The idea of Bitcoin becoming the reserve asset of the United States poses significant centralization risks for the world’s first cryptocurrency despite being an optimistic price catalyst, according to Charles Hoskinson.
Making Bitcoin a reserve asset for the US was recently floated by presidential candidate Robert F. Kennedy Junior, who said that he would sign an executive order for the US Treasury to purchase a total of 4 million Bitcoin
BTCUSD
worth over $242 billion at today’s valuation.
Notably, that would represent 19% of the Bitcoin supply, said Charles Hoskinson, co-founder of Input Output Global and Cardano.
Hoskinson told Cointelegraph:
“It's a mixed bag. On one hand, it would be great for the price of Bitcoin, and it would be great for U.S. regulation of Bitcoin because the United States would be pro-Bitcoin in a certain respect.”
Bitcoin has recently staged a 21% recovery above the $60,000 mark after this week’s $510 billion crypto market sell-off nuked BTC price to a five-month low of $49,500 on Aug. 5, before the market started to recover.
