Key Points
- Discussions on the U.S. establishing a Bitcoin reserve have gained traction post-Trump’s election win.
- Anthony Pompliano, CEO of Professional Capital Management, proposes an aggressive approach to acquire more Bitcoin.
The idea of the United States establishing a Bitcoin (BTC) reserve has been a hot topic of discussion following Donald Trump’s election win. While Trump has pledged to retain all existing and future government-acquired Bitcoin, the question of whether the U.S. will actively purchase more to expand this reserve remains.
Pompliano’s Bold Proposal
Anthony Pompliano, the CEO of Professional Capital Management, shared his views on the recent proposals for a Bitcoin reserve in his latest post. His comments came in response to Senator Cynthia Lummis’s proposal to convert the Treasury’s gold certificates into BTC, laying the groundwork for a reserve. Dennis Porter, CEO of Satoshi Act Fund, noted that Lummis’s bill has ranked as the fourth most-viewed bill nationwide.
Pompliano also mentioned Robert F. Kennedy Jr.’s proposed plan for daily Bitcoin purchases to allow the U.S. to steadily accumulate hundreds of thousands of BTC over time, as well as Trump’s plan. However, he argued that these proposals, while promising, were insufficient given Bitcoin’s growing role as a global financial asset. He suggested a more aggressive approach:
“The United States should print $250 billion on the first day of Donald Trump’s presidency and put 100% of the proceeds into Bitcoin.”
He further elaborated that using $250 billion to buy Bitcoin at current prices could secure nearly 2.8 million BTC. Factoring in potential price increases due to such large-scale purchases, he estimated the U.S. could acquire 1.6 million BTC with an average purchase price of $150,000. This would position the U.S. as the largest BTC holder globally, with 1.8 million BTC.
The Appeal of Bitcoin
The CEO also highlighted the rising appeal of Bitcoin for corporations, such as MicroStrategy, which has become one of 2024’s top-performing stocks. He explained that companies seek Bitcoin for its ability to protect against dollar debasement while presenting minimal risks due to its decentralized nature.
“If Bitcoin is a desired balance sheet asset for individuals and corporations, then it will eventually find its way to nation-state balance sheets too.”
With only 21 million BTCs ever to exist, its inherent scarcity further drives its appeal, making it crucial for countries to secure their share before it’s too late. Arthur Hayes, co-founder of BitMEX, also highlighted the asset’s deflationary nature as a hedge against inflation, emphasizing its long-term value.
While the debate continues, Adam Back, CEO of Blockstream, has come forward with his optimistic prediction, stating, “If the U.S. Strategic Bitcoin Reserve happens, prepare for seven figure Bitcoin this cycle.” The possibility of a U.S. Bitcoin reserve remains uncertain, but its implementation could have far-reaching implications for the cryptocurrency market and the nation’s financial strategy.