Since the victory of Donald Trump in the election, conversations surrounding the establishment of a Bitcoin reserve by the United States have gained momentum.
While Trump has pledged to retain all current and future government-acquired Bitcoin, the essential query remains: Will the U.S. actively acquire more to expand its reserve?
Anthony Pompliano, the creator and chief executive officer of Professional Capital Management, shared his perspective on this topic in the recent X publication.
Pompliano’s Ambitious Bitcoin Reserve Proposition
Pompliano expressed his views on the recent suggestions for a Bitcoin reserve, commencing with Senator Cynthia Lummis’s proposal. CryptoCrypto reported on her initiative to convert the gold certificates of the Treasury into BTC as a foundation for the reserve.
Dennis Porter, the CEO of Satoshi Act Fund, also highlighted that her bill ranked as the fourth most-viewed bill nationwide.
Pompliano further shed light on Robert F. Kennedy Jr.’s strategy for daily Bitcoin procurements to enable the U.S. to steadily amass hundreds of thousands of BTC over time in addition to Trump’s plan.
Nonetheless, he contended that these proposals, although promising, were inadequate considering Bitcoin’s increasing significance as a global financial asset. Pompliano advocated for a more assertive stance, stating:
“The United States should generate $250 billion on the first day of Donald Trump’s presidency and invest 100% of the proceeds in Bitcoin.”
He elaborated that utilizing $250 billion to purchase the primary cryptocurrency at current values [~$95,000] could secure nearly 2.8 million BTC.
Considering potential price surges due to such extensive acquisitions, he estimated that the U.S. might obtain 1.6 million BTC with an average buying price of $150,000.
When combined with the existing holdings of 208,109 BTC, according to Arkham Intelligence, this move would position the U.S. as the foremost BTC holder worldwide, with a total of 1.8 million BTC.
Bitcoin as a Safeguard against Currency Devaluation
Pompliano underscored the growing allure of the leading cryptocurrency among corporations like MicroStrategy, which has emerged as one of the most successful stocks of 2024. He emphasized that companies seek Bitcoin for its capacity to shield against dollar devaluation while presenting minimal risks due to its decentralized nature.
He articulated:
“If Bitcoin becomes a coveted asset for the balance sheets of individuals and corporations, it will eventually find its way onto the balance sheets of nation-states as well.”
With only 21 million BTC set to ever exist, Pompliano noted that its intrinsic scarcity further enhances its appeal, making it imperative for nations to secure their portion before it’s too late.
Arthur Hayes, the co-founder of BitMEX, also acknowledged the asset’s deflationary characteristic as a hedge against inflation, accentuating its enduring value.
Is Bitcoin Poised for Seven-Figure Valuation?
While the discussion persists, Adam Back, the CEO of Blockstream, has emerged with an optimistic forecast, stating:
“If the U.S. Strategic Bitcoin Reserve materializes, brace for a seven-figure Bitcoin during this cycle.”
Although the creation of a U.S. Bitcoin reserve remains uncertain, its execution could have sweeping repercussions for the cryptocurrency market and the financial strategy of the nation.