A prominent figure in the crypto industry has expressed concerns about the proposal of a U.S. Bitcoin reserve, stating that it could have more negative effects than positive ones.
Arthur Hayes, the Chief Investment Officer of Maelstrom Fund, believes that a national stockpile of Bitcoin would likely be used as a political tool and could be manipulated depending on which political party is in power.
Hayes pointed out that under such a scheme, Bitcoin would simply become another financial asset that can be sold off whenever it suits political agendas. While he acknowledges that an initial government purchase of Bitcoin could drive up prices, he emphasizes that its long-term use would be driven more by political motivations rather than economic or financial goals.
While Hayes expresses skepticism, others in the industry, including investment firms like VanEck, have presented more positive views. They argue that a Bitcoin reserve could potentially help reduce the U.S. national debt in the long run and some even suggest that it could stabilize the U.S. dollar. Figures like Michael Saylor believe that it would position the U.S. as a dominant force in the global digital economy.
Despite these differing perspectives, Hayes remains cautious and suggests that such a reserve would still be subject to future political changes. His concerns about the political influence of Bitcoin reserves are reinforced by his past opposition to Bitcoin ETFs, where he warned that they could create a more centralized Bitcoin market, weakening the overall network.
The discussions surrounding a U.S. Bitcoin reserve are ongoing, with influential figures like Senator Cynthia Lummis advocating for the idea, and market speculators assigning probabilities to its potential launch. However, Hayes firmly opposes any government involvement that could destabilize the decentralized nature of Bitcoin.