Re: I don't like the idea of governments holding millions of Bitcoins.
Well, you are seeing this from one angle and failing to see it from another angle, the dangers you talked about are there just as you have described it, but did you even bother a bit to ask yourself, what it will take to buy up to 2 million or more bitcoin from the open market? Even buying 50,000 bitcoin can drive the price of bitcoin up high to the roof, not to talk of buying up to 1 or 2 million bitcoins, buying up to this mentioned about of bitcoin, I can tell you will drive the price of bitcoin to nothing less than a million Dollar, now think about what will happen when one have to spend up to a million dollars just to own 1 bitcoin, and you need like 1 million bitcoins, and remember the more you buying, the more expensive it gets.
I must be honest, I don't like the idea of the government holding such amounts of Bitcoin, but for now, I'm not too bothered about the government having that amount of Bitcoin because I see all these talks as just campaign strategies. Politicians talk a lot before they're elected and when they get elected they find out that it's not as easy as they think it is, that's if they have any plans of implementing what they said.
Let's assume the government wants to buy 2 million BTC at the current price of $64,000, that's a total of about $128 billion. I do not think such an amount of money would be released for any president to buy Bitcoin. Except it's a dictatorship, he alone doesn't have that much power. But even if he does, like you said, the more they buy the more the price goes up. It may not go up as much as a million dollars, but it will go up a reasonable amount and it would become more difficult for them to buy up to 2 million btc.
They don't need to spend $128 billion to buy a large amount of bitcoin at once, they can use the same DCA strategy we are using. We should not underestimate the fact that they could buy the majority of bitcoin if they really wanted to do it and it wouldn't be too difficult for them. Governments may not be getting into the game anytime soon, but it is happening for major financial institutions. I believe that BlackRock owning millions of bitcoins is something that will happen sooner or later.
In just a few months since bitcoin ETFs were approved, they have bought and held over 300kBTC and it was only a matter of time before they had 1 million BTC.
Source: X.com