One of the best arguments I have heard so far as to why a government should not buy Bitcoin is that the money they would need to borrow to accumulate sufficient Bitcoin could cause drastic inflation, and devastate the public. While I am not arguing that the borrowing of significant funds does not cause inflation, and deprive the public of their buying power, I do think the funds needed to buy Bitcoin would be relatively insignificant. Take for instance this graph by Joe Burnett.
https://preview.redd.it/zi93etwtztvd1.png?width=653&format=png&auto=webp&s=dc24fdb751fc9863ae950a1d3b513ad6386a5092
Now obviously if you tried to smash buy 7 million coins the price would rise so fast you would need much more than the current value to acquire them all, but for a more reasonable number like 250k or 500k, I think the US could acquire the Bitcoin without the public noticing any change in the rate of inflation. Sure it would cause some small short term inflation, but the upside would be incredible, especially if they still had the first mover advantage. Just my 2 sats.
submitted by /u/MSTR_CallsAtOpen [comments]
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