Bitcoin's long-term growth 'far exceeds' the US dollar: Sen. Lummis

[Zorro]

While Federal Reserve Chair Jerome Powell was adamant that the central bank could not own bitcoin (BTC-USD), Senator Cynthia Lummis (R-WY) believes 2025 is shaping up to be "the year for bitcoin & digital assets" in a social media post from earlier this week.

Senator Lummis — who has championed the bipartisan Lummis-Gillibrand Responsible Financial Innovation Act (RFIA) alongside Democratic Senator Kirsten Gillibrand (D-NY) — has been a vocal supporter of President-elect Donald Trump's choice of David Sacks as the incoming administration's "AI and crypto czar" and what it represents for the crypto space.

Senator Lummis sits down with Seana Smith and Madison Mills on Catalysts to discuss the outlook of a US strategic bitcoin reserve, calling the landmark cryptocurrency "the right asset" and "digital gold" for being a finite resource.

"Only 21 million bitcoin will ever be mined. And it has the elements of strength. And even though it's slightly volatile, it's always volatile in an upward-leaning direction. And so the goal here of holding it for 20 years is in recognition that on the short term, there is short-term volatility. On the long term, there is long-term growth that far exceeds the ability of the US dollar to keep up."

https://finance.yahoo.com/video/bitcoins-long-term-growth-far-164309264.html

Yeah, let's stop having the US dollar serve as the global currency and give Bitcoin that role instead...

[bdamomma]

1. The

Tech Bros are hedging this on, they want to torch the dollar.

[yaesu]

2. BitCon is backed by zero assets but even tulip bulbs were the rage once. nt

[Lovie777]

3. And for some reason we must believe a Republican?................

[Blue Full Moon]

4. What?

The republicans have been systematically removing the protections put in place to keep The Great Depression from happening again. The crypto currency is based on the stock market. They are idiots.

[elleng]

5. 'Cause it's IMAGINARY!

[Yo_Mama_Been_Loggin]

6. Wyoming should be merged with Montana or Idaho

Very few people live there and it has outsized power.

[jmowreader]

18. If you're going to do that...

Merge Wyoming, Montana and Idaho. Now you've got one state with 3.7 million residents, five Representatives and two Senators instead of three states that combined have six senators. And to be very blunt, the only two good senators from either state were Wyoming's Alan Simpson and Idaho's Frank Church.

[DFW]

23. And even at 3.7 million residents

They aren't even half of the Americans Abroad (we number 9 million). We've never had a Senator or a House rep.

I never met Simpson, but Frank Church was a friend of my dad's and used to come out to our house in Virginia on weekends when I was very young. I remember he and his son, Forrest, were nice to me, but I was just too young to be involved in any substantive discussions.

[TimeToGo]

33. Simpson?

[jmowreader]

39. He was a hell of a lot better than the mob in there now

[TimeToGo]

40. I mean sure

But he was evil.

[0rganism]

7. Looks like 2025 will be an exciting year for those of us still using dollars to pay for rent, food, and medicine

"That's a very nice currency you've got there. Shame if something were to happen to it."

[struggle4progress]

8. I say: back US currency with tulip bulbs!

[neverforget]

9. The stupidity of this timeline is exhausting

[Blue_Tires]

14. It truly is 😔

[Celerity]

10. IF you take the most wildly optimistic valuation for BTC (I have seen a $3m per BTC target by 2030) and assume that the

US will end up with 1 million bitcoins (what the crypto bros are calling for), and then take that and and TRIPLE it (to 3 million BTC) that yields a gross valuation of 9 trillion USD at $3m per BTC.

Bear in mind that there are only 21 million bitcoins possible ever, around 20 million have already been mined, and of that 20 million, 4 to 8 million are lost forever (via lost wallets, people who have died and did not leave the privates keys to anyone, people who lost the private keys themselves, etc etc). Taking a conservative guess and saying 5 million are perma-lost, that leaves, atm, only 15 million or so out there. For the US to get to 3 million BTC, they would have to literally buy up 20% or so of all the bitcoins that will ever exist. They also can never come close to selling off 20% of the total supply without crashing the valuation to a massive level.

