VanEck advisor: The logic of the Federal Reserve buying bitcoin instead of government bonds is based on the fixed total amount of bitcoin, while government bonds can be printed indefinitely

Gabor Gurbacs, advisor to Tether Strategies and VanEck, said on the X platform that the Fed's logic for buying bitcoin over Treasuries is based on the fundamental difference between two assets: one that can be infinitely printed and the other that cannot. This is essentially a hard asset acquisition strategy, similar to what central banks do with gold. By moving away from freely printable Treasuries and toward fixed-supply bitcoin, the Fed aims to diversify its asset holdings and potentially protect against inflation and currency instability. In effect, it is a hedge against itself, and most central banks currently do so primarily by holding gold. Bitcoin is increasingly being included in the hedging portfolios of central bank portfolios.