YEREVAN (CoinChapter.com) — Anthony Pompliano, an asset manager and investor, highlighted the increasing competition for Bitcoin adoption among sovereign nations. Speaking on Yahoo Finance, he explained that governments are now racing to secure Bitcoin strategic reserves. He urged officials at all levels of government to consider adding Bitcoin to their balance sheets, stating:
“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.”
Anthony Pompliano on Bitcoin Race. Source: Bitcoin Archive
Pompliano emphasized that Bitcoin’s finite supply of 21 million sets it apart from traditional assets like gold, which can be mined indefinitely. This scarcity drives the competition for Bitcoin accumulation among countries.
Pompliano: United States Should Consider Strategic Bitcoin Reserve
Pompliano discussed how the United States could benefit from a Bitcoin strategic reserve. He referenced market expectations that President-elect Donald Trump might prioritize such a reserve to keep pace with other nations. He stated that failing to act could leave the United States vulnerable to being “front-run by other countries.”
The urgency comes amid rising national debt and declining currency value. Over the last five years, U.S. residents have reportedly lost 25% of their purchasing power. In the past 90 days alone, the national debt increased by $850 billion.
Pompliano noted that an allocation of $50–$100 billion to Bitcoin would represent a small fraction of federal spending but could have significant financial implications. He explained:
“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.”
States Take Initiative in Bitcoin Adoption
While federal initiatives are still uncertain, some U.S. states are actively pursuing Bitcoin adoption. Florida’s Chief Financial Officer, Jimmy Patronis, has advocated for the state pension fund to include Bitcoin in its portfolio.
Jimmy Patronis Advocates for Florida’s Cryptocurrency Strategy. Source: Jimmy Patronis on X
Similarly, Pennsylvania lawmakers introduced a Bitcoin strategic reserve bill in November 2024. If passed, the bill would allow the Pennsylvania State Treasury to allocate 10% of its assets to Bitcoin. These developments show increasing interest in Bitcoin at the state level as an asset to hedge against financial instability.
Smaller Nations Lead Bitcoin Accumulation
Pompliano also pointed out that smaller nations like Bhutan and El Salvador are ahead in the Bitcoin race. These countries face fewer economic risks compared to larger global powers, enabling them to adopt Bitcoin more quickly. Bhutan has quietly incorporated Bitcoin mining into its economic strategy, while El Salvador has made Bitcoin legal tender.
Despite being an economic leader, the United States has relatively low downside risks for Bitcoin adoption. Pompliano highlighted how rising debt and ongoing currency devaluation make Bitcoin an increasingly attractive option for both small nations and global powers.
Currency Devaluation Drives Global Bitcoin Race
The declining purchasing power of the U.S. dollar underscores the urgency of the Bitcoin race. Data from economist Jeffrey A. Tucker shows a sharp decline in the dollar’s value since 2020. This trend is pushing both nations and states to accumulate Bitcoin as a hedge against devaluation.
Decline in U.S. Dollar Purchasing Power (2020-2024). Source: Jeffrey A. Tucker
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