what impact will this have on decentralization and price stability? Could this lead to geopolitical bitcoin wars?
As governments, such as El Salvador and Russia, move into Bitcoin mining, there are definitely some concerns raise about the implications for Bitcoin's decentralization , price, and even "geopolitical Bitcoin wars."
Bitcoin was designed to be completely independently used, so that one person or country can not control everything. But when the governments starts taking over Bitcoin, they can control more, right? The United States, for example, has about 198,000 Bitcoins, which they confiscated from various criminals. Now imagine, if more countries get their hands on more Bitcoin, then Bitcoin's independence will decrease. If states have more power, then they can influence the entire network.
And since Bitcoin is so much volatile, if governments buy or sell Bitcoin, the market can fluctuate wildly. This can be very risky!
And yes, what if Bitcoin becomes a geopolitical tool for countries? Russia and Iran are already using Bitcoin to circumvent sanctions, so if more countries start looking for Bitcoin, the international situation could become even more tense, and a new war for Bitcoin could flare up.