Global Bitcoin Race Among Nations Intensifies, Says Anthony Pompliano

According to Cointelegraph, asset manager and investor Anthony Pompliano has highlighted the onset of a global Bitcoin arms race among sovereign nations and governments. In a recent interview with Yahoo Finance, Pompliano emphasized that market participants anticipate President-elect Trump will fulfill his campaign promises by establishing a strategic Bitcoin reserve. He argued that such a move would be in the United States' best interest to avoid being outpaced by other countries. Pompliano stated, "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. This is not like gold where we can just go dig up more of it out of the ground." Pompliano explained that the drive to adopt Bitcoin is largely fueled by currency devaluation, noting that U.S. residents have lost approximately 25% of their purchasing power over the past five years. He pointed out that smaller nations like Bhutan and El Salvador are accumulating Bitcoin, benefiting from fewer downside risks compared to global powers such as the United States. Despite the potential risks associated with being a global economic leader, Pompliano believes the downside risk for the U.S. investing in Bitcoin is relatively low. He remarked, "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. And I think that it is well worth the risk-reward." Domestically, the trend of adopting Bitcoin as a strategic reserve asset is also gaining momentum. Florida's chief financial officer, Jimmy Patronis, is advocating for the state pension fund to allocate a portion of its portfolio to Bitcoin. Additionally, in November 2024, Pennsylvania lawmakers introduced a bill proposing the establishment of a Bitcoin strategic reserve. If enacted, this legislation would permit the Pennsylvania State Treasury to hold 10% of its assets in the supply-capped digital currency. This growing interest in Bitcoin among states and nations underscores the increasing recognition of its potential as a strategic financial asset.