The prompt for the discussion is the title of the post. I understand there is a claim that a Bitcoin reserve would be the right move for a nation state.
how does the debt end up getting paid off other than giving the Bitcoin to a bank?
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100 sats \ 1 reply \ @grayruby 24 Nov
The debt will not be paid off. Even if the US was able to buy 1M bitcoin.
The debt is currently 35T. There is no way it isn't significantly higher in 20 years. Probably close to 100T if there has not been a complete collapse of fiat.
Bitcoin would have to have a 2.1 Quadrillion market cap to pay off the debt with 1M bitcoin. That would be equivalent to around $100M USD per bitcoin. Sat per dollar parity.
While I don't think that is impossible in 50 or 100 years if fiat persists and money supply hyperinflates, it seems highly unlikely in 20 years.
More likely they will use some of the Bitcoin stash to pay off some of the debt to get debt to gdp to a more reasonable level.
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151 sats \ 0 replies \ @freetx 24 Nov
The debt cannot be paid off because retiring debt destroys money is our current system. If the $35T in debt was paid off, there would be literally no money left in circulation.....as in a .01 penny would have staggeringly insane purchasing power.
Secondly, selling BTC would be a really ineffective way to manage the debt....(once its sold your trick is done).
They will do what what MSTR currently does (and what most companies will do), Bitcoin will become a Balance Sheet asset and higher bitcoin prices will enable higher debt levels. (ie. $4M bitcoin price X 1M BTC = $4T balance sheet asset so that could be leveraged up to say 40-200T additional currency issuance/debt).
This is how Gold was supposed to function to Fed Reserve, but congress / great depression derailed that....
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69 sats \ 0 replies \ @zapsammy 25 Nov
the sats never have to move. if they do move, that's only for a massive show, an illusion.
the debt game will continue as usual, but the sheeple will be reassured that the debt can be repaid, because the "government" can issue more debt since it also hodls, like saylor but with bigger numbers.
the game will not change until enough people hold their own keys. it will continue as usual. more debt creation, with decimation of of wealth, followed by decimation of lives. someone wants the population mostly dead.
plus, as echoed in other comments, if there never was any money, what is there to pay off? there was no money. the guy with the money left a long time ago, and the kids keep playing with paper notes.
https://babylonobserver.com/mystery-paper/
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69 sats \ 1 reply \ @denlillaapan 24 Nov
The bondholder...?
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0 sats \ 0 replies \ @itsrealfake OP 24 Nov
Right.. so, then the bitcoin would not be owned by the government any longer.
I guess I'm just sensing that the process seems like a sneaky way to make the usgov get bitcoin and give it to the banks
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