A new proposal presented at the Cryptocurrency Task Force of the US Securities and Security (SEC) from a Staudinger Massimiliano supports the case of XRP as “strategic financial activity” for the United States (using a very questionable mathematics and logic).
I am here to tell you that XRP is not a strategic resource and that logic in this proposal is at the most doubtful.
In the proposal, Staudinger says that $ 5 trillions are blocked in our US accounts (accounts that banks use for cross -border payments). And it claims that if certain regulatory conditions have been created – including the century that has classified XRP as a payment network, the United States Department of Justice (DOJ) which provides legal authorization for banks to use XRP and the Federal Reserve which imposes that the banks use XRP as a liquidity solution – therefore 30% of this capital ($ 1.5 trillion) would be freed for the government of the United States to purchase 25 million Bitco at $ 60,000.
So, let’s break down the reason why it makes little sense.
First of all, ours are simply bank accounts that US banks hold in foreign countries. I am not sure of which type of logic includes these national banks that address the US dollars that XRP will theoretically replace the federal government so that these dollars can therefore be used to acquire Bitcoin on behalf of the government.
Secondly, the proposal does not offer details on how these national banks would get the XRP that will replace the dollars. It seems only logical that they should buy the XRP, bringing to XRP by absorbing these $ 1.5 trillion, non -Bitcoin. Although Ripple, the XRP issuer, simply wanted to give these XRP banks to be used, this would not yet work, since it contains only about $ 100 billion in XRP, much less than $ 1.5 trillion.
Thirdly, even if the Bitcoin price was immersed at $ 60,000, the price would have started to increase immediately when the United States government began to buy 25 million bitcoins.
Finally, there is a hard limit of 21 million bitcoins (and about 4 million have been lost), which is a well -known fact in the bitcoin or cryptographic space. Therefore, it is quite silly to suggest that the United States government can buy 25 million bitcoins. If the author were even a semi -sisherful person, he could have suggested that the government bought 15 million bitcoins at $ 100,000 per bitcoin (even if mathematics would not have worked yet).
Given how defective the logic is underlying this proposal, it is difficult to consider XRP a strategic resource. Furthermore, why should the United States government do it when two thirds of the offer are still in the hands of the organization that has issued the activity? It doesn’t make much sense.
Bitcoin, on the other hand, is a resource distributed globally that many worldwide use both money and as value shop. In addition, the Bitcoin network is governed by tens of thousands of knots and is practically impenetrable, thanks to the approximately 0.4% of the world energy that protects it. (The XRP network is governed by 828 knots and is not protected by any amount of energy.) These factors make Bitcoin a logical reserve resource, which is the way in which the United States government now officially classifies it.
So, hopefully, the century already understands what I have outlined in this piece and does not spend a long time even if considering the proposal of Mr. Staudinger.
This article is a socket. The opinions expressed are entirely those of the author and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.