Unknown Buyer Sparks Speculation of Nation-State Accumulating Bitcoin
An unknown address has been on a Bitcoin buying spree, accumulating around 100 BTC daily since November 2023. This has caught the attention of the crypto community and led to speculation that a nation-state other than El Salvador may be behind the purchases. The buyer is nicknamed “Mr. 100” due to their consistent daily purchases.
Possible Involvement of a Nation-State
There are discussions suggesting that the buyer may belong to a small to medium nation-state that has learned the importance of owning the “real thing” rather than derivatives like spot Bitcoin exchange-traded funds (ETFs) offered by some US institutions. The theory is based on the advantage of Bitcoin’s self-custody feature, which eliminates the risk of assets being frozen or confiscated in case of political disagreements.
Appeal of Bitcoin for Nation-States
Nation-states are attracted to Bitcoin due to its decentralized nature and immunity to censorship. Unlike traditional assets like gold, Bitcoin doesn’t require a third-party custodian, making it less vulnerable to sanctions imposed by governments. This feature makes it appealing for countries seeking financial sovereignty.
Uncovering the True Identity of “Mr. 100”
The true identity of “Mr. 100” remains unknown as Bitcoin’s pseudonymous nature protects the holder’s privacy. While there were speculations about El Salvador being behind the wallet, they have recently stated that their BTC holdings have been moved to a custodian within the country. Therefore, it is likely that another nation-state is accumulating Bitcoin.
Legitimizing Bitcoin as an Asset Class
The potential involvement of nation-states in accumulating Bitcoin further legitimizes the asset class and strengthens the ongoing narrative of crypto adoption. This may encourage more individuals and institutions to adopt a “buy-and-hold” strategy, similar to early adopters who have seen significant gains.
Institutions Accumulating Bitcoin Despite Price Pressure
Despite Bitcoin’s current price pressure and trading below $70,000, institutions are still accumulating the cryptocurrency. BlackRock recently purchased $570 million worth of Bitcoin, increasing their holdings to over 223,600 BTC. This indicates continued interest and confidence in the long-term value of Bitcoin.
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