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this post was submitted on 17 Dec 2024
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Asklemmy
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It is the same reason why the USA still holds gold and silver even through they aren't pegged to the dollar, it is an asset class which could be useful in the future.
The issue is that relative to gold or silver, Bitcoin is very volatile. A crashing bitcoin could endanger the reserve, forcing the government to double down, making the volatile nature a bigger issue.
Yes gold is somewhat volatile but compared to Bitcoin, it is super stable. And ofc gold and silver are real resources that you can do for their physical properties.
Price support can be a reason to create a reserve, but it isn't the only reason. Most countries don't plan their good and silver purchases based on trying to meet a value represented in currency.
You can make that argument in 5000 years. As of today, it's still equivalent to MtG cards.
So what you're saying is we need a strategic MtG card reserve.
A lot of countries keep a reserve of Euros, which is a fiat currency not tied to a single country and only came into being about 25 years ago.
Currency is like Tinkerbell, it only lives through belief in it. Right now, enough people believe in Bitcoin being a currency and that belief doesn't seem to be going away as long as the Internet still exists.