Bitcoin: The US government holds on to its $5 billion in BTC
The US government currently holds 200,000 Bitcoins (BTC), acquired through its actions against cybercrime and illicit online activities. However, it does not seem to be in a hurry to sell this colossal treasure.
The Origin of This Bitcoin Fortune
The value of the US government’s BTC holdings is over $5.5 billion at the current Bitcoin price. Despite its reputation for a tough stance on the crypto industry through the SEC, Uncle Sam is one of the largest Bitcoin holders.
It obtained its Bitcoin tokens through seizures during operations against cybercrime. These seizures were made as part of law enforcement and the fight against illegal online activities. The US government retains these acquired Bitcoins, making it one of the world’s largest holders of this cryptocurrency.
However, the government is not rushing to sell them because the liquidation process involves lengthy investigations and complex legal procedures. This Bitcoin reserve can, therefore, increase in value over time.
Jarod Koopman explains that the US government is not holding onto its Bitcoins to speculate on the price. It keeps them because the legal process of sale is time-consuming due to the lengthy investigations and complex procedures. It is not deliberately waiting for a price increase but is rather constrained by its own legal process.
How Will the Government Sell These Tokens?
Once the government decides to liquidate its Bitcoins, the US Marshals Service will handle the operation. Originally, liquidation was done through public auctions. But more recently, this process uses cryptocurrency exchanges such as Coinbase.
The approach of the US Marshals Service allows for a more discreet and distributed sale of Bitcoins to avoid a negative impact on the market. Indeed, a sum of $5 billion could exert significant downward pressure on the market, likely causing an asset’s price to drop.
The proceeds from the sale are then used to cover the costs of investigations or distributed to victims, as per court decisions.
While Uncle Sam does not hold these Bitcoins for speculative purposes, the value of this treasure could still increase. ETF Spot Bitcoin has a 90% chance of appreciating according to recent forecasts. If BTC reaches $250,000 before liquidation, these holdings could be worth $50 billion.
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Je suis passionnée par les cryptomonnaies, un monde que j'ai découvert il y a peine 3 ans. Mon seul but est de vous informer de cet univers incroyable à travers mes articles.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.