Crypto leaders press Trump to create federal bitcoin reserve

[muriel_volestrangler]

14. They want a federal crypto black hole, not a reserve; and that's to keep crypto as a Ponzi scheme

The article notes that when crypto is seized as the proceeds of crime (a fairly regular occurrence, of course), governments then sell it off. And the bros are pissed off that this goes against their aim of enticing in more suckers with "ever-rising prices" by restricting the supply, to just the crypto that the bros own. So they want the federal government to hold onto all that it gets (and maybe spend real money buying it too) - for decades. They claim the mantra should be "never sell crypto" (well, yes, that is what the runners of a Ponzi scheme would say - they don't want people wanting real money by selling, or the price will crash. They want to be some of the few people selling).

But that means it's not a "reserve" (eg the federal petroleum reserve is actually used every so often), it's a one-way black hole. Which keeps the price the bros can sell at high. This is just them wanting the government to manipulate the crypto market to their benefit.

At least Moody's has someone who sees it clearly:

“There’s just no discernible logic to do it,” said Mark Zandi, the chief economist at Moody’s Analytics. “I get why the crypto investor would love it. Other than the crypto investor, I don’t see the value, particularly if taxpayers have to ante up.”