Bitcoin (BTC), valued at over $7.2 billion, is still under the control of the United States government, but the losses for the government-owned Bitcoin are continuously increasing. Data from Glassnode, an on-chain analytics firm, reveals that the US government currently holds 210,429 BTC as of October 31.
The US Department of Justice (DOJ) and the Internal Revenue Service (IRS) are recognized as one of the world’s largest Bitcoin whales due to the substantial amount of BTC they have confiscated over the years. Although a small percentage of the confiscated BTC has been sold through auctions, the majority remains in the possession of the government. Individuals who have purchased the auctioned Bitcoin have seen significant profits. Interestingly, the DOJ, despite being a large holder of Bitcoin, has sold off its holdings prematurely, missing out on potential gains. According to statistics compiled by Jameson Lopp, co-founder of Bitcoin custody firm Casa, the government has missed out on an estimated $6 billion in potential profits from its sale of 195,092 BTC.
In terms of Bitcoin ownership by entities, the DOJ possesses more BTC than any other single entity, including the mysterious Satoshi Nakamoto. The largest corporate BTC treasury belongs to MicroStrategy, which currently holds 158,245 BTC valued at $5.43 billion, according to BitcoinTreasuries.
Glassnode’s data indicates that the DOJ’s Bitcoin stash continues to grow as more confiscations are announced. In early 2022, the government’s Bitcoin holdings increased by approximately 100,000 BTC, worth $3.6 billion at the time, due to legal action against individuals accused of attempting to launder the proceeds from the 2016 hack of Bitfinex, a major cryptocurrency exchange.
Billionaire Tim Draper, one of the original bidders in Bitcoin auctions, recently criticized the US government for hindering the growth of cryptocurrencies. Draper had previously predicted that Bitcoin would reach a price of $250,000 by 2022 but now claims that policy failures are “killing the golden goose of Silicon Valley.” In a post from May, he stated that regulations are stifling innovation.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.
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