this post was submitted on 09 Mar 2025
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I don't think Bitcoin qualifies as a "safe store of value" when it fluctuates like hell on a day-to-day basis and transferring it anywhere for any reason costs exorbitant amounts of money. Much as you or I don't trust China, I think the powerhouse of an economy that it has will make it awfully enticing for investment orgs, and I don't think the U.S. will have to "recognize defeat" for the Euro to replace the dollar, either. If the dollar tanks, it tanks.
There is no "safe" store of value, it always depends on demand; there is no single item with a constant demand. One would think that air, water, food, housing, etc. should be always in demand... but reality is showing how people are willing to sacrifice those for something else all the time.
Bitcoin transfers cost pennies on the Lightning Network. An argument can be made, that SEPA transfers cost exactly 0... also an argument can be made, that SEPA didn't go all the way down to 0, until cheap crypto transfers became a thing. But SEPA is an Euro thing.
China has a 100% intervened market, there is exactly 0% security that any investment won't go to 0 in an instant, by decree. There is a reason why Chinese people invested 30% of GDP in the housing market, allowing scammers to build ghost towns they never planned on completing... and then it all went crashing down.
The US sees the Euro as a competitor of the Dollar; for the US to buy a strategic reserve of EUR, it would definitely mean recognizing defeat.