The year 2024 is definitely a good time for the world of cryptocurrencies. Data indicate that this year, governments of individual countries around the world have collected a total of 471,380 BTC, which constitutes 2.6% of the total supply of this cryptocurrency. What is the ranking of countries in terms of bitcoins held?
Governments buying BTC? Yes, but only some
When reading about BTC held by governments, one may get the impression that individual countries are interested in the cryptocurrency and buy it as a reserve. During the ongoing bull market and subsequent ATH reductions, it is easy to believe such a narrative. It is worth adding, however, that currently only some countries “consciously” invest in bitcoin. The largest HODLers on this list are countries that came into possession of BTC due to confiscations related to large scandals, such as Silk Road or PlusToken.
1. USA in the lead
The United States is the clear leader in this category, holding 213,297 BTC worth approximately $14.82 billion. Most of these resources come from law enforcement-related seizures. An example is the closure of Silk Road, one of the largest online black markets, during which 69,000 BTC were seized. It is worth adding here, however, that this year’s BTW summary held by governments is unique. Why? Because the US presidential election was won by Donald Trump, who in his campaign clearly emphasized his sympathy for bitcoin and the cryptocurrency market in general. One of Trump’s demands was to establish the USA as the “Cryptocurrency Capital of the World”. We can therefore assume with a considerable degree of probability that the USA may soon consciously invest in Satoshi Nakamoto’s cryptocurrency.
2. China – second place despite restrictions
In second place is China, which has approximately 190,000 BTC, worth USD 13.2 billion. These resources mostly come from the PlusToken scandal, one of the largest pyramid schemes in the history of cryptocurrencies. Interestingly, this country has a strict policy towards cryptocurrencies, banning their trading and mining, which makes their position even more unique.
3. Great Britain and Europe
The United Kingdom, thanks to activities related to counteracting financial crime, has accumulated 61,000 BTC. Germany, which had 46,359 coins by mid-2024, decided to completely liquidate them, which caused the price of bitcoin on the market to decline by 15.7%.
4. El Salvador – proactive strategy
El Salvador, as the first country in the world to adopt bitcoin as a legal means of payment, took a completely different path. The government is actively purchasing 1 BTC per day, accumulating 5,800 BTC so far. Cryptocurrency has become part of the national financial strategy and a symbol of innovation.
5. Ukraine – donations for war purposes
In the event of an armed conflict with Russia, Ukraine used Bitcoin donations to support its defense. The country received a total of over 1,300 BTC, and its current reserves amount to 186 coins.
The impact of government bitcoin holdings on the market
Governments that own significant amounts of Bitcoin can significantly influence the cryptocurrency market. The example of Germany shows how decisions to liquidate resources can lead to sudden price changes. At the same time, the increase in government BTC resources proves the growing importance of cryptocurrencies in global finance. The growing supply of Bitcoins in the hands of governments is a phenomenon that shows how blockchain technology and cryptocurrencies are transforming modern finance. As more countries recognize the potential of this digital asset, we can expect their involvement in this sector to continue to increase.
Fun fact: Sławomir Mentzen recently announced on the X website that he would like to create a bitcoin reserve in Poland. Interestingly, some time ago a Confederate politician announced that he intended to run for president. You can read more about the news electrifying the Polish cryptocurrency community in the article by editor Jacek Walewski.
You can buy Bitcoin and other cryptocurrencies in a simple and safe way on the zondacrypto exchange.
