Ex-Goldman Sachs director Raoul Pal believes that the collection of millions of Bitcoin (BTC) by the US government is not all good news for the crypto king.
At the recent Bitcoin2024 conference, independent presidential candidate Robert F. Kennedy Jr. that his government would set aside four million Bitcoin as a strategic reserve if he won the election.
At the same event, Senator Cynthia Lummis announced that she has introduced a bill that will direct the US government to accumulate one million BTC or 5% of the total supply of BTC over five years.
But macro guru Raoul Pal is concerned about the potential behavior of the US government once it builds up a huge Bitcoin hoard.
Speaking to Skybridge Capital founder Anthony Scaramucci, Pal says the government has a history of abusing power, and having a large BTC reserve allows it to heavily influence Bitcoin’s price action.
“Yes, it’s good for the crypto market because there’s another buyer, but it’s also weird because Bitcoin was set up to try to replace government control over money, and now you’re adding the government as one of the biggest buyers of private money.
I actually don’t like that that much…
If the government can manipulate it, they can dump it on the market, they can buy more and the next thing you know, they’re using it as if they were interest rates to control regular money, and we don’t want that.”
At the time of writing, Bitcoin is trading at $58,464, down slightly on the day.
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