- Anthony Pompliano proposes a plan for Bitcoin reserve.
- Blockstream CEO believes a reserve would trigger more highs for BTC.
As a seasoned analyst with over two decades of experience in the finance industry, I find Anthony Pompliano’s bold proposal for a Bitcoin reserve intriguing and potentially game-changing. His extensive understanding of the financial markets and his keen eye for emerging trends make him uniquely qualified to voice such opinions.
Following Donald Trump’s victory in the elections, talks about the U.S. setting up a reserve for Bitcoin (BTC) have become more commonplace.
Although Trump has pledged to retain any Bitcoins acquired by the government now and in the future, there’s still uncertainty about whether the U.S. will buy more to expand its holdings.
In a recent post on platform X, Anthony Pompliano, the head honcho of Professional Capital Management, expressed his views.
Pompliano’s bold Bitcoin reserve proposal
Pompliano expressed his thoughts on the recent Bitcoin reserve suggestions, commencing with Senator Cynthia Lummis’ proposal. As reported by AMBCrypto, her plan involves transforming the Treasury’s gold certificates into Bitcoin, thereby establishing a reserve basis for it.
It’s worth mentioning that Dennis Porter, the CEO of Satoshi Act Fund, shared that his bill was the fourth most popular bill viewed across the country.
Additionally, Pompliano emphasized a suggested strategy by Robert F. Kennedy Jr., which involves regular Bitcoin acquisitions to enable the United States to gradually amass tens of thousands of Bitcoins over an extended period, as well as Trump’s similar plan.
Nevertheless, the executive contends that these suggestions, despite their appeal, are not enough considering Bitcoin’s increasing significance as a worldwide financial asset. Pompliano advocates for a bolder strategy, suggesting:
On the inauguration day of Donald Trump’s presidency, it would be beneficial for the U.S. to mint or digitally create $250 billion and invest all the earnings directly into Bitcoin.
He further explained that using $250 billion to buy the king coin at current prices [~$95,000] could secure nearly 2.8 million BTC.
Considering possible price rises from bulk buying, he approximated that the U.S. might buy approximately 1.6 million Bitcoins at an average cost of about $150,000 per coin.
With the current 208,109 Bitcoin already in its possession, as reported by Arkham Intelligence, adding this amount would make the United States the world’s leading Bitcoin holder, owning approximately 1.8 million Bitcoins in total.
Bitcoin against currency debasement
Specifically, the CEO highlighted the growing popularity of the leading cryptocurrency among companies like MicroStrategy, a significant player in the stock market this year.
He elaborated that companies seek Bitcoin for its ability to protect against dollar debasement while presenting minimal risks due to its decentralized nature.
Pompliano said:
As more individuals and businesses consider Bitcoin as a valuable asset for their financial portfolios, it’s likely that nations themselves may also incorporate Bitcoin into their national assets over time.
The executive pointed out that since there will only be 21 million Bitcoins created, its built-in rarity significantly increases its attractiveness. Consequently, it’s crucial for nations to claim their portion before the opportunity slips away.
Arthur Hayes, one of the co-founders of BitMEX, additionally highlighted Bitcoin’s inherent deflationary characteristic as a protective measure against inflation, underscoring its enduring worth over time.
Bitcoin’s path to seven figures?
As the discussion persists, Adam Back, the head of Blockstream, has voiced his positive outlook, stating confidently.
“If the U.S. Strategic Bitcoin Reserve happens, prepare for seven figure Bitcoin this cycle.”
While it’s not yet clear if the U.S. will establish a Bitcoin reserve, such an action might significantly impact the crypto market and the country’s financial planning strategies.
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2024-11-21 10:16