"If the U.S. government actually established a #Bitcoin reserve and bought 1 million Bitcoin, it might end up buying millions more. Since the U.S. government’s purchase of 1 million Bitcoin would drive the price so high, many HODLers, then worth millions or billions, would finally begin cashing out to spend their windfalls.

That would cause the market to crash, forcing the U.S. government to print even more dollars to buy more Bitcoin to prevent the price from crashing, thereby diminishing the value of its Bitcoin reserve. Of course, a reserve of something you can never sell and must continuously buy is worthless as a reserve. To maintain the pretense that its Bitcoin reserve has actual value, the U.S. government would be forced to keep buying, destroying the value of the dollar in the process.

This would mean Bitcoin prices would keep rising, and the U.S. government would have to print even more money to buy more Bitcoin. Ultimately, so many dollars would be printed to buy Bitcoin that the U.S. would experience hyperinflation, rendering the dollar completely worthless. Once the dollar is worthless, the U.S. could no longer keep buying Bitcoin."

- @PeterSchiff describes hyperbitcoinization #h17n
#Bitcoin