Following Donald Trump’s presidential victory, talks of the United States establishing a reserve of Bitcoin [BTC] have started to gain momentum.
While Trump has committed to retaining all current and future government-held Bitcoin, the key question remains: Will the U.S. actively acquire more to build up a larger reserve?
Anthony Pompliano, the CEO, and founder of Professional Capital Management, expressed his views on this matter in a recent article.
Pompliano’s Ambitious Bitcoin Reserve Plan
Pompliano discussed the recent suggestions for a Bitcoin reserve, commencing with Senator Cynthia Lummis’s proposal. CryptoCrypto previously reported her idea of converting the Treasury’s gold certificates into BTC, laying the groundwork for a reserve.
Interesting to note is Dennis Porter, CEO of Satoshi Act Fund, disclosing that Lummis’s bill has ranked as the fourth most-viewed bill nationwide.
Pompliano also shed light on Robert F. Kennedy Jr.’s proposal for daily Bitcoin purchases to enable the U.S. to gradually accumulate hundreds of thousands of BTC over time, alongside Trump’s blueprint.
However, Pompliano argued that despite the promise in these proposals, they were insufficient considering Bitcoin’s increasing prominence as a global financial asset. He advocated for a more assertive approach, stating:
“The United States should mint $250 billion on the first day of Donald Trump’s presidency and invest 100% of the proceeds in Bitcoin.”
He further elaborated that deploying $250 billion to purchase the flagship coin at current values [~$95,000] could secure nearly 2.8 million BTC.
By factoring in potential price surges resulting from such extensive acquisitions, he estimated that the U.S. could obtain 1.6 million BTC with an average buying price of $150,000.
When combined with the existing stash of 208,109 BTC, as per Arkham Intelligence, this move would establish the U.S. as the leading BTC holder globally, possessing 1.8 million BTC.
Bitcoin as a Defense Against Currency Devaluation
Pompliano drew attention to Bitcoin’s increasing attractiveness to corporations like MicroStrategy, which has emerged as one of the top-performing stocks in 2024.
He explained that companies turn to Bitcoin for its capacity to shield against currency devaluation, offering minimal risks due to its decentralized nature.
Pompliano remarked:
“If Bitcoin is a coveted asset on balance sheets for individuals and corporations, it will inevitably make its way onto nation-state balance sheets too.”
With only 21 million BTC set to ever exist, he emphasized that its innate scarcity heightens its allure. This underscores the importance for countries to secure their portion before it’s too late.
Arthur Hayes, BitMEX co-founder, also acknowledged the asset’s deflationary characteristics as a hedge against inflation, underscoring its enduring value.
Bitcoin’s Journey to Seven-Figure Territory?
Amid ongoing debates, Adam Back, the CEO of Blockstream, shared his bullish projection, stating,
“If the U.S. Strategic Bitcoin Reserve materializes, brace for Bitcoin reaching seven figures this cycle.”
While the realization of a U.S. Bitcoin reserve remains uncertain, its execution could carry extensive consequences for the cryptocurrency market and the nation’s financial strategy.