not because the Feds have the USD ledger already, and I don't see them taking back money that was spend by felons... Seems like there'd be some pretty significant blowback for that kind of thing.
Re ETF in exchange for keys - I think for the vast majority of people that buy and hold bitcoin in self custody, there really is no incentive to give up bitcoin. That would be like asking someone with a hardware wallet to put their bitcoin back on an exchange. No one is going for that, no matter what the promises are.
No, the government can't just hyper inflate its currency any time it wants. And when they print, they can't just shut off the printer and call it a day. They have to counteract it by raising interest rates and manipulating markets to prevent total collapse. The ability to escape the dollar and store value is absolutely essential for this system to survive, and right now that's done via real estate, mutuals funds, and other investments. Like - the stability of those investments is literally propping up the entire system rn. In the USD Fiat system, there is no way to save money without losing it to inflation - your only option is investment. Like, dude, in 2022, corporate investment made up A WHOLE QUARTER of home buyers.
Bitcoin can gradually take the place of those things to the extent that they are used to store value. They'll still be around, but they won't be worth quite as much, because there won't be a desperate necessity to use them as the savings account of America.
Allowing people to store value in bitcoin could further stabilize the economy, and it's reasonable to think that a the government won't have a problem with that idea (especially with democratic elections over time).
As that happens and the value of bitcoin goes up, there's a huge incentive for the government to use its own massive bitcoin supply to pay off federal debt.
TL;DR - we can exit by reallocating value to bitcoin and slowly becoming more economically conservative, and it can be a win/win for everyone.
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