Discussions about the U.S. establishing a Bitcoin [BTC] reserve gained attention after Donald Trump won the election.
Despite Trump's commitment to holding all existing and future government-acquired Bitcoins, the pressing question remains: Will the U.S. actively purchase more Bitcoins to build a larger reserve?
Anthony Pompliano, founder and CEO of Professional Capital Management, shared his views on X in a recent post.
Pompliano proposed a bold Bitcoin reserve plan.
Pompliano commented on the recently proposed Bitcoin reserve plan, first introduced by Senator Cynthia Lummis. AMBCrypto reported on her proposal to convert Treasury gold certificates into BTC, laying the foundation for the reserve.
Notably, Dennis Porter, CEO of the Satoshi Act Fund, revealed that the bill she proposed has become the fourth most-watched bill nationwide.
Pompliano also highlighted Robert F. Kennedy Jr.'s plan to purchase Bitcoin daily, which would enable the U.S. to steadily accumulate hundreds of thousands of Bitcoins over time, as well as Trump's plan.
However, the executive believes that while these proposals are promising, they are not sufficient given the growing role of Bitcoin as a global financial asset. Pompliano urged for a more aggressive approach, stating:
"The U.S. should print $250 billion on the first day of Donald Trump's presidency and invest 100% of the proceeds into Bitcoin."
He further explained that purchasing the king of coins at the current price [around $95,000] could yield nearly 2.8 million BTC.
Considering the price surge that such a large-scale purchase could bring, he estimated that the U.S. could buy 1.6 million Bitcoins (BTC) at an average purchase price of $150,000.
According to data from Arkham Intelligence, combined with the existing holding of 208,109 BTC, the U.S. would become the largest holder of BTC globally, with a holding of 1.8 million BTC.
Bitcoin against currency depreciation
Notably, the CEO pointed out the increasing appeal of the largest cryptocurrency to companies like MicroStrategy, which has become one of the best-performing stocks in 2024.
He further elaborated that companies seek Bitcoin because it can prevent the depreciation of the dollar, while its decentralized nature minimizes risk.
Pompliano said:
"If Bitcoin is the ideal asset for individuals and businesses' balance sheets, then it will eventually enter the national balance sheet."
The executive pointed out that there are only 21 million Bitcoins in total, and its inherent scarcity further enhances its appeal. This, in turn, necessitates countries to secure their share before it is too late.
BitMEX co-founder Arthur Hayes also pointed out that the asset's deflationary nature could hedge against inflation and emphasized its long-term value.
Is Bitcoin on the path to seven figures?
As the debate continues, Blockstream CEO Adam Back offered optimistic predictions, stating that
"If a strategic Bitcoin reserve really happens in the U.S., then this cycle needs to be ready for seven-figure Bitcoin."
Although the possibility of the U.S. establishing a Bitcoin reserve remains uncertain, its implementation could have profound effects on the cryptocurrency market and the country's financial strategy.
