US Government Holds $5 Billion Worth of Seized Bitcoins, But Reluctant to Dispose
According to Forbes research the US Treasury currently holds 207,189 seized Bitcoins worth $5 billion . But the government seems hesitant to dispose of these assets . A PhD thesis by Sachin Jaitly who is a general partner at Morgan Creek Capital suggests that the US government sees its ownership of Bitcoin as a barricade against inflation .
According to Forbes research the US Treasury currently holds 207,189 seized Bitcoins worth $5 billion . But the government seems hesitant to dispose of these assets . A PhD thesis by Sachin Jaitly who is a general partner at Morgan Creek Capital suggests that the US government sees its ownership of Bitcoin as a barricade against inflation .
Limited Impact on Inflation Protection
While the US government‘s ownership of Bitcoin may offer some protection against inflation the size of its balance sheet suggests that the $5 billion reserve may not have a significant impact . Exclusive research shared with Forbes reveals that the US is steadily increasing its Bitcoin holdings while many other countries are separating their cryptocurrencies .
Waiting for Clarity and Policy
According to a Tampa-based criminal defense attorney Leslie Sammis who has dealt with Binance seizure cases bureaucrats at the US Justice Department may be waiting for clearer regulations or policies on cryptocurrencies before deciding on the fate of the seized assets . The lack of legislative guidance or a specific departmental policy may be the reason behind the government’s reluctance to dispose of Bitcoins .
Bitcoin Flows and Government Seizures
A chart provided by blockchain analysis firm Elementus shows the Bitcoin flows of 11 countries from 2013 to 2022 . The assets held primarily come from government seizures although comprehensive information on these holdings is limited .
While the US government holds a significant number of seized Bitcoins their reluctance to sell them raises questions about their long-term strategy and the impact on inflation protection . As the cryptocurrency landscape continues to evolve policymakers and lawmakers may need to provide clearer guidelines to determine the fate of these seized assets . Until then the US government‘s Bitcoin stash remains an intriguing aspect of the growing digital currency market .
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