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Meme Paradox: Decentralized success stifles manipulators, challenging repeated price spikes. BTC's no exception – as consensus strengthens, hodling intensifies, and past price highs become harder to reach. Takeaway from Bankless podcast with Jim Bianco: https://t.co/wXDvuQ7czC
The logic behind the Fed acquiring Bitcoin instead of U.S. treasuries is predicated on the fundamental difference between the two assets: one can be printed and the other cannot.
This is essentially a hard asset acquisition strategy, similar to what central banks do with gold. By transferring from Treasuries, which can be printed at will, to Bitcoin, which has a fixed supply, the Fed aims to diversify its holdings and potentially safeguard against inflation and monetary instability.
Essentially it’s a hedge against themselves, which most central banks do, largely with gold today. Bitcoin is increasingly added to the central bank portfolio hedge mix.