US Government Accumulating Bitcoin Could Pose Risks, Warns Expert

Real Vision's Raoul Pal has expressed concerns about the implications of the US government accumulating significant amounts of Bitcoin (BTC).

At the recent Bitcoin2024 Conference, presidential candidate Robert F. Kennedy Jr. proposed that, if elected, his administration would amass four million BTC as a strategic reserve.

Meanwhile, Senator Cynthia Lummis introduced a bill aiming for the US government to acquire one million BTC, or 5% of the total supply, over the next five years.

Pal, in a conversation with Skybridge Capital’s Anthony Scaramucci, cautioned that the government’s potential control over a large Bitcoin reserve could lead to market manipulation.

He noted that while additional buyers can benefit the crypto market, the involvement of the government—an entity traditionally associated with financial control—could undermine Bitcoin’s purpose of decentralizing monetary authority.

Pal expressed unease about the government’s potential to influence Bitcoin’s price by either dumping or accumulating it, drawing parallels to how central banks manage traditional currencies.