Even in this scenario, the case for government crypto purchases is not ironclad. One caveat is that the government might buy so much crypto that it becomes a major force in setting its price. Crypto-holding voters could then push the government to boost or maintain their portfolio values, much as homeowners often support zoning regulations or the mortgage deduction. Crypto markets would become politicized.

There is also the worry that too tight a government embrace might make crypto innovators hesitant and too conservative. It is not always good for innovation to have government as a major customer. That’s a reason to might hope that any public-sector investment in Bitcoin is modest.

No matter what, however, the separation of government and crypto will eventually come to an end. My only suggestion is that any change be made slowly, modestly and as far removed from politics as possible.