hmmm never thought of this. But government will sell to whom??? They will become even more expensive because government can only hold them and the demand for btc is increasing it will only increase the price of btc not reduce it
They wouldn't sell them their purpose is to destroy Bitcoin because it's a threat it doesn't have to be the government either it could be a bank they want fiat money and not Bitcoin bitcoin is a threat and I think the majority of the attacks came from banks in the early days of Bitcoin.
AND if it did drive up the price first of all like you said it would come crashing down if this was done in a small amount of space people might be afraid of investing in Bitcoin....thus effectively killing it. I'm just raising a concern I've had and would love to see Bitcoin succeed but I should imagine the banks and te government have enough money or resources to require a lot of the Bitcoin money either from seizing or buying a large amount of Bitcoin.
Try saying the same thing using the word "gold" in place of the word "bitcoin" and maybe you'll see how silly it sounds:
If the government really wanted to fuck gold they would only need to folk out a few million and buy out most of the gold in existence right now and gold would become worthless. they see it has a threat so this is going to happen if we like it or not. They have a plan and this is probably it. theres only 312,500 tons in existence right now thats like a few trillion dollars right? the government can afford that. All they would have to do is buy anonymously and offer 10% more than the current price peoples greed would take over and it would then be fucked gold would become worthless in less than a week.
unless we have a way of protecting this? did not think so.