Yesterday Donald Trump, President of America, said that they are creating a crypto reserve in their country mainly Bitcoin, Ethereum, Solona, ADA and XRP. Now after this news the crypto market has seen the upward movement, because whoever is in the market knows its a big deal and we can see a buy pressure in whole crypto market.
PC: Pixabay.com
Now the question is whether government buying the crypto is good or bad. We wanted to get away from the Fiat market because it is controlled by the government only. They can print as much as they want. But with the crypto it's not possible for most of currency. Now if the government is buying and keeping it as a reserve, they can manipulate the market which actually is bad.
If they are constantly buying and keeping it for good use then it's good but if they are buying and manipulate it for their advantage then it's actually bad. People buying bitcoin because they think that it is that asset which can beat the inflation. Now if the government owns most of the Bitcoin and they manipulate it to such an extent that people have to fakl back to fiat then again it's a lost cause. I know we can have 1000s of cryptos but again you never know where the government will start putting their nose in.
Now I might be thinking ahead and I am trying to see the negative impact of the Crypto Reserve. But we have to see both the aspects and see does it actually help us to have the crypto or not. If the cryto is going to get like the Fiat then why to even hold it. But we are safe for some time and see how it goes. Until then enjoy the bull run and hopefully this tike people can actually take the profit and make good use of it.
