States holding such a big amount could interfere too much into Bitcoin's power equilibrium.
The fact is what really can anyone do???
The only thing is bitcioners can try to hold as much as they can hopefully the government doesn't get hold of enough coins to violently shake the market.
Hopefully bitcoin doesn't turn out like diamond that was over time accumulated and is currently run by a single body.
Yeah, but who owns the majority of the money? The government, institutions, Asset managers and the Billionaires own the majority of money
in the world, and guess what, Which people are majorly into Bitcoin before we start witnessing the current institutional adoption, well, is the average people like you and I, and some percentage of millionaires.
Now if you talk about people holding of their Bitcoin without selling, well, the sad news is that you don't control what the other person wants to do with his or her Bitcoin sell or hodl, and furthermore if the government wishes to acquire more BTC they will always have a way of getting a hold of larger amount of Bitcoin into their portfolios, similar to the way we have seen Bitcoin get into the hands of the US and the German government.
And if that is not enough they can equally find a way of shorting the Bitcoin market through their regulatory policies or via institutional Asset managers to forcefully make people sell their Bitcoins, So who knows other reason behind BlackRock steady buying of Bitcoin through ETFs, that could possibly be a way to try to get a larger share of it so they can move the market whichever way they want to.