Raoul Pal has voiced concerns about possible consequences of US government accumulating large amounts of bitcoin.
Statements at Bitcoin2024 Conference
During the recent Bitcoin2024 Conference, independent presidential candidate Robert F. Kennedy Jr. said that his administration would stockpile four million Bitcoin as a strategic reserve asset if he won the election. At the same event, Senator Cynthia Lummis announced that she proposed a bill that will drive the US government to accumulate one million BTC or 5% of BTC’s total supply in five years.
Raoul Pal's Concerns
Macro guru Raoul Pal expressed concerns about the potential behavior of the US government once it builds a huge Bitcoin trove. In a discussion with Skybridge Capital founder Anthony Scaramucci, Pal remarked that the government has a history of abusing power, and having a big BTC reserve positions it to greatly influence Bitcoin’s price action. “Yes, it’s good for the crypto market because there’s yet another buyer but it’s also weird because Bitcoin was set up to try and replace the government’s control over money, and now you’re inserting the government as one of the largest buyers of private money. I don’t really like that actually... If the government can manipulate it, they could dump it onto the market, they could buy more and before you know it, they’re using it like they are interest rates in controlling regular money, and we don’t want that.”
Current Bitcoin Price
At the time of writing, Bitcoin is trading for $58,624, down slightly on the day.
Raoul Pal emphasizes that US government’s accumulation of bitcoins could have both positive and negative implications for the crypto market.
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