Originally published on: August 09, 2024
Charles Hoskinson, co-founder of Input Output Global and Cardano, believes that the idea of Bitcoin becoming the reserve asset of the United States could have significant risks despite being a positive price driver. This proposal was recently suggested by presidential candidate Robert F. Kennedy Jr., who mentioned signing an executive order for the US Treasury to acquire 4 million Bitcoin, equivalent to over $242 billion.
While this move could potentially boost Bitcoin’s price, Hoskinson warns about the centralization risks that come with the US holding 19% of the Bitcoin supply. He emphasized the importance of Bitcoin’s decentralized supply distribution in maintaining its tamper-proof and secure nature, stating that this new development could lead to unwanted consequences.
Following a recent market sell-off, Bitcoin experienced a 21% recovery above the $60,000 mark, marking a significant rebound from its five-month low of $49,500. Hoskinson also noted the increasing accessibility of cryptocurrencies to retail investors through new Bitcoin and Ether exchange-traded funds (ETFs) on Wall Street, with expectations for more crypto ETFs, including an ADA ETF, in the future.
In addition to these developments, the European markets may soon see the introduction of the first Ether staking ETF, further signaling the growing adoption of cryptocurrencies. Despite the potential benefits of these advancements, Hoskinson advises caution in navigating the changing landscape of the crypto market to avoid unforeseen risks.
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