Macro Guru: US Government Can Manipulate Bitcoin Price

Former top banker Raoul Pal believes that the US government’s accumulation of millions of bitcoins is not all good news for the digital currency. Raoul Pal is particularly concerned about the potential behavior of the US government after it bought a huge amount of bitcoin.

history of abuse of power

In a conversation with Skybridge Capital founder Anthony Scaramucci, Pal points out that the US government has a history of abusing its power. By purchasing large amounts of Bitcoin, the US government could also have a significant impact on the price of Bitcoin.

“Yes, it’s good for the crypto market, because there’s a new big buyer. But it’s also weird, because Bitcoin was once created to reduce government control over money. Now the government is going to emerge as one of the biggest buyers of that money.

“I don’t like that very much. If the government can manipulate it, they can put it on the market and then buy more without us noticing. Then they use bitcoin the same way they check interest rates on paper money. “We don’t want that,” said Raoul Pal.

However, this scenario seems unlikely. Why would the US government first buy millions of bitcoins and then dump them again? It sounds a lot like the ghost story of Raoul Pal.

Ghost Story by Raoul Ball

If you own millions of bitcoins, the last thing you want to do is cause a massive dump. It’s best to hold on to those bitcoins, hoping that more people will adopt the digital currency as their primary means of saving.

Throwing away Bitcoin in the hope that you can buy more later seems a bit naive. If the price of Bitcoin drops to a certain price, you certainly won’t be the only one buying.

In the end, all you have to do is hope that you can buy back more Bitcoin or even as much as you had. In that respect, this story basically sounds like a Raoul Pal ghost story, where the logic is a bit lacking.

The US government has no real power over Bitcoin, other than the ability to influence the price through buying and selling. More than that is not possible with the current Bitcoin protocol and in this regard, the term abuse of power does not seem to apply to the digital currency.

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