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US Government Accumulating Bitcoin Could Pose Risks, Warns Expert

20.08.2024 16:00 1 min. read Alexander Stefanov
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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.

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.

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