A decade ago the idea that the state could invest in bitcoin would have been exciting. But years of watching cryptocurrency serve only to dodge taxes, launder money and delude small investors, providing no actual use that helps society, makes me realize it is at best a stunt and at worst a scam. So I’m not excited.
Here’s a Globe story about the bill Ayotte just signed that adds cryptocurrency to the list of things that the state treasurer is allowed to invest in. New Hampshire is the first state to take the plunge but probably won’t be the last. Libertarians love regulation-light crypto with its cool singularity vibe.
The new law does have some limits thankfully, reports the globe:
A digital asset must have a market capitalization that averaged at least $500 billion in the preceding calendar year to qualify for state investment. That means Bitcoin, which has a market cap of roughly $1.9 trillion, is currently the only cryptocurrency eligible for state investment. (The market cap of another major cryptocurrency, Ethereum, briefly surpassed $500 billion in 2021, but is now about $220 billion.) Proponents of the legislation cited the market cap threshold as a guardrail to ensure taxpayers won’t be suckered by fad-fueled “memecoins” and other especially risky investments
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