I don't think Bitcoin would "die" in such a scenario, but I think it could lose a lot of value and confidence. And the scenario is not that unlikely to be ignored.

What do you think? I added a poll also with an intermediate scenario like the one announced by Trump, which would lead to a couple of hundred thousands of BTC hold by states, but not millions.

Huge number of supply which has been acquired again by institutions.

But if they don't purchase huge volume I also don't think that we could reach this far since if we really on community demands maybe its not enough to pump bitcoin up to the current price or maybe for more.

What I don't like on what they have done is possible manipulation attempt especially if they decide to move the market on their dumping antics. Since for sure this action could affect the decisions of some people especially they think that huge institutions or country are big contributors for acquiring huge demand for bitcoin.

OFAC already does that. They have a list of "sanctioned" addresses that they are forcing the American miners to "censor".

I stand in the same point of view as you regarding the dislike of the government's ideas holding millions of Bitcoin because in my opinion they can do with the strength they have. For parties outside the government will feel difficult. An imbalance will also be the thing that will be felt with the amount of Bitcoin remaining from the total.
But if I think long, this is not an obstacle that will make Bitcoin road in other words will not 'die' even though the scenario is like that.

I stand in the same point of view as you regarding the dislike of the government's ideas holding millions of Bitcoin because in my opinion they can do with the strength they have. For parties outside the government will feel difficult. An imbalance will also be the thing that will be felt with the amount of Bitcoin remaining from the total.
But if I think long, this is not an obstacle that will make Bitcoin road in other words will not 'die' even though the scenario is like that.

- The US buys 1-2 million BTC, other states/central banks like the ECB, China and India follow, and together they hold let's say 5-7 million (about 25%-35% of all existing Bitcoins).

Some Bitcoiners seem to be enthusiastic about plans by politicians to buy or hold big amounts of Bitcoin as part of a "strategic reserve". In particular, Kennedy's announcement that in the (extremely unlikely) case he wins the US election he could buy up to four million Bitcoins as a strategic reserve.

I don't like this idea for the following reason:

States holding such a big amount could interfere too much into Bitcoin's power equilibrium.

Let's see the following hypothetical scenario:

- The US buys 1-2 million BTC, other states/central banks like the ECB, China and India follow, and together they hold let's say 5-7 million (about 25%-35% of all existing Bitcoins).
- Now the FATF sets up a new "recommendation" that a blacklist for "sanctioned" Bitcoin addresses (like those already implemented in Tether and other stablecoins) would be desirable.
- As almost all states obey the FATF's guidelines, together they pressure Bitcoin Core team to implement a blacklist for "sanctioned" Bitcoin addresses which miners have to obey, or alternatively build an own Bitcoin client with a modified protocol.
- This would of course need a hard fork. But they have a lot of coins, so they can increase pressure by threatening to sell all Bitcoins on the chain which does not follow the hard fork. This has a precedent: it's what Ethereum did when they pressured for the hard fork rewinding the TheDAO hack in 2016.

A similar scenario was already discussed for ETFs. But ETFs would never hold so many coins as some are desiring for states/governments to hold, and also their customers could react, so for ETFs I don't see this danger. Up to 1 million, even 2 millions of BTC hold be states/governments/central banks would still not be something to be worried about. But if all bigger states try to buy millions, then it could become really dangerous.

I don't think Bitcoin would "die" in such a scenario, but I think it could lose a lot of value and confidence. And the scenario is not that unlikely to be ignored.

What do you think? I added a poll also with an intermediate scenario like the one announced by Trump, which would lead to a couple of hundred thousands of BTC hold by states, but not millions.