ENCOURAGING ANGELS: Money For Nothing -The Ill-Conceived Notion That Bitcoin Will Shore Up the Failing US Dollar

Photo Credit: Screenshot at approx. 2:18 ‘Money for Nothing’ by Dire Straits via YouTube

By Stan Szymanski

“No currency can compare, either by a direct or an indirect relationship, real or imagined, with gold” (DeGaulle’s 1965 ‘Criterion Speech’)

…As the west bets on Bitcoin to shore up their failing currencies…

Image Credit: @SenLoomis and Forbes

Forbes reported this week that ‘Nation States Turn to Bitcoin as a Strategic Asset’ claiming that …’bitcoin is no longer just a niche investment but a geopolitical asset’…

Of course we know that President-elect Trump made headlines last summer when he attended the Bitcoin conference in Nashville, TN.:

…’In his keynote address at a bitcoinconference in Nashville, Tennessee, the Republican presidential nominee promised to make the United States the “crypto capital of the planet” and create a bitcoin “strategic reserve” using the currency that the government currently holds.’…(AP News)

President Trump is acting ‘as if’ Bitcoin is a commodity that can underpin the economy of a nation. And other nations are beginning to follow suit:

…’Switzerland is also contemplating a similar move. Known for its neutrality and financial expertise, the Swiss National Bank is considering adding bitcoin to its reserves alongside gold. A public referendum could soon make Switzerland the first nation to officially hold bitcoin as a reserve asset.’…(Forbes)

The reserve currency of the world has historically been based on and supported by a commodity-gold. More recently it had been oil in the case of the Petrodollar-Circa 1973-2023. This agreement ended when the Saudi Arabian government did not renew this accord with America in June of 2023.

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Countries who have ‘owned’ the reserve currency of the day throughout history always run into problems when they have to finance a war. Whether is was the Romans in 60 A.D. or Germany trying to pay its reparations related to World War I, they each found out that they had to debase the currency by ‘watering down (removing some of)’ the precio