To investors,

The conversation around the United States bitcoin strategic reserve is heating up. 

Senator Cynthia Lummis has put forward a proposal to put the reserve into action. Donald Trump previously committed to starting the reserve with the ~ 200,000 bitcoin that the United States already owns. And RFK Jr has proposed a new plan to start buying bitcoin every day that would allow the United States to accumulate hundreds of thousands of bitcoin over time.

None of these proposals go far enough though. 

The United States should print $250 billion on the first day of Donald Trump’s presidency and put 100% of the proceeds into bitcoin. 

That may sound bombastic, but I am dead serious. Let me explain. 

Bitcoin is becoming the preferred balance sheet asset for various corporations, including Microstrategy which is one of the best performing stocks in 2024. Companies want bitcoin on their balance sheet because it protects them from the debasement of the dollar, while also having minimal risk due to the decentralized structure. 

Additionally, there will only be 21 million bitcoin ever created, so the scarcity of the asset will likely lead to price appreciation in the future. 

If bitcoin is a desired balance sheet asset for individuals and corporations, then it will eventually find its way to nation state balance sheets too. Given that there are only 21 million, it is imperative that countries act quickly to purchase their share of the coins before someone else buys them. 

This brings me to how much the United States should buy. 

$250 billion may sound like a big number, but the US government increased the national debt by $850 billion in the last 90 days so $250 billion is a small number when talking about government finance. 

That $250 billion could purchase just under 2.8 million bitcoin at the current ~ $90,000 price. 

If the US started to purchase bitcoin, the price of the asset will obviously increase though. So let’s say the average purchase price of the US bitcoin is $150,000. That means we could buy 1.6 million bitcoin with our newly printed $250 billion. 

Add in the 200,000 bitcoin we hold and the US would immediately be the largest bitcoin holder in the world with 1.8 million bitcoin. 

This is the type of action that would cost us very little financially, but could have a profound impact on our financial health in the future. 

Bitcoin is a technology product built to protect against currency debasement. The US is currently suffering from that problem. Bitcoin should be our solution. 

Print $250 billion on day one. Purchase bitcoin immediately. Protect the future for our children. 

Hope you all have a great day. I’ll talk to everyone tomorrow.

-Anthony Pompliano

Founder & CEO, Professional Capital Management

Anthony Pompliano on Bloomberg Discussing Bitcoin Yesterday

Anthony Pompliano joins Bloomberg to talk bitcoin, why higher price means less risk, regulation, Trump administration, and future outlook.

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