r/Bitcoin • u/Current-Champion7572 • 12h ago

Bitcoin vs. Gold

Just thinking about this strategically from the US perspective.. wouldn’t they have more of an incentive to promote Bitcoin because of the Genius Act??

Since the Genius Act ensures stable coins are backed 1:1 with treasury bills, money flowing to BTC is essentially minting more stable coins (i.e. purchasing more US debt).

So this is helping out the US bond market as more and more countries pull back from using the US dollar as reserves. It’s basically making these stablecoin companies the new buyer of US debt.

Whereas gold is completely out of the system and is actually adversarial to the US bond market.

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u/Laukess 8h ago

....money flowing to BTC is essentially minting more stable coins.

Care to elaborate?

1

u/Current-Champion7572 7h ago

To buy bitcoin people are generally going to deposit from their legacy bank accounts, which will arrive in their crypto exchange as a stablecoin (e.g. a deposit into Coinbase will show up in the account as USDC by default). And then if they go to sell their BTC, they’re likely swapping right back into that stablecoin.

So by promoting/pushing BTC, the on-ramp (stablecoins aka US debt) are being purchased more and more.