TechFlow news, August 9 — According to Cointelegraph, Charles Hoskinson, co-founder of Cardano, said that while Bitcoin serving as a U.S. reserve asset might positively impact its price, it also brings significant centralization risks. Presidential candidate Robert F. Kennedy Jr. recently proposed that the U.S. Treasury purchase 4 million bitcoins, worth over $242 billion, representing 19% of Bitcoin's total supply.
Hoskinson noted that such a move could boost Bitcoin’s price and potentially encourage greater U.S. regulatory engagement with Bitcoin. However, the United States holding such a large share of Bitcoin’s supply could lead to negative consequences, as it may enable the U.S. to leverage its geopolitical power to influence the Bitcoin market. Hoskinson warned that substantial U.S. Bitcoin holdings could raise concerns similar to those associated with other global assets, such as the formation of monopolies or cartels.
Bitcoin’s decentralized distribution of supply is one of its core strengths, making it a tamper-resistant and secure cryptocurrency. However, U.S. ownership of 19% of the Bitcoin supply could threaten this fundamental characteristic.
