Quote from: EarnOnVictor on August 13, 2024, 05:21:56 AM

Quote from: ContentWriter on July 30, 2024, 08:16:43 PM

This guy may have made sense, though I suspect he's a Democrat. Apart from early holders making a killing off Bitcoin, how has it benefitted the world economy? Your opinion though...

Nobel Prize-winning economist Paul Krugman said that Tech-bro's support for Trump and Vance seems to be related to cryptocurrency/ He said that in reality. Bitcoin is still economically useless and useful just for money laundering and extortion. He described Trump's call for the creation of some kind of national Bitcoin reserve as equivalent to the government rescuing a scandal-ridden, value- and environment-destroying industry.

https://www.nytimes.com/2024/07/29/opinion/vance-trump-cryptocurrency.html

For real, this guy is making a point, but the issue is that people do not look at it from the economics perspective but from the investment perspective that can only enrich some sectional individuals (if it works because there are risks involved) but not a country. Can Bitcoin be used to adjust a country's inflation? No. Can it be reasonably used to secure a national reserve? No.

Trump is just a desperate person who is using people's weakness against them. I wonder how a country would feel if it had a $100B domicile in Bitcoin in its reserve and Bitcoin dropped significantly as it does during the bearish season. Such an amount could have devalued to $25B in some situations if we consider the past record to judge. Now tell me, do you think the National Reserve is a joke? Think of it, some central banks are using the reserve to adjust their FX deficit most time where they could remove about $2B at times for the national economic stability.

How would they feel if they were selling their Bitcoin at a cheap price when they bought it expensive and they couldn't wait because the matter is of pressing national need? These are just a few of many reasons to discourage any economist from going in the way of Trump and Bitcoin bigots. Notwithstanding, Bitcoin still has its usefulness aside from what Paul Krugman claimed.

Just want to point out this is not a good argument - the bitcoin as part of the nation's reserves thing. Nobody would care that Bitcoin price temporarily dropped. Do people freak out that the US owns hundreds of billions of dollars of Gold when the Gold price drops? Nope. These are permanent national reserves. US won't care one bit about the volatility of Bitcoin. The point of putting it in the national reserve is that it is hard money and is a useful asset, like Gold, for the nation to hold, simply in order to increase the value of the nation's permanent resources.

Your argument makes it sound like you think the US is gonna be trading Bitcoin or something haha. That is not what anyone is talking about.

Anyway, Trump is a corrupt traitorous deranged lying idiot criminal so nobody should put any stock in anything he says. He's just trying to buy votes from gullible people with his suddenly crypto-friendly talk. Best thing for Bitcoin is going to be a United States that still functions and remains a free country, so we need Trump behind bars for his crimes, definitely not in the White House again.

As far as Krugman goes, he clearly hasn't bothered to research what Bitcoin actually is. It's pretty dang common among economists to just assume Bitcoin is some sort of scam because it isn't part of the traditional financial system, and so they just write it off and never put any effort into understanding what it is.