Rob Warren (no relation, AFAIK) recently posted a video on Twitter responding to some of my security budget FUD. It's a good video. (Elon has been trying to play hardball with suppressing links, so I'm obviously going to do my part and not link his website.
Bitcoin price enthusiasts are often happy to tell you that the number of Bitcoins minted every year is declining exponentially, which they hope leads to a supply crunch. What they don't tell you is that this schedule also will choke the miners who provide security out of existence.
In July Senator Cynthia Lummis proposed the so-called BITCOIN Act which would establish a "Strategic Bitcoin Reserve." Shortly after, Trump promised Bitcoin enthusiasts that he would create a "strategic national stockpile." Naturally, Bitcoin holders are rapturously elated: The USG buying Bitcoin represents massive exit liquidity at
I came across this piece today written by Sam Lyman https://fortune.com/crypto/2024/12/06/the-case-for-a-strategic-bitcoin-reserve/ It's pay-walled, but I'll quote the important parts. In summary, it's basically a concise version of Jason Lowery thesis: Once the entire world gets fully enraptured
While it bears some similarities, there are many reasons why it's not the same type of asset. First of all, if you want to say serious things about Bitcoin, you have to understand how it works. You can't just observe that other people are buying it.
No, the United States should not invest in a "strategic Bitcoin reserve" Bitcoin was created 16 years as an innovative solution to a decades old problem of how to create a decentralized cryptocurrency, a "peer-to-peer electronic cash system" as the white paper described. The solution is
Bitcoin is cryptocurrency. This means that the underlying units, which are abstract, made-up units, are sent from one user to another via signed messages. These message cannot be forged unless you are the owner of the private key, which is essentially a very long password. The cryptography has been understood