The U.S. Will Weaponize The Dollar By Backing It With Bitcoinbitcoinmagazine.com/markets/united-states-will-back-dollar-with-bitcoin
770 sats \ 11 comments \ @User21000000 30 Oct 2022 bitcoin
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307 sats \ 1 reply \ @ExponentialBTC 30 Oct 2022
I read the title and wondered who was smoking too much hopium and if this article would be just like a previous one with a similar idea, ... but the arguments here certainly are persuasive.
What if the U.S. recognizes that they would be the last domino left standing in a cascade of sovereign defaults? Would collapsing the global debt markets lead to hyperdollarization? Is this the only economic wild card the U.S. has up its sleeve to prolong its reign as the dominant global hegemon?
Whether the U.S. is at war with other central banks or not doesn’t change the fact that the country needs a new neutral reserve asset to back the dollar. Creating a global deflationary bust, and weaponizing the dollar is only a short-term play. Scooping up assets on the cheap and weaponizing the dollar will only force dollarization in the short term.
As we transition into the Bretton Woods III era, the Triffin dilemma is finally becoming untenable. The U.S. needs to find something to back the dollar with. I find it unlikely that they will back the dollar with gold. This would be playing into the hands of Russia and China who have far larger gold reserves.
The country is faced with a similar conundrum today but with a different set of variables. They no longer have the option of backing the dollar with oil or gold.
For thousands of years, money has been backed by trust and gold, and protected by ships. However, in this millennium, money will now be backed by encryption and math, and protected by chips.
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326 sats \ 0 replies \ @SatRat 30 Oct 2022
I agree. A well researched, well thought out argument that I find highly plausible. I know it’s not a popular opinion but I have a suspicion that the US played a very significant role in the creation and nurturing of Bitcoin to get us to this point. I despise and I’m skeptical of authority and institutions but I can’t seem to shake the lingering idea.
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273 sats \ 0 replies \ @siggy47 30 Oct 2022
Very interesting article which really opened up to me possible future plans the US has for the dollar. The author provides plenty of evidence to support his argument that bitcoin might serve as the future petrodollar that maintains US hegemony
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25 sats \ 1 reply \ @Brunswick 30 Oct 2022
I think, now that were a few weeks removed from the ETH merge, its becoming apparent the rationale for the switch to POS was to make stable coins faster and cheaper to transact. It was never about decentralization or privacy. Rather it was to create a lightning network but one at layer one that's essentially running "on fumes", and one run by big money, big debt and without a underlying hard asset like bitcoin (OK, bitcoin is the one and only true hard asset)
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0 sats \ 0 replies \ @selfish_gene 30 Oct 2022
кто придумал майнинг того и биткоин... кто имеет больше ресурсов то и владеет майнинг ом... кто сэкономил за 50 лет больше ресурсов тот и и владеет ими
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5 sats \ 0 replies \ @Atreus 30 Oct 2022
For thousands of years, money has been backed by trust and gold, and protected by ships. However, in this millennium, money will now be backed by encryption and math, and protected by chips.
That's a hell of a good line. Memorable.
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10 sats \ 0 replies \ @ExponentialBTC 30 Oct 2022
This is the second part in a two-part series about the Dollar Milkshake Theory and the natural progression of this to the “Bitcoin Milkshake.”
See also another post, found here on SN, with Part One:
How The United States Weaponizes The Dollar To Retain Global Hegemony #87171 https://bitcoinmagazine.com/markets/weaponized-us-dollar-for-global-hegemony
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0 sats \ 0 replies \ @alpacachino 31 Oct 2022
Thoughtful piece, and getting better from the magazine. Thanks for sharing @User21000000
Money is becoming a science, there is a monetary revolution, Bitcoin was invented and plays an important role, it seems like all the money in the world cannot buy Bitcoin, Bitcoin is closely related to many aspects of money including time, time will tell.
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0 sats \ 0 replies \ @Atreus 31 Oct 2022
Boom boom. These are the crucial points, IMO —
If Tether is true to their word and continues to back USDT with U.S. government debt, we could see a scenario in the near future where 80% of the total stablecoin market is backed by U.S. government debt.
What if a proliferating stablecoin market, backed by government debt, can help soak up that lost demand for U.S. Treasurys? Is this how the U.S. finds a solution to the unwinding petrodollar system?
This would indeed be the smart play for our financiers, who have to know the writing is on the wall for the Petrodollar. And America's financiers are nothing if not smart.
TLDR: "Can't beat Bitcoin, so join it."
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0 sats \ 0 replies \ @godlikeXi 30 Oct 2022
Nah. USD is USD. It’s useful and the world runs on it. For now…
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0 sats \ 0 replies \ @selfish_gene 30 Oct 2022
без вариантов... США не смогут это сделать по одной причине... они ещё пользуются чеками... ахааа
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