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Cryptocurrency News Articles
Anthony Pompliano Explains Why U.S. Needs Bitcoin Reserve
Dec 28, 2024 at 06:02 am
Anthony Pompliano, founder and CEO of Pomp Investments, has emphasized the importance of Bitcoin in a geopolitical context.
Anthony Pompliano, founder and CEO of Pomp Investments, recently discussed the geopolitical significance of Bitcoin (BTC) on Fox Business. He highlighted the need for the United States to consider adding Bitcoin to its strategic reserves, especially in light of other countries already doing so.
Pompliano likened Bitcoin to “digital real estate,” emphasizing its strategic value, comparable to physical assets like Greenland or the Panama Canal. He pointed out that several countries are already mining, buying, and holding BTC, asking, “Are we going to let these other countries be the leader, or are we going to be the leader?”
This statement reflects the increasing trend of nations integrating Bitcoin into their financial and strategic frameworks. Russia and El Salvador stand out in this regard, with Russia recently announcing its Bitcoin mining activities.
“We know Russia recently came out and said, ‘Hey, we’re mining Bitcoin,’ and everyone kind of dismissed it because it’s Russia. But if your enemies are doing it, doesn’t that make more of a case for you to do it?”
Pompliano highlighted the broader shift away from dependence on traditional financial systems, which is evident in light of U.S. sanctions and asset seizures during the Russia-Ukraine conflict. This spurred interest in Bitcoin as a potential “sanctions hedge.”
“Countries now starting to buy Bitcoin not for the price, not for the sovereignty, but actually as a sanctions hedge.”
While nations like El Salvador have adopted Bitcoin as legal tender, critics argue that their smaller scale minimizes global impact. However, Pompliano believes that if the United States, as the world’s largest capital market, were to follow suit, it would set a precedent.
“If America does it, it pretty much reduces all of the career risk and critiques for other countries.”
Pompliano further emphasized Bitcoin’s resilience and its potential role in preserving purchasing power, describing it as “digital gold.” He added, “The big story of 2025 is going to be that crypto has now grown up and is part of the traditional financial system.”
As BTC adoption grows, Pompliano highlighted the need for the U.S. to act decisively. “Buying today is the second best time to buy, because the first best time was yesterday,” he concluded.
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