I'm still
skeptical about massive Bitcoin reserves for governments but the influence on the "Bitcoin is dead?" narrative could indeed help to change the sentiment in the next bear market, and make it plummet less because less people could fear to lose everything when Bitcoin "dies".
Yes, well, there are many things I don't like about governments, such as printing fiat currency left, right, and center, but I accept it and try to act accordingly.
Thus: Is Bitcoin now "too big to die"? Could this accelerate the volatility reduction we're already witnessing, and finally pave the road to make it a more stable and "solid" asset, and a true gold competitor?
I think so. Normally, without governments getting involved in long-term games, volatility would decrease. With the entry of major players, not just governments, who buy to HODL, not to trade, volatility will normally decrease, and anyone who insists that Bitcoin is a Ponzi scheme and will go to zero is simply being ridiculous. The fiat system is indeed a Ponzi scheme, and it is the one that governs our lives.