The creation of Bitcoin (BTC) may lead to the creation of negative effects of the market for the BTC and the US dollar, according to Haider Rafique, the global administrative partner of government relations and investors at Crypto Exchang OKX.
Rafique Cointelegraph told that any government carrying large parts of BTC supplies can manipulate prices by throwing its shares on the market, thus disrupting the basic proposal of BTC as neutral funds, not central.
He asked: “What happens within a few years if a new administration decides that this is a bad idea?” Rafique added:
“Despite the recent support of the two parties for encryption, it is necessary to remember that administrative policies can change quickly. With the change of conditions over time, the concentration of large quantities of BTC can be on the country’s public budget, the risk of filtering.”
Raveck said that the German government was an example of this in 2024 when it unloaded 50,000 BTC, which kept the prices below the level of $ 60,000.
Bitcoin strategic reserves are still one of the best minds for many Bitcoin advocates, who say that the creation of such a cabinet at the national level is the next step to make Bitcoin global currency and standard monetary account unit.
Related to: American lawmakers click on Silor, Lee to submit a bitcoin reserve bill
Risks on the US dollar and other financial markets
“The creation of a strategic reserve for Bitcoin can create an enemy that will not only be limited to encryption markets and will have widespread macroeconomic effects.
“The most important effects of the macroeconomic economy are the loss of confidence in the dollar,” he said.
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He added that building the US dollar, which supports the global economy, is weak and cannot maintain its value on economic power alone.
This could send a shock through the entire financial system, as investors escape from the US dollar in search of guaranteed assets such as gold or Swiss franc.
He concluded that investors also empty assets, creating a series of references across the financial markets that are likely to be crowned with great disruption, as markets respond to seismic transformation in global financing.
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The post Don’t blindly Cheer for a Bitcoin Strategic Reserve — Crypto Exec first appeared on Investorempires.com.
