US Government's Bitcoin Holdings
New data from on-chain analytics firm Glassnode reveals that the US government currently controls over $7.2 billion worth of Bitcoin (BTC), making it one of the largest Bitcoin holders in the world. These bitcoins have been seized through various legal proceedings by the US Department of Justice (DoJ) and the Internal Revenue Service (IRS).
Missed Opportunities
Despite holding such a significant amount of Bitcoin, the US government has missed out on potential gains. According to Jameson Lopp, co-founder of Bitcoin custody firm Casa, the government has sold off 195,092 BTC, resulting in a total loss of $6.3 billion. This is due to the government selling its seized Bitcoin at lower prices than the current market value.
Growing Bitcoin Stash
The DoJ's Bitcoin holdings have been increasing over time as more confiscations take place. In early 2022, the government's inventory grew by nearly 100,000 BTC, worth $3.6 billion at the time, after legal action was taken against individuals involved in a 2016 hack of major crypto exchange Bitfinex.
Criticisms of Crypto Regulations
Billionaire investor Tim Draper, who participated in the original Bitcoin auctions held by the US government, has criticized the government for stifling crypto growth. He believes that regulatory failures are hindering innovation and preventing the full potential of cryptocurrencies from being realized. Draper had previously predicted a Bitcoin price of $250,000 for 2022.
Note: This article does not provide investment advice. Readers should conduct their own research before making any investment decisions.
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