Early Bitcoin Investor Concerns

Tuur Demeester, an early Bitcoin investor, has suggested that the U.S. government might take a stake in Bitcoin companies, similar to its involvement with Intel.

A recent report by Adamant Research highlights the ongoing “historic risk” to custodied Bitcoin despite advancements in adoption and regulatory changes in the U.S. The report warns that extreme measures can normalize under pressure, noting that significant Bitcoin holdings in regulated entities face potential confiscation or rehypothecation.

U.S. Stake in Intel

The U.S. government recently confirmed a 10% stake in Intel for nearly $9 billion, enabling the company to expand its U.S. factories.

Risks of an Unsustainable Bubble

The report predicts a bubble in cryptocurrency treasuries, underscoring the importance of caution and awareness when investing in Bitcoin companies, as they introduce additional risks. It recommends thorough due diligence, emphasizing integrity and perseverance over merely being first-to-market, as strategic advantages can dissipate rapidly. Investors are encouraged to consider companies with international operations and to prioritize direct exposure to Bitcoin over merely investing in holding companies.