Who’s got the most Bitcoin among governments?

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It turns out that governments around the globe are sitting on a treasure trove of 471,000 Bitcoin, which is about 2.5% of all Bitcoin out there. But who is the biggest holder?

Bitcoin is for everyone

So how did these governments come to own so much Bitcoin? It’s a mix of seizing assets from criminals, making strategic purchases, and even accepting donations.

More and more, governments are figuring out how to leverage Bitcoin as both a financial asset and a way to modernize their economies. Let’s take a look at the numbers, who owns the most?

The U.S. is the heavyweight champion when it comes to government Bitcoin holdings, with 212,000 BTC in its arsenal. Most of this Bitcoin came from law enforcement actions against cybercriminals and shady online marketplaces.

Major sources include the infamous Silk Road shutdown, which netted 69,370 BTC. The recovery of 94,636 BTC from hackers involved in the Bitfinex hack in 2022, and the seizure of 50,676 BTC during the arrest of Jimmy Zhong in 2022.

The U.S. government tends to auction off some of its holdings but keeps a pretty big portion for research or long-term storage.

This control can impact market trends since their sales often lead to price fluctuations.

East and West

Despite its strict stance on crypto trading and mining, China holds the second-largest reserve of Bitcoin with 194,000 BTC.

Most of this was acquired through the crackdown on fraudulent schemes like the PlusToken Ponzi scheme, which scammed over $2 billion in crypto.

Even though China has banned crypto trading, it’s holding onto its confiscated Bitcoin instead of selling it off, possibly as a hedge against the growing acceptance of digital currencies worldwide.

The UK is making strides in combating financial crimes related to digital assets and has amassed 61,000 BTC.

This Bitcoin mainly comes from confiscations tied to illegal money laundering activities. The UK government has been auctioning off seized cryptocurrencies to fund more policing efforts, talk about turning crime into cash.

Governments and Bitcoin, a good match or a nightmare?

When a government holds a hefty amount of Bitcoin, it can significantly influence the market.

Big sell-offs can lead to price volatility, while announcements of purchases can boost market confidence.

Bitcoin is also becoming a geopolitical tool. Countries like El Salvador are using it for economic development, while Ukraine is leveraging it for wartime funding.

Meanwhile, major economies like the U.S. and China are using their holdings to enhance regulatory oversight and tackle illegal activities.

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Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Kriptoworld.com accepts no liability for any errors in the articles or for any financial loss resulting from incorrect information.

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