- Max Keiser warned of the US government’s capability to seize Bitcoin (BTC) assets held by ETFs if push comes to shove.
- The Bitcoin advocate also cautioned about its potential takeover of BTC miners.
- He sees BTC mooning to $500K in an impending US market crash.
Max Keiser’s Warning
By design, Bitcoin is built within a decentralized world space via the blockchain. That means no other entity, even the government, can seize or manipulate it. However, the same cannot be said if they decide to take control of the supply held by a wallet.
This is the concern raised by Bitcoin proponent Max Keiser in response to the potential asset seizure of Donald Trump if he fails to fork out the $355 million penalty hammered down by Manhattan Supreme Court Judge Arthur Engoron in favor of New York Attorney General Letitia James.
“If they can do this to Trump, they can certainly seize Bitcoin held in BTC ETFs and commandeer US BTC miners,” said Keiser’s recent post on X. “Self-custody or lose it.”
As of December 2023, the US government has an estimated haul of 205,515 BTC, which is worth around $10.58 billion based on Sunday’s (February 25, 2024) prevailing rates at $51,500 per BTC. The hoard didn’t come from purchases but through a series of busts.
It just goes on to show that the government could take over a person or a group’s Bitcoin supply or other digital assets if it finds a legal reason to do so. The administration could also confiscate or gain control of Bitcoin mining rigs if they get out of bounds within existing laws.
Although it couldn’t just seize a wallet or vault without just cause or court order, just imagine how such a scenario could play out in the hands of a corrupt or dictatorial regime. This makes Keiser’s caution hold water, albeit its remote possibility that the US government would suddenly decide to do so—unless they are willing to risk getting the ire of cryptocurrency users and supporters as well as powerhouse financial institutions with their products or services anchored on Bitcoin.
Bitcoin to $500,000
In an earlier post, Keiser likewise voiced out his bleak forecast of the US economy that could mirror the 1987 stock market crash. This came as a reaction to The Kobeissi Letter’s data reflecting a concentration of approximately 75% of the entire market in the top 10% stocks, which simulates the same buildup to the financial crises in 1931, 2001, and 2008.
Keiser believes the event could push Bitcoin to $500K while demonetizing gold along the way. He also foresees an outcome where El Salvador could benefit from the fallout of the market collapse.
The numbers are a significant bump up from his previous $200K per BTC estimates. However, no timeframe is mentioned as to when the event will likely occur.