A pro-crypto U.S. President and global turmoil drives Bitcoin interest, as Anthony Pompliano highlights a global race over the asset.
Anthony Pompliano, an investor and asset manager, has said that governments and sovereign states are already engaged in a global race over Bitcoin.
In a Yahoo Finance appearance, Pompliano made the case that market players think President-elect Trump will fulfill his campaign pledges and create a strategic reserve of Bitcoin, and that doing so would benefit the US and avoid it from becoming “Front-run by other countries.” Pompliano claimed:
“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.”
According to the pro-Bitcoin asset manager, currency devaluation is the main factor driving the rush to embrace Bitcoin. Over the past five years, US citizens have lost almost 25% of their purchasing power.
Both Domestic As Well As Global race is Ongoing
Bhutan and El Salvador, who are also amassing Bitcoin, have the advantage of being smaller players with fewer negative risks than major players like the United States, Pompliano said in the interview.
The downside risk for US investors in Bitcoin is still minimal, though, even with the extra danger of becoming a worldwide economic powerhouse. Pompliano contended:
“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.”
Domestically, Bitcoin adoption as a strategic reserve asset is following the same trajectory.
Florida’s top financial officer, Jimmy Patronis, is advocating for the state pension fund to invest a portion of its assets in Bitcoin.
Legislators from Pennsylvania most recently introduced a Bitcoin strategic reserve measure in November 2024.
The Pennsylvania State Treasury would be able to keep 10% of its assets in the supply-capped digital currency if the law is approved.