The post Bitcoin Hoarding by Governments Could Lead to Global Crypto Wars – Hayes appeared on BitcoinEthereumNews.com.

Arthur Hayes, co-founder of Maelstrom has warned that a U.S. Bitcoin reserve would merely be another tradable financial asset, subject to political influence rather than long-term economic strategy. Hayes argues that a future administration could sell off the U.S. Bitcoin reserve, making it a political weapon rather than a stable economic asset. In a recent blog post on February 6, Arthur Hayes, the former CEO of BitMEX, shared his thoughts on the concept of a Bitcoin Strategic Reserve (BSR) and its potential consequences. He raised concerns about governments, particularly the U.S., stockpiling Bitcoin as a political move rather than a financial one. His post highlights how this could lead to global crypto wars and significant instability in the crypto market. Bitcoin as a Political Tool, Not a Financial Asset Hayes begins by questioning the true value of Bitcoin for the U.S. government, particularly within the existing global economic framework. He argues that Bitcoin, in its essence, is just another financial asset. While many in the crypto community revere Bitcoin as the “hardest money ever known,” Hayes points out that the motivations behind its accumulation by governments are not financial. Governments stockpile assets primarily for political gain, and Hayes suggests that Bitcoin, while lauded in the crypto community, has little to offer in terms of strategic value for political leaders. Assuming that U.S. President Donald Trump successfully creates a BSR, Hayes suggests a scenario where the U.S. government purchases one million Bitcoins, as proposed by Senator Lummis. Hayes writes, “Boom! The price goes nuts. Then, the buying concludes, and the up-only trend channel stops.” Hayes acknowledges the short-term price surge, but he warns that the excitement will likely be short-lived as the market stabilizes once the buying spree ends. Hayes raises the possibility of a change in leadership by 2028, with the…

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Filed under: News - @ February 9, 2025 4:23 pm