VanEck Advisor: The logic of the Federal Reserve buying Bitcoin instead of Treasury bonds is based on the fixed total amount of Bitcoin

Tether strategist and VanEck advisor Gabor Gurbacs stated that the logic of the Federal Reserve buying Bitcoin instead of U.S. Treasury bonds is based on the fundamental differences between the two assets: one can be printed indefinitely, while the other cannot. This essentially represents a hard asset acquisition strategy, similar to central banks' operations with gold. The Fed aims to diversify its asset holdings by shifting from freely printable treasury bonds to fixed-supply Bitcoin, thereby hedging against potential inflation and currency fluctuations. In fact, this is a form of self-hedging that most central banks currently achieve mainly through holding gold. Bitcoin is increasingly being included in central bank investment portfolios as part of their hedge mix.