VanEck Advisor: The logic behind the Federal Reserve buying Bitcoin instead of government bonds is based on the fixed total supply of Bitcoin
ChainCatcher news, Tether strategy, and VanEck advisor Gabor Gurbacs stated that the logic behind the Federal Reserve purchasing Bitcoin instead of U.S. Treasury bonds is based on the fundamental differences between the two assets: one can be printed infinitely, while the other cannot. This is essentially a hard asset acquisition strategy, similar to central banks' operations with gold. The Federal Reserve aims to diversify its asset holdings by shifting from easily printed Treasury bonds to Bitcoin, which has a fixed supply, thereby hedging against potential inflation and currency fluctuations. In fact, this is a hedge against itself, which most central banks currently achieve primarily by holding gold. Bitcoin is increasingly being incorporated into the hedge portfolios of central bank investments.
