Reserve

Cardano

Core

Bitcoin

<ul>
 <li>Charles Hoskinson warns that the US government holding 19% of Bitcoin's supply could threaten its decentralization.</li>  
 <li>Centralization could discourage global adoption of Bitcoin, with other governments hesitant to invest.</li>  
 <li>Despite potential short-term price spikes, Hoskinson cautions about long-term risks, including compromised Bitcoin values.</li> 
</ul>  
<p><a href="https://cryptonewsland.com/charles-hoskinson-gen-z-and-millennials/" target="_blank" rel="noopener noreferrer nofollow">Charles Hoskinson</a>, the founder of Cardano (ADA), is sounding the alarm on a controversial proposal that could see Bitcoin becoming a US reserve asset. The idea involves the US Treasury purchasing a staggering 4 million BTC—about 19% of Bitcoin’s total supply.&nbsp;</p>  
<p>Such a move could spike Bitcoin’s price and usher in favorable regulations. However, Hoskinson warns of significant risks that could overshadow these benefits.</p>  
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<h2 class="wp-block-heading" id="h-a-centralization-threat-to-bitcoin-s-core-values">A Centralization Threat to Bitcoin’s Core Values</h2>  
<p>Hoskinson’s primary concern revolves around the centralization of power. If the <a href="https://www.usa.gov/" target="_blank" rel="noopener noreferrer nofollow">US government</a> were to acquire nearly one-fifth of Bitcoin’s supply, it would gain enormous influence over the digital asset market.&nbsp;</p>  
<p>To put this into perspective, the largest Bitcoin holder today is Binance, which controls just 1.26% of the supply—worth around $15 billion. The US holding 19% would be an unprecedented concentration of power in a market designed to be decentralized.</p>  
<p>While the initial impact might seem positive, with <a href="https://www.coincarp.com/currencies/bitcoin/richlist/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin holders</a> likely seeing short-term gains due to the massive buying pressure, the long-term implications could be detrimental. Bitcoin’s decentralized nature, one of its most cherished features, could be severely compromised.</p>  
<h2 class="wp-block-heading" id="h-global-adoption-could-take-a-hit">Global Adoption Could Take a Hit</h2>  
<p>Another critical issue Hoskinson raises is the potential impact on global adoption. If the US were to hold such a significant portion of Bitcoin, it might discourage other governments and large institutions from investing in the cryptocurrency.&nbsp;</p>  
<p>The concern is that with the US exerting so much control, other nations might be hesitant to embrace <a href="https://cryptonewsland.com/michael-saylor-bitcoin-solution-for-all/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin as a global asset</a>. This could stall the widespread adoption that many in the crypto community are striving for.</p>  
<p>While the prospect of Bitcoin becoming a US reserve asset might initially seem appealing, Charles Hoskinson warns of hidden risks that could have far-reaching consequences. The threat of centralization and its potential to hinder global adoption are serious concerns that deserve careful consideration.</p> 
<p>The post <a href="https://cryptonewsland.com/cardano-ceo-warns-of-bitcoin-risks/" rel="noopener noreferrer nofollow">Cardano CEO’s Warning: The Hidden Risks of Bitcoin as a US Reserve Asset</a> appeared first on <a href="https://cryptonewsland.com" rel="noopener noreferrer nofollow">Crypto News Land</a>.</p>

Cardano CEO’s Warning: The Hidden Risks of Bitcoin as a US Reserve Asset

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