Peter Schiff turns his car to Bitcoin…
“I’m finally starting to get it. Bitcoin could solve Social Security. I have a plan:
The Social Security Fund currently holds about $2.7 trillion in Treasury bonds. They should sell all of those bonds and buy Bitcoin. This move would surely drive up the price of Bitcoin, especially when the new QE (quantitative easing) program would be deployed to buy all the bonds sold by the fund.
Assuming that the Social Security Fund could buy 25% of all Bitcoin, by the time the last satoshi is purchased, and Bitcoin reaches $20 million, the Social Security Fund would be worth over $100 trillion. Currently, the unfunded liability for Social Security over the next 75 years is estimated at $23 trillion. Trillion dollars. The fund will have such a large surplus that people will no longer talk about raising taxes or raising the retirement age. Everyone benefits. The fund can then use all the Social Security taxes it collects to buy more Bitcoin, both supporting the price of Bitcoin and maintaining the value of its unique asset.
However, there is a small problem. Since all Social Security tax revenue is used to buy Bitcoin, how will the government pay the benefits? The fund cannot sell Bitcoin to pay these amounts because that would cause the market to crash. So, like all true Bitcoin holders, they must hold on.
Fortunately, there is a possible solution. The government declares Bitcoin as Reserve assets, then deposit their Bitcoin as collateral with the Federal Reserve (Fed), which will provide the cash needed to pay Social Security benefits. This arrangement is better for the government than the Fed holding bonds because Bitcoin requires no interest payments and no principal repayments. The Fed can simply hold Bitcoin on its balance sheet forever - effectively a diamond hand.
Once Bitcoin solves the Social Security problem, the government can move on to using Bitcoin to solve everything else. It's a shame it took Satoshi so long to find this magical solution. ”
