Home Fear & Greed Pools Wallets Dictionary Advertise Facebook Twitter Telegram Reddit Youtube
Market Cap:
24h Vol:
Cryptocurrencies: 11975
Markets: 92589
CoinInsight360.com logo CoinInsight360.com logo
ENG
EST
RUS
TUR
DEU
CHI
KOR
ITA
USD
USD
AED
AFN
ALL
AMD
ANG
AOA
ARS
AUD
AWG
AZN
BAM
BBD
BDT
BGN
BHD
BIF
BMD
BND
BOB
BRL
BTN
BWP
BYN
BZD
CAD
CDF
CHF
CLF
CLP
CNH
CNY
COP
CRC
CUC
CUP
CVE
CZK
DJF
DKK
DOP
DZD
EGP
ERN
ETB
EUR
FJD
FKP
GBP
GEL
GHS
GIP
GMD
GNF
GTQ
GYD
HKD
HNL
HRK
HTG
HUF
IDR
ILS
IMP
INR
ISK
JMD
JOD
JPY
KES
KGS
KHR
KMF
KPW
KRW
KWD
KYD
KZT
LAK
LBP
LKR
LRD
LSL
LYD
MAD
MDL
MGA
MKD
MMK
MNT
MOP
MRU
MUR
MVR
MWK
MXN
MYR
MZN
NAD
NGN
NIO
NOK
NPR
NZD
OMR
PAB
PEN
PGK
PHP
PKR
PLN
PYG
QAR
RON
RSD
RUB
RWF
SAR
SBD
SCR
SDG
SEK
SGD
SHP
SLL
SRD
SSP
STD
STN
SVC
SYP
SZL
THB
TJS
TMT
TND
TOP
TRY
TTD
TWD
TZS
UAH
UGX
UYU
UZS
VES
VND
VUV
WST
ZAR
ZMW
ZWL
A company that is changing the way the world mines bitcoin

WallStreet Forex Robot 3.0
Market Cap
24h Vol
11975
Cryptocurrencies
54.28%
Bitcoin Share
Cryptopolitan 2024-12-10 21:53:43

Bloomberg editorial criticizes U.S. proposed Bitcoin reserve as “biggest crypto scam”

Bloomberg editorial criticizes U.S. proposed Bitcoin reserve as “biggest crypto scam”

A Bloomberg editorial published recently has condemned the recent U.S. government’s plan to create a strategic Bitcoin reserve calling it a probable major scam in the cryptocurrency market. The editorial also notes that it is unclear what aims the initiative serves and that it entails certain fiscal risks for taxpayers. The editorial notes that while conventional strategic reserves involve stocking up on products such as oil to feed the economy and protect the country’s interests, a Bitcoin reserve lacks such a purpose. Bitcoin has been called a speculative asset with no industrial use or connection to the real economy. Its worth is solely based on market perception and as such should not be used by governments for fiscal or social planning, the article reads. The financial risks of Bitcoin reserves Spending the taxpayers’ money on Bitcoin may result in significant monetary loss. The editorial also claims that if the government were to fund the reserve it would have to do so by raising the national debt or by creating new money and this would stimulate inflation and weaken the value of the U.S. dollar. Also, since Bitcoin is highly volatile and does not have a real intrinsic value, the reserve may become worthless, thus affecting taxpayers’ money in the hundreds of billions. The proposal may also have an impact on the financial structure and on the economy in general. If banks and other financial institutions decide to take Bitcoin as collateral, a sharp decrease in its price may lead to another financial collapse that would need a bailout. This scenario shows the risks of adopting Bitcoin as a financial instrument on the institutional level. However, the editorial notes that this may lead to the enrichment of the current Bitcoin owners and pose a high financial risk to the government. Stating, “The government, would be playing the greater fool….” Is Bitcoin going for the centralization road? Originally, Bitcoin was designed for the purpose of carrying out transactions outside of the control of any financial institution. According to the Editorial, the call for a government-backed Bitcoin reserve is ironic since it’s a move towards centralization. The editorial accuses leading crypto exchanges, including Coinbase, of advocating for what essentially translates to a large handout while going against the very idea of crypto. The Bloomberg editorial concludes that the formation of a Bitcoin reserve by the U.S. government is unwise and carries many financial risks. It submits that such a step would mainly advantage the current owners of Bitcoin while exposing taxpayers to risks. The editorial suggests that crypto economies should not spread outside the crypto sphere to avoid risks to the national economy. From Zero to Web3 Pro: Your 90-Day Career Launch Plan

Most Read News



Cryptohopper
hardware wallets, hardware , wallets, Crypto Currency, Cryptocurrency hardware wallets, Crypto Apparal, crypto wallet, Cryptocurrency wallets

Market Cap
24h Vol
54.28%
Bitcoin Share
659
Today News
Read the Disclaimer : All content provided herein our website, hyperlinked sites, associated applications, forums, blogs, social media accounts and other platforms (“Site”) is for your general information only, procured from third party sources. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion. You should conduct your own research, review, analyse and verify our content before relying on them. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. No content on our Site is meant to be a solicitation or offer.