The national debt will be over 40 trillion USD by 2030, probably far larger. 9 trillion USD (and that number is extraordinarily unlikely to be able to be realised via selling off the US holdings in toto or anywhere near in toto) will never come close to paying off that ever-increasing US national debt.

It is fantasyland.

But let's go further......let's take it to a maximal level.......................

By 2050 or so, counting unfunded liabilities, the US cumulative exposure could well be closing in on 200 trillion USD (hard debt, plus unfunded liabilities).

Let's say that the US somehow (fantasy but let's play this out) ends up with HALF of all BTC that is available.

Around 7.5 million bitcoins (and that is IF the perma-lost BTC stays, or is, only 5 million lost, and that number may well be, as time goes on, far too small, it may end up at 7 or even 8 million perma-lost, reducing the 7.5m BTC US holding number (if we are saying the US holds HALF of all BTC) down to as low as 6 million BTC)

Let us also project an extraoridinary 10 MILLION USD per BTC market valuation.

That 7.5 million BTC would have a GROSS value (if ALL were liquidated, which again is impossible for reasons stated before) of 75 trillion USD.

Nowhere near paying off the national debt (which if we go off current defict rates, could be around 80 trillion USD by 2050) PLUS covering the unfunded liabilities, and that is with my utterly profound fantasyland projections of the US holding HALF of all of the entire BTC supply and a ONE HUNDRED-FOLD increase in the price from its current 100K USD per BTC or so.

[hatrack]

11. Fuck off, Bitcoin Whore

.

[Lancero]

13. I get it, we don't like either of the women mentioned - But that justifies this misogynistic slur, how, exactly?

[Hekate]

12. Long-term? Like from what date is she counting? Because dollars have been around the US since the 1770s...

… and backed by the full faith and credit of the US Federal Treasury.

Bitcoins, otoh, are backed by the faith of fantasists. One good hack from the Chinese will render Bitcoin “mines” useless. Or — imagine an EMP going off — pfft.

[walkingman]

15. With the approval of Crypto ETFs by the SEC because of pressure by

the big banks and brokerage houses, it makes you wonder if "too big to fail" is taking shape again. There are powerful people in business and government pushing this for financial gain and they seldom fail to get their way.

Taxpayers and debt are a secondary issue. We know this from history.

[MineralMan]

16. Fantasy Currency, Backed by Cocaine Dreams.

Turning Minecraft into a Reality Game? Won't work for long.

[hunter]

17. The final pump before a great dump?

One can hope.

But there's no arguing with people who believe the Fuckwit King is a great president, or that certain magical numbers found in video game "mines" are better than money.

[Wounded Bear]

19. "always volatile in an upward direction" WTF does that even mean?

Obviously the person quoted does not understand what volatile means.

[kentuck]

20. In my opinion, that is why they wanted to shut down the government...

So they could crash the US Dollar and replace it with the even more worthless Bitcoin system.

[Retrograde]

21. "Only 21 million bitcoin will ever be mined"

Does she really believe this? If so, maybe she's be interested in purchasing a nice bridge, maybe one with tulips nearby. Or maybe she thinks there are a limited number of, er, prime numbers that can be generated and crypto people will stop when they reach it. Or maybe she's just jealous of Tommy Tuberville winning the prize of nation's dumbest senator several years running and wants a shot at the title herself.

The senate is way out of whack. This year, my state of 40 million people had three capable, qualified people running in the primary for US senator (OK, there were some whackos as well): any one of them would have been able to step into the position and demonstrate that they understand the problems the country faces. And this state with fewer people than many counties in my state is entitled to 2 senators because they were admitted to the Union when the populations of states were more equitable.

[Disaffected]

24. I believe the 21 million is "hard-built" into the system

and cannot be changed unless maybe the thing is hacked and counterfeit coin emerges.

BTW, this "volatile but always upwards" is nonsense on the face of it, especially for an instrument without any tangible worth (even less than tulips).

Speaking of hacking, if the block chain is hacked, the entire thing becomes worthless. I'd like to see some commentary on the probability of that happening.

