Is the U.S. about to add Bitcoin to its reserves? Pompliano thinks so.
With inflation weakening the dollar, more companies are turning to Bitcoin as a long-term store of value. Experts say that the U.S. government could be next.
Here’s everything you should know.
Dollars or Bitcoin: What’s the Better Bet?
Entrepreneur and investor Anthony Pompliano is challenging big companies to rethink how they handle their money. In a recent interview with CNBC, he said that companies are losing value by holding too much cash, especially as the U.S. dollar keeps getting weaker.
The dollar has lost about 30% of its buying power in the last five years. So, he asked a tough question: If you’re a business leader, would you rather hold dollars for the next 10 years or Bitcoin?
Putting it simply, he is trying to point out that holding fiat is risky, while Bitcoin offers long-term protection and upside potential.
Bitcoin Remains the Top Choice
Pompliano believes Bitcoin is still far ahead of the rest of the crypto market. He said that holding Bitcoin on a balance sheet may seem unconventional now, but soon it will become the norm.
He recently launched a company called ProCap BTC, which already holds nearly 5,000 Bitcoins valued at over $500 million.
When asked about Ethereum and other rising cryptocurrencies, he made it clear that most of Wall Street’s attention is on Bitcoin, and not Ethereum, Solana, or any other altcoins.
“Bitcoin has established itself as the king of the market. I don’t think that’s going to change anytime soon.”
As for stablecoins, Pompliano said they could grow in usage but won’t gain in price, since they are pegged to the dollar.
Will the U.S. Government Start Buying Bitcoin?
Pompliano made a bold prediction: the U.S. government will eventually start buying Bitcoin. When asked what could push Bitcoin even higher, he said this would be the biggest catalyst of all. A formal move, such as creating a Strategic Bitcoin Reserve, would be a massive shift. He also believes more Wall Street firms that have hesitated so far will soon follow.
This prediction may not be far off!
Patrick Witt, a senior White House official for digital assets, recently confirmed that the U.S. government is officially moving forward with its Strategic Bitcoin Reserve. Speaking at the Bitcoin Policy Summit, Witt said a formal report is on the way and that the administration has already started laying the groundwork for a long-term Bitcoin accumulation plan.
U.S. Holdings Still Intact, Despite Rumors
Recently, there were rumors that the U.S. government had sold off 85% of its Bitcoin holdings, sparking panic in both crypto and political circles.
However, blockchain firm Arkham Intelligence clarified that the U.S. still holds around 198,000 BTC, worth $23.5 billion, spread across various government agencies like the FBI, DOJ, and DEA. Importantly, none of the Bitcoins have moved in the past four months.
If the U.S. does announce its entry into Bitcoin, it could mark a historic turning point for the entire crypto market. We’ll be watching!
