Post
Topic
Board Economics
Merits 4 from 2 users
Re: Everything you wanted to know about Bitcoin Strategic Reserve.
by
LoyceV
on 10/12/2024, 13:32:01 UTC
⭐ Merited by fillippone (3) ,JayJuanGee (1)
Strategic Partnership with US Miners: this would be an ingenuous way of doing so. The government could buy the Bitcoins mined in the US at an average price. This would benefit the miners with a stable price and the government limiting the market impact.
I can think of a few problems with this plan already:
  • If market prices go up and miners have to sell at a fixed price (under market price), other miners will get more money and increase the difficulty. That means the fixed-price miners will mine less.
  • If market prices drop and miners get a fixed price (above market price), other miners will drop out after which the difficulty drops. So the fixed-price miners will mine more.
There's a reason the price is left to the market.