As an analyst with over two decades of experience in the financial industry, I have witnessed the evolution of various investment trends and their impact on global economies. The recent statement by Anthony Pompliano about the ongoing Bitcoin arms race between nations and governments caught my attention, primarily because it aligns with my belief that digital currencies are poised to disrupt traditional finance.
According to asset manager and investor Anthony Pompliano, the worldwide competition or struggle over Bitcoin (BTC) between various nations and their governments is now underway.
During an interview on Yahoo Finance, Pompliano expressed the view that many market participants believe President-elect Trump will follow through on his campaign pledges and create a strategic Bitcoin reserve. He suggested this move would safeguard the U.S. from being surpassed by other nations in adopting digital currencies as a strategic asset. In simpler terms, Pompliano argued that having a Bitcoin reserve would help the U.S. avoid falling behind other countries in embracing this new technology.
“There is a global race for Bitcoin going on right now. Whether you are a local, state, or federal government official, you should be figuring out how to get as much Bitcoin onto the balance sheet as possible. This is not like gold where we can just go dig up more of it out of the ground.”
The pro-Bitcoin asset manager explained that the race to adopt Bitcoin is primarily driven by currency devaluation and noted that US residents lost approximately 25% of their purchasing power over the last five years.
The race is on domestically and internationally
In an interview, Pompliano pointed out that countries such as Bhutan and El Salvador are amassing Bitcoin, benefiting from their smaller stature which shields them from the same potential dangers as major economies like the U.S. He also suggested that while there are increased risks associated with being a dominant economic force like the U.S., the potential negative impact of American investment in Bitcoin is still quite minimal according to Pompliano’s perspective.
“The national debt increased by 850 billion dollars in the last 90 days. If we were to try to put that same 850 billion dollars into Bitcoin, that is about half of the current market cap. So, we’re talking about 50-100 billion dollars — small rounding errors when it comes to government spending. And I think that it is well worth the risk-reward.”
As an analyst, I’m observing a similar trend playing out on a domestic level: the strategic adoption of Bitcoin. In my role, I’ve noticed that Florida’s Chief Financial Officer, Jimmy Patronis, is advocating for the state pension fund to diversify its portfolio by including Bitcoin.
In November 2024, legislators from Pennsylvania proposed a bill aimed at creating a Bitcoin strategic reserve. If this bill gets approved, the Pennsylvania State Treasury would be permitted to hold 10% of its resources as a fixed amount of the supply-controlled digital currency, Bitcoin.
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2024-11-16 19:43