Ex-BitMEX boss Arthur Hayes is warning about the US creating a Bitcoin reserve, because according to Hayes, turning Bitcoin into a national stockpile could make it a “political weapon,” leading to chaos in the crypto market.
Political changes
Hayes argues that a US Bitcoin stash could be sold off by future administrations for political reasons. Imagine the Democrats winning in 2028 and dumping the Bitcoin to fund social programs, punishing crypto investors who supported the previous administration.
It’s possible, but also worth to remember, Bitcoin can’t be printed, if it’s sold, it’s over, no more money.
Hayes believes the potential Bitcoin reserve is more about political maneuvering than financial smarts.
Outlier opinion? Or reasonable concern?
Of course, not everyone agrees with Hayes’ doom-and-gloom scenario. VanEck thinks a Bitcoin reserve could slash America’s national debt by 35% by 2049. But for paying off debt, it have to be… sold.
Michael Saylor, founder of MicroStrategy, or in the newer name, Strategy B, Bitcoin’s biggest corporate supporter believes a Bitcoin reserve could boost the US dollar and help the country dominate the digital economy.
Hayes believes the same and even admits that, in theory, Bitcoin could outperform traditional treasury assets. He calls Bitcoin the “most pristine form of monetary energy humanity has ever conceived.” He’s probably right, btw.
Game theory inside and outside
Hayes’ warning highlights the potential risks and political gamesmanship behind a US Bitcoin reserve, and the point is, these are legit concerns.
While some see dollar signs and economic strength, others fear political meddling and market instability. The debate is clearly far from over.
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