Summary
The US government seized $922 million worth of Bitcoin from Bitfinex hackers, adding to their substantial Bitcoin hoard. The government holds nearly 200k bitcoins worth $12.1 billion, making them one of the largest whales. Edward Snowden predicts governments will secretly acquire Bitcoin reserves. Other countries like the UK are also seizing Bitcoin assets to build up reserves. As Bitcoin becomes more legitimate, governments will likely need to maintain their own reserves to stay competitive.
Key Points
1. The United States federal government has accumulated a substantial Bitcoin hoard through various seizures and asset forfeitures, making them one of the largest whales in the market.
2. The recent transfer of $922 million worth of Bitcoin from wallets associated with Bitfinex hackers highlights the size of the federal government’s Bitcoin reserve, which is estimated to be nearly 200k bitcoins worth approximately $12.1 billion.
3. There is speculation that governments may acquire Bitcoin secretly to build up reserves, as demonstrated by the anonymous “Mr. 100” acquiring large quantities of Bitcoin daily. The UK has also seized a notable amount of Bitcoin and passed legislation to deepen its power to seize cryptocurrency assets.