Bitcoin is a strategic asset, not XRP.

The new proposal submitted to the new encryption task force established by Maximilian Staudinger creates XRP’s case as a “strategic financial asset” of XRP (very suspicious mathematics and logic).

XRP is not a strategic asset and says that the logic of this proposal is at best.

In this proposal, Staudinger says that the US NOSTRO account (an account used by banks) is locked in the US Nostro account. In addition, a specific regulatory condition, including a SEC that classifies XRP into a payment network, is created, and the US Legal Division (DOJ) provides a legal permit for a bank to use XRP, and a bank claims that the bank uses XRP as a liquidity solution. It claims that it will be liberated to be available.

So let’s disassemble why this doesn’t make sense.

First, the Nostro account is simply a bank account owned by the US Bank. I’m not sure what kind of logic of this domestic bank, which the theoretically replaces the US dollar that XRP will replace the federal government. Therefore, this dollar can be used to take over Bitcoin on behalf of the government.

Second, the proposal does not provide detailed information on how these domestic banks get XRP to replace the dollar. It seems logical to buy an XRP, and XRP absorbs $ 1.5 trillion, not Bitcoin. Ripple, the publisher of XRP, will not work because it has about $ 100 billion in XRP even if you want to simply use this Banks XRP.

Third, even if the price of Bitcoin drops to $ 60,000, the price will immediately rise as the US government begins to buy 25 million Bitcoin.

Finally, the hard cap of 21 million Bitcoin is well known in Bitcoin or encryption space. Therefore, it is very stupid to suggest that the US government can buy 25 million Bitcoin. Even in half, even one person would have suggested that the government would buy 15 million Bitcoin for $ 100,000 per bitcoin (mathematics would still work).

Given how wrong the logic of this proposal is, it is difficult to consider XRP as a strategic asset. Also, why does the US government do when two -thirds of the supply still issued assets? It doesn’t mean much.

Bitcoin, on the other hand, is a worldwide distributed asset that many people around the world are used as shops of money and value. Bitcoin networks are also managed by tens of thousands of nodes, and it is virtually invisible thanks to about 0.4% of the world’s energy. (The XRP network is managed by 828 nodes and is not protected by all energy.) These factors make Bitcoin a logical preliminary asset. This is the way the US government is officially classified.

Therefore, the SEC already understands what I explained in this work, and I do not spend much time considering Staudinger’s proposal.

This article is a take. The expressed opinion is entirely the author’s opinion and does not necessarily reflect the opinions of the BTC INC or Bitcoin magazine.