[awesomerwb1]

29. Yes, the maximum total supply of Bitcoin is 21 million.

She is correct, and you are not if you're implying that's not factual.

[Jacson6]

22. Bitcoin will soon have a 1929 style crash. n/t

[Vinca]

25. Well, I hope Senator Lummis puts all his money in Bitcoin then. I also hope he drinks raw milk.

[bucolic_frolic]

26. Fed has the ability to create US Dollars infinitely

She doesn't know what she's talking about

[Historic NY]

27. Poof and its gone, its aim to get something from nothing

that being the US Treasury

[awesomerwb1]

28. Crypto isn't going anywhere

50-60 million in the US alone own or trade crypto. The younger generations like it.

Over 550 million people around the world own or trade crypto.

So much ignorance about crypto on this thread. You want to lose elections forever, keep hating on it. Hopefully the Dem leadership doesn't.

[doc03]

30. I thought there would be a melt down in Bitcoin like the 2008

financial crisis for years. I wish I would have bought one when they were a couple thousand dollars. I don't
understand how they have any value but someone does. A friend of mine tried to talk me into the dot com bubble.
I am glad I didn't buy that. He lost practically everything.

[Liberal In Texas]

31. A crypto collapse has the potential to make the subprime mortgage crisis

of 2008 look like a walk in the park.

Sure, lots of people have bought into it, but when it collapses there will be no FDIC to bail them out.

[bluestarone]

32. I'm thinking she has a closet full of bit coin. (just trying to get some more IDIOTS on board)

Hope she loses her ass.

[underpants]

34. 👀💰

Marching to read later.

Happy Holidays Zorro. ☮️

[dutch777]

35. ZERO basis in anything of real value, just speculation. $$$ are backed by we taxpayers. BTC ZIPPO

But somehow, I predict the taxpayer will end up on the hook to bailout banks or others that get bit by those pesky facts. When it started I thought legislation should be passed to outlay anything that competes as a currency not sovereign sanctioned. Guess that ship has sailed.

[haele]

36. Ummm. Does anyone remember inflation? And Bitcoin can be complicated on a day to day basis.

The value of the dollar is relatively stable day to day, even if they do decide to mint a $1 trillion coin to pay off the National Debt. Bitcoin is

Firstly Bitcoin values vary worse than different market fund vehicles do and, BTW, which Bitcoin server version are we talking about replacing the USD?

USDC (a stablecoin privately managed by Circle, not part of the US Treasury)? XRP? Etherium? Doge coin? They're all differently volatile, not always stable, and worth different values - generally pegged on the Dollar - when traded. If today, I got paid and have 1400 USDC coins, 1 Etherium coin worth $3,420 and 3200 Doge (appx. $1000) coins in three different which wallets until the 5th of January; how much do I set aside to pay my $2000 rent on the 1st?
The USDC is relatively stable, so I know I'll have $1400. As for the other two if I don't touch them, they could be worth $4600 or $2400 when it comes to pay rent. And my vehicle payment and student loans, and groceries....
And how do I convert it if my sweet 80 year old landlady only takes checks or cash?

There are several dozen types worldwide that I can find if I looked, and probably a dozen on the Dark Web.
Will they be able to cross platforms? If California requires a certain amount of security, authorizing only, say, five types of Bitcoin for commerce purposes, and you're being paid in another because your company is out of, say, Florida - how are you going to

Then there's the ability to secure "the wallets". You're going to ask approximately 80% of the country not already in algorithmic finance, that doesn't do "maths" beyond what is needed to balance a bank account or make change, to understand how their new cryptocurrency wallet works and how to secure it from skimmers and scammers? Most people don't know how to secure their phone accounts, and you expect them to secure their wallets?

[Bristlecone]

37. Republicans are going to fleece a lot of people via E currency

And it will all end as it has before….badly

[keithbvadu2]

38. One crypto currency out of many.

Not really such a good indicator.
Prime for a pump n dump.

Everyone can jump on the bandwagon which turns into a shitwagon.
----------------------
If the business model was good, there would be many more successes.

As we can see, the sales model for Bitcoin is terrific.

So was the sales model for Beanie Babies and Pogs.

And Tulips.