"Pomp" Says the US Should Immediately Print $250 Billion and Buy Bitcoin
Is it so crazy?
We are living in extraordinary times.
If you’re a Bitcoiner, then you know what I mean.
$94,000 per coin. Unprecedented.
And the United States government, at least the incoming regime, is pro-Bitcoin. A bill in the United States Senate is advocating for the purchase of 1 million Bitcoins, over five years, as a “strategic Bitcoin reserve.” Wild.
(See last week’s newsletter.)
And now, Anthony Pompliano, a long-time Bitcoin proponent and podcast host, is saying that the US should step it up. “Pomp” has 1.6 million followers on X, formerly Twitter, so he’s no joke. And his reasoning is pretty sound. Here’s a smattering of his proposal:
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.
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.
$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.
Here’s a bit of the response to Pomp’s proposal, from X:
“Great reasoning. Honestly it still sounds so far fetched but the reasoning is sound and could be the fastest way to deal with the US debt issue. What is happening around Bitcoin right now is astounding. What a fantastic time to be in the industry.” - Gareth Jenkinson.
“Imagine the US securing its future with Bitcoin—kind of like buying digital gold while it's still on sale. Time to think big, right?” -
NOTE: The United States already owns 200,000 Bitcoins, from its seizure of the Silkroad stash, so it’s a great start on a strategic reserve. Just don’t sell it, is what many Bitcoiners are saying. And then go even further.
With a national debt of $36 trillion, what does the US have to lose?
Pomp’s suggestion doesn’t seem so crazy after all. When you think about it.
Thanks for reading.
Check out my latest book, House of Cards: The Rise and Spectacular Collapse of the FTX Crypto Empire, available on Amazon.com.
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Medium - Check out my writings on Medium, including articles not featured in the newsletter. Join my over 700 other followers who read and write about crypto. medium.com/@rickmulvey
Podcasts - To hear the top names in Bitcoin, and learn more than you could imagine, check out The Pomp Podcast with Anthony Pompliano, What Bitcoin Did with Peter McCormack, and The Wolf of All Streets Podcast with Scott Melker.
Issue No. 141, November 20, 2024
Rick Mulvey is a CPA, crypto consultant, and frequent contributor to Bitcoin Magazine. He writes about all things Bitcoin, and yells at the Yankees and Giants. He also runs marathons and makes wine, neither professionally.