U.S. government holds $16B in Bitcoin, eyes 1m BTC under new bill

As of March 12, the US government controls 195,234 Bitcoin, valued at more than $ 16 billion, according to a new Nansen report.

The government crypto portfolio also includes an Ethereum value of $ 4.6 million (Ethn), stablecoins such as USDC and active active ingredients DAI and AUSDC_V2.

A newly proposed bill, presented by representative Nick Begich, could considerably increase the government’s assets. The house Bill Bitcoin Strategic Aims to acquire 1 million BTC, which involves around 5% of the total Bitcoin offer, over the next five years. If it is adopted, the value in dollars of purchases at today’s market price would be just less than $ 110 billion.

Market implications

If the bill is adopted, the Bitcoin holdings of the United States government would exceed 1.1 million BTC estimated attributed to the mysterious creator of Bitcoin, Satoshi Nakamoto. This would give the government a significant influence on market liquidity and price stability, which could increase the value and reshaping of market dynamics.

However, this level of ownership raises concerns concerning the centralization of a traditionally decentralized asset. Large-scale acquisitions could make government a price fixer on the Bitcoin market which, according to some, comes down to the original ethics of cryptocurrency.