States holding such a big amount could interfere too much into Bitcoin's power equilibrium.
Thank Goodness you raised this topic was starting to think like didn't no one notice it? Infact emphasis of that statement being In bold.
Bitcoin is a decentralised currency yeah we all know but let's not forget the fact that the decentralisation of the bitcoin network is based on majority meaning chances have it that bitcoin can be forcefully centralised.
Starting from mining which runs on a 51% rule to fees which is dependent on average transaction fees in that block to even then whole bitcoin price which depends on selling and buying rates that in turn is dependent on major holders and whales.
Take for example Bitcion crossing over $70k with bitcioners cheering about it then boom the German incident happened and since then bitcoin has been struggling back to $70k which was almost a new low.
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.
Not that am wishing but bitcoin could be headed in that direction if many individual bitcoiners don't cultivate the hodling culture even in bad times. If we check carefully we will discover that most of these bitcoin that are in government wallet were BTC that they have been holding for almost decade even though some were confiscated just like the German government. Some bitcoin hodler are in a hurry to sale at every circle that comes with the bullrun but does the government also sale in such a hurry? I am not sure. So maybe we should intensify emphasis on the HODLing campaign among we bitcoiners because that's the only way we don't let the government get hold of such amount of bitcoin that could make them gain that much power to interrupt the equilibrium.