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131 sats \ 12 replies \ @Undisciplined 16 Mar \ on: Saylor's Grand Strategy: Sell Dollars USDT & Recapitalize the Entire US on BTC bitcoin
One of the biggest problems with doing this in the political sphere is that you can't count on executing it as a long-term plan, because the next Congress/President can just stupidly sell it all off.
I think you're right, though, about this approach being in serious consideration. It fits perfectly with Trump's desire to make the rest of the world pay for America's big stupid government.
That's because any sitting administration gets Bitcoin at the price they deserve, if the next president sells it off, the following administration then need to get off zero....again 🤣🤣
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It's not about them 'paying'... it's about (if the above is correct) the world 'recapitalizing' around the Bitcoin and the US's ability and desire to front-run that.
If US companies have Bitcoin, US private citizens, and the American government and the government sell stablecoins to "buy Bitcoin"... it's a massive speculative attack.
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Isn't that a way of having the rest of the world pay? I'm not saying there's nothing more to it, but rather that this is what would appeal to this administration about the approach.
I don't quite understand why the rest of the world would go along with this, instead of buying bitcoin themselves. Why sit back and let yourself be front-run?
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Why does the rest of the world 'want dollars'?
The crazy thing is that in the 'global south' (take el Salvador for example) the demand for stables is at least as high as that for Bitcoin. Stablecoins are a huge business and you don't have to 'convince' people in the developing world of the value of USDT.
But Bitcoin is widely misunderstood/underutilized all throughout South America... it was in el Salvador becuase the state 'chivo' wallet was terrible and education was non-existent and it's the same everywhere.
If they want stables then... sell them stables that's Saylor's "evil genius" strategy but take the revenue/yield control and capitalize it indirectly for BTC.
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I should have clarified: I understand the short term interest in stable coins.
Once this bitcoin acquisition strategy is in place, though, the continued strength and stability of the dollar becomes inexorably linked to the prospects for bitcoin, right?
In that situation, I don't understand why you'd opt for the clearly inferior stablecoins, which will perform worse than bitcoin by design.
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"clearly inferior stablecoins..."
The world doesn't understand that though yet. From the Wall Street Journal today
Trump’s New World Order Tests the Dollar: Investors are more optimistic about Europe while tariffs cloud the U.S. outlook
https://www.wsj.com/finance/currencies/trump-trade-tariffs-us-dollar-value-814cbe37?mod=hp_lead_pos2
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"In another scenario, the dollar could continue to weaken and Trump could achieve his goal of shrinking the gap between U.S. exports and imports, but only because the U.S. economy is suffering, Setser added.
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Foreign investors might be tempted to shift money out of U.S. assets. But the alternatives, including Europe, have problems of their own.
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All of this is creating uncertainty,” said Robert Rubin, who served as Treasury secretary during the Clinton administration and once co-led Goldman Sachs. “On the other hand, where else do foreign companies and investors go?”"
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Right, but this is a dollar that has no relationship with bitcoin, yet. If dollars are essentially just being printed up to buy bitcoin, that changes the game for everyone.