With all this talk about national reserves, that idea basically means governments would be buying Bitcoin which means they could become even bigger players than institutional investors, since they have access to public resources.
I would not say this so categorically, since some corporations already have more resources than some countries. It seems to me that institutional investors and countries with bitcoin reserves can be considered to be at about the same level. In addition, many big players already have an impressive amount of bitcoin, which gives a serious head start.
They could buy as much as they want, and if multiple countries start doing this, they’ll end up owning a huge piece of the pie.
No one can buy endlessly, because any budget is limited. Even for such big players as countries. Again, most of this pie is already in other hands. But countries have another way to get a share of this pie - by force.
Now the question is -- is that really what we want to see?
I can't speak for others, but I don't really like this trend. Instead of decentralizing bitcoin by distributing it among a large number of people, bitcoin is being concentrated in the hands of a small circle of people, which clearly won't benefit decentralization.
And more importantly, will ordinary people still benefit from it?
Hardly. All this is not being done for the simple benefit of ordinary people.