United States Government Controls Over $7.2 Billion Worth of Bitcoin
Data from on-chain analytics firm Glassnode reveals that the United States government currently controls 210,429 BTC, valued at over $7.2 billion as of October 31st. The US Department of Justice (DOJ) and Internal Revenue Service (IRS) have become unintentional Bitcoin whales due to confiscations made through legal proceedings. Despite selling a small percentage of the seized Bitcoin at auctions, the government has missed out on potential gains of over $6 billion so far. This is because they sold too soon, according to statistics compiled by Jameson Lopp, co-founder of Bitcoin custody firm Casa.
The DOJ’s Heavy Bitcoin Bag
The US government’s Bitcoin stash continues to grow with each new announcement of confiscations. For instance, in early 2022, the inventory increased by nearly 100,000 BTC, worth $3.6 billion at the time, following legal action against individuals involved in attempting to launder proceeds from a 2016 hack of crypto exchange Bitfinex. Comparatively, no single entity other than Satoshi Nakamoto owns more BTC than the DOJ. The largest corporate BTC treasury belongs to MicroStrategy, which currently holds 158,245 BTC valued at $5.43 billion.
Accusations of Suppressing Crypto Growth
Billionaire investor Tim Draper, who participated in the original BTC auction, recently accused the US government of stifling cryptocurrency growth. He had previously predicted a price tag of $250,000 for Bitcoin in 2022 but now claims that policy failures are “killing the golden goose of Silicon Valley.” Draper believes that regulations are smothering innovators and hindering progress in the industry.
Hot Take: US Government’s Missteps in Bitcoin
The US government’s control over a significant amount of Bitcoin gives it immense power and influence in the cryptocurrency market. However, its handling of the seized BTC has been less than ideal. By selling off portions of its holdings too early, the government has missed out on potential gains of over $6 billion. This not only highlights their lack of expertise in navigating the volatile crypto market but also raises questions about their ability to effectively manage and capitalize on seized assets. As the crypto industry continues to evolve, it is crucial for governments to adapt their strategies and approach to maximize the benefits of digital assets.
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