Ex-Goldman Sachs executive Raoul Pal believes that the US government accumulating millions of Bitcoin (BTC) is not all good news for the crypto king.
During the recent Bitcoin2024 Conference, independent presidential candidate Robert F. Kennedy Jr. said that his administration would stockpile four million Bitcoin as a strategic reserve asset if he won the election.
At the same event, Senator Cynthia Lummis announced that she proposed a bill that will drive the US government to accumulate one million BTC or 5% of BTC’s total supply in five years.
But macro guru Raoul Pal is concerned about the potential behavior of the US government once it builds a huge Bitcoin trove.
In a discussion with Skybridge Capital founder Anthony Scaramucci, Pal says the government has a history of abusing power, and having a big BTC reserve puts it in a position to greatly influence Bitcoin’s price action.
“Yes, it’s good for the crypto market because there’s yet another buyer but it’s also weird because Bitcoin was set up to try and replace the government’s control over money, and now you’re inserting the government as one of the largest buyers of private money.
I don’t really like that actually…
If the government can manipulate it, they could dump it onto the market, they could buy more and before you know it, they’re using it like they are interest rates in controlling regular money, and we don’t want that.”
At time of writing, Bitcoin is trading for $58,464, down slightly on the day.
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