Recent revelations show the US government sold 195,000 BTC, missing out on a potential $17 billion.
A $17 Billion Miscalculation
The US government often seizes Bitcoin through law enforcement actions, particularly in cases involving illicit activities. Instead of holding onto these assets, the government has historically auctioned them off at relatively low prices. For example, in 2014, the government sold 30,000 BTC confiscated from the Silk Road marketplace. At that time, Bitcoin was trading at just a few hundred dollars per coin. Today, that same Bitcoin would be worth over $2 billion.
Potential Policy Change Under Trump
With Trump signaling a more pro-crypto stance, the question remains whether a future administration would rethink its approach to handling seized digital assets. If Bitcoin continues its upward trajectory, holding onto these assets could prove to be a smarter financial move rather than selling them prematurely.
David Sacks' Role
David Sacks, a key crypto advisor to Donald Trump, highlighted the government's significant misstep in handling Bitcoin. His remarks emphasize the importance of long-term thinking in crypto policy. As Bitcoin adoption grows and institutional interest surges, the government may need to reconsider its approach to digital assets.
The US government's missteps in handling Bitcoin serve as a reminder of the importance of long-term strategy regarding digital assets.
