The impact on price can occur when sales are made in large quantities compared to demand. If a country or large company that owns a large amount of Bitcoin sells a large amount of Bitcoin, it can cause a big change in price. This is based on the law of supply and demand. Whether it is directed to politics, that's the business of the person who directs it.

Behind the current decline in Bitcoin prices which has caused the market to go red, does anyone know if this is because there is a large exchange that is selling?
Regarding the information that there is an exchange that is selling Bitcoin, I found out from one of my friends.

Bitcoin is decentralized and no one can control it if more nation states accumulate BTC, then the price may decrease slightly on decentralization and price stability but this will not last long. This is the main opportunity for investors to invest if the price goes up they will get good profits. A political bitcoin war is a possible scenario which could bring major changes in the financial sector in the future. It is difficult to say what the outcome of this war will be it is certain that bitcoin and cryptocurrency will play an important role in our financial lives in the future.

If more nation-states accumulate BTC their impact on:

Decentralization:

Bitcoin network is fully decentralized, I do not think the government can be able to make the Bitcoin network centralized, they can only integrate centralized application on the Bitcoin network but can never affect the blockchain to make it centralized.  So I believe there will be no impact on the decentralization aspect of the Bitcoin network.  Holding Bitcoin which is POW, is very different from holding a cryptocurrency that has a staking feature like ETH.

If we talk about the market, obviously those who have control over huge amount of Bitcoin can always manipulate the market price, it may be considered to reduce the decentralization of Bitcoin since some powers are obstructing the decentralized market of Bitcoin, but if we talk about the Bitcoin network activity, still I do not think the decentralization will be affected.

About the price stability,

If the nation decides Bitcoin to be their reserve, then we can see a long-term stability of Bitcoin, but if the country just wanted to play the market, then the price stability will be affected due to buy and sell action of a huge holder especially if they take advantage of the market uptrend, in short, it will make the Bitcoin price highly volatile.


There is a possibility between nation competing to amass Bitcoin, and or if there is a conflict between country and one tried to avoid the sanction by using Bitcoin.  As long as there is greed, the possibility of geopolitical wars is always there, may it be Bitcoin or other things.

We never know. Maybe there have been some purchases from the government that were never disclosed. Privacy is offered to everyone in bitcoin even for the governments. Even if transactions are public in the blockchain we still don’t know whose transactions those are. Some of them might have been studying bitcoin already by buying them and learning about the market’s movement. One thing for sure is that many countries will start buying soon and El Salvador has been the first to do this.

Before governments, there are people with lots of Bitcoins and there are exchanges with lots of Bitcoins. If governments decide to become the biggest whales, then they'll have a necessity of buying hundreds of thousands Bitcoins from these holders and exchanges. If this happens, then the price of Bitcoin will be significantly high as a result of ridiculous demand from governments. Financially, it's one of the best thing that can happen to Bitcoin but on the other hand, it will ruin Bitcoin to my mind. It will become a store of value instead of solving the e-commerce problems, for which it was created, to act as a P2P payment method.

Of course, the more Bitcoin is in the hands of governments, it will affect decentralization in one way or another, although we support governments owning Bitcoin as a reserve, but at the same time we hope that this will not affect Bitcoin's decentralization.

The United States, led by Trump, announced that it will seek to make all Bitcoin mining American, so of course there may be competition from other countries, especially Russia, and we may witness geopolitical Bitcoin wars.

I don't have much knowledge about that aspect but I don't think that there's anything wrong when countries decide to move into crypto mining. I believe that's going to be helpful for the community as more and more countries try their best to be on top when it comes to mining and that way Bitcoin mining difficulty increase and that can somehow help Bitcoin to gain value. However, for those miners who mine on their own equipment might face some problems as their miners won't be able to compete with countries. Surely, such approach is against decentralization but no one can do anything.

The impact that it's going to have on Bitcoin is that price will spike and sooner we will reach $200k. It might not also be the case but I am guessing that when the government of different countries have acquired a lump sum of Bitcoin and use it for their federal reserve it's certain that price will get to a very high price peak sooner than we expect. If maybe price was to reach $200k in the next bull season, it might not take that long again for price to reach there.

This is quite possible, companies can't be as big as nations, or at least companies within a nation cant be as big as the nation itself (usually). Sure Apple is huge, Tesla is huge, Nvidia is huge, Amazon is huge, but all of them combined can't even be just debt of USA let alone the size lol.

So this can be applied to almost every nation as far as I know, and that means every nation will have governments as the biggest holders. Sure some companies will own more than governments because they were early, like having more than microstrategy would be tough, they were early and they got a ton of it quickly, so some nations won't have more than that, but it is still quite obvious that it is going to be benefiting these governments to hold as much as possible.