White House crypto czar David Sacks has criticized the US government’s sale of confiscated Bitcoin over the years, referring to it as a strategic mistake that has cost taxpayers billions.
In a March 6 social media post, Sacks said the US government generated $366 million in proceeds from its Bitcoin (BTC) sales over the past decade.
“If the government had held the bitcoin, it would be worth over $17 billion today,” said Sacks. “That’s how much it cost American taxpayers not having a long-term strategy.”
Source: David Sacks
The folly of treating Bitcoin as a short-term trade was highlighted by Joe Burnett, the head of market research at Unchained.
“Long-term holders shape the market,” Burnett told Cointelegraph in a written statement. “Bitcoin isn’t about timing the market. It’s about time in the market. In short, Bitcoin’s price will swing, but its true value is built for generations.”
In January, the Department of Justice received the green light to sell the 198,000 BTC it seized from Silk Road, the darknet marketplace that was shuttered in 2013. The decision was widely panned by the crypto community for being short-sighted and not carefully weighing Bitcoin’s long-term wealth effect.
However, the US government continues to hold the confiscated Bitcoin. The status of the stockpile has been subject to debate since Donald Trump secured the US presidency in November.
Trump has vowed to make America the world’s leader in crypto and blockchain technology, which includes adopting a strategic crypto reserve with a special status for Bitcoin.
Related: President Trump says crypto reserve to include BTC, ETH, SOL, XRP, ADA
Sacks’ timing is no coincidence
Sacks delivered his message on the eve of the White House’s first crypto summit, where more than 20 industry leaders have been invited to discuss America’s evolving cryptocurrency priorities.
The confirmed attendees include Ripple CEO Brad Garlinghouse, Strategy founder Michael Saylor, and Gemini founders Cameron and Tyler Winklevoss.
According to Sacks, the White House chose to keep the attendee list small to facilitate a “meaningful conversation” around digital asset policies and strategies.
Source: Paolo Ardoino
There is growing speculation that the White House will unveil plans for a strategic Bitcoin reserve during the March 7 summit. Unconfirmed reports also suggest the president is considering lowering or eliminating capital gains taxes on Bitcoin and crypto holdings.
However, until now, the clearest indication given by Sacks is that industry representatives will meet with President Trump’s Working Group on Digital Assets.
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