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46 sats \ 5 replies \ @Bell_curve 11 Aug 2024 \ parent \ on: Should the US Government Acquire a Bitcoin Reserve? • Listen on Fountain bitcoin
All it takes is one bear market and there will be political pressure to abandon the bitcoin reserve project
It would definitely be a big political issue between the party that introduced it and the party that didn't. If Bitcoin was up or down substantially from one term to another I think we would see a push to sell if the non bitcoin party was in power.
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A big part of Bob's case is that there are real risks in holding high volatility assets if you have strong liquidity needs, even if they have a very high expected return.
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Governments have high liquidity and low time preferences. In theory they should plan for the long term but they have daily payroll and expenses.
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Politicians have very high time preference, though, since they have to deal with election cycles.
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I meant high time preference!
You are right.
Politicians and governments think and act short term because of elections and the media
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