Part 2/7:
Pros and Cons of Government Bitcoin Reserves
Pros of Strategic Government Reserves
One significant advantage of a government acquiring Bitcoin is that it can potentially increase the fiat price of Bitcoin. A government’s endorsement can also lend legitimacy to Bitcoin, helping to shift public perception to view it as a serious asset.
Cons of Strategic Government Reserves
On the flip side, the measure is hindered by several drawbacks. For one, there are concerns regarding the motivations behind a government purchasing Bitcoin. If a government is perceived as corrupt or incompetent, acquiring Bitcoin could serve more to its interests than the public's. Moreover, countries such as the U.S. already face substantial public debt, limiting their financial maneuverability.