Asset manager and investor Anthony Pompliano recently declared that a "global Bit arms race" between sovereign nations and governments has officially begun.
In a conversation with Yahoo Finance, Pompliano emphasized that the market expects President-elect Donald Trump to fulfill his campaign promise to establish a strategic Bit reserve fund. According to him, this decision will serve the national interest, helping the United States not to be "left behind" in the global competition for this asset.
"We are now witnessing a global race for Bit. Whether you are a local, state, or federal official, it is important to find a way to add as much Bit to your balance sheet as possible. This is completely different from gold, as Bit cannot be mined further from the ground."
Pompliano explained that the race to adopt Bit is primarily driven by the issue of inflation and the depreciation of domestic currencies. He pointed out that over the past five years, the purchasing power of US residents has decreased by about 25%.
Pompliano noted that countries like Bhutan and El Salvador have accumulated Bit and are taking advantage of being smaller countries with less financial depreciation risk compared to superpowers like the United States. However, he believes that the risk for the United States in investing in Bit is still relatively low, despite the country's dominant economic position.
"National debt has increased by an additional $850 billion in just the past 90 days. If we decide to convert this money into Bit, it would be equivalent to about half of the current Bit market capitalization. We are talking about an investment of $50 to $100 billion - an amount that is insignificant compared to the government's total spending. And I believe the rewards from this move will be fully commensurate with the level of risk."
This model is not only being adopted by countries, but is also beginning to emerge within the United States. Jimmy Patronis, the Chief Financial Officer of Florida, has pushed for the allocation of a portion of the state's pension fund investment portfolio to Bit.
Recently, in November 2024, Pennsylvania state lawmakers also introduced a bill on strategic Bit reserves. If passed, this bill would allow the Pennsylvania State Treasury to maintain 10% of its assets in the form of Bit.
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Annie
According to Cointelegraph
