Recently, Bloomberg called the idea of creating a U.S. government reserve in Bitcoin the greatest scam. And here's why: 😲👇
What's wrong with Bitcoin?
According to the publication, strategic reserves like oil are created to support the economy and protect the country. However, Bitcoin has no such goals. It does not generate real income, is not tied to industry, and essentially depends only on the 'greater fool' who will buy it at a higher price. 💸
Tax spending is a risk to the economy
If the government starts funding a Bitcoin reserve, it will entail:
1. Increase in national debt or printing new money, which will increase inflation. 📉
2. Devaluation of the reserve due to the volatility of cryptocurrency. 💥
3. The risk of losing hundreds of billions of taxpayer dollars. 😰
According to Bloomberg, Bitcoin has no intrinsic value. It could collapse dramatically, creating financial chaos, especially if banks start accepting it as collateral. 😨
Why is this dangerous?
If the price of Bitcoin drops, it will lead to the collapse of the financial systems that relied on it.
Such mass adoption could only enrich current cryptocurrency holders, leaving everyone else at a loss. 😡
What about MicroStrategy?
Bloomberg also criticized MicroStrategy's strategy. The company is actively buying Bitcoin through debt financing. Analysts believe that such an approach is a ticking time bomb, as a drop in price could collapse their model. 💥
What do you think?
Is the idea of Bitcoin as a government reserve a revolution or a risky venture? Share your thoughts in the comments!
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