The continuous conflict between the crypto currency Bitcoin and the ruling Government of the federation, has been in the spotlight for a very long time now, generating countless headlines of controversies and crackdowns. This is shocking as the US Government is one of the biggest stockholders and investors of Bitcoin. The cryptocurrency is traded off in publicly held auctions hosted by the Agency of Enforcement of Law within the Department of Justice i.e., the US Marshal Service. As such, The Marshals Service of the USA has become one of the leading traders of crypto currencies and is directly accounted for the auctioning of billions of Bitcoin currencies, that were reportedly under confiscation.
However, little has been uncovered regarding the handling of Bitcoins by the government. An article in “Fortune” scrutinized the strategies adopted by them to handle the billions of dollars’ worth cryptocurrency, leading to the following:
- The volatility of price of cryptocurrencies has caused financial disruptions in the Government’s plans.
- The profit-making strategy attempted by the Government: The agencies of the Government auction off several priceless objects and treasurable metals, whose prices do not fluctuate in the market, with time, as is expected, unlike the case of crypto currency assets. If the sale of Bitcoins is strategically timed in a way that the cryptocurrency pays off the budget with the sale dividends then it will be profitable, but the government has been criticized for selling their Bitcoins at inexpensive rates.
What is the worth of Bitcoin in the Government treasury?
The Fortune piece confirmed that the dates of publication and confiscation do not match. There are no archived records, nor copies of reports on paper or addresses of linked wallets. The discrepancy and difficulty in traceability has unsettled the trade market and thrown the cryptocurrency into the vortex of questions and increasing doubts. Apart from this, many investors have lost their private keys resulting in an increasing stash of unauthorized and untradeable crypto currencies.