Key Points
- The U.S. government currently controls over 195,234 Bitcoin, worth more than $16 billion.
- A proposed bill aims to increase the government’s Bitcoin holdings to 1 million BTC over the next five years.
As of March 12, the U.S. government’s control over Bitcoin has been reported to be at 195,234, with a valuation exceeding $16 billion.
The government’s cryptocurrency portfolio also comprises of Ethereum (ETH) valued at $4.6 million, along with stablecoins like USDC and interest-earning assets such as DAI and AUSDC_V2.
Proposed Increase in Bitcoin Holdings
A bill recently proposed by Rep. Nick Begich could substantially augment the government’s cryptocurrency holdings. The House Strategic Bitcoin Bill seeks to secure 1 million Bitcoin, which is approximately 5% of Bitcoin’s total supply, within the next five years. If the bill passes, the value of the purchases at the current market rate would be nearly $110 billion.
Market Implications
Should the bill be passed, the Bitcoin holdings of the U.S. government would exceed the estimated 1.1 million BTC attributed to Bitcoin’s elusive creator, Satoshi Nakamoto. This would provide the government with substantial sway over market liquidity and price stability, potentially elevating Bitcoin’s value and altering market dynamics.
However, this degree of ownership ignites concerns about the centralization of an asset typically decentralized. Large-scale acquisitions could position the government as a price setter in the Bitcoin market, which some suggest contradicts the original ethos of cryptocurrency.
