CDS Crypto News Strategic Bitcoin Reserve: Why Governments Are Scrambling for Digital Assets?
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Strategic Bitcoin Reserve: Why Governments Are Scrambling for Digital Assets?

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Strategic Bitcoin Reserve Why Governments Are Scrambling For Digital Assets

Anthony Pompliano Urges U.S. to Build Strategic Bitcoin Reserve Under Trump

Anthony Pompliano Urges U.s. To Build Strategic Bitcoin Reserve Under Trump

Anthony Pompliano, an investor and asset manager, has said that governments and sovereign states are already engaged in a worldwide Bitcoin weapons race. During an appearance on Yahoo Finance, Pompliano made the case that market participants think President-elect Trump will fulfill his campaign pledges and create a strategic reserve of Bitcoin and that doing so would benefit the US and keep it from being front-run by other nations.

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

U.S. Purchasing Power Drops 25%: Bitcoin Seen as a Hedge

U.s. Purchasing Power Drops 25%: Bitcoin Seen As A Hedge

According to the pro-Bitcoin asset manager, currency devaluation is the main factor driving the rush to embrace Bitcoin. Over the past five years, US citizens have lost almost 25% of their purchasing power. Bhutan and El Salvador, who are also amassing Bitcoin, have the advantage of being smaller players with fewer negative risks than major players like the United States, Pompliano said in the interview. The downside risk for US investors in Bitcoin is still minimal, though, even with the extra danger of becoming a worldwide economic powerhouse.

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.

Pompliano

Domestically, a similar trend of using Bitcoin as a strategic reserve asset is also evident. Chief Financial Officer Jimmy Patronis of Florida is advocating for the state pension fund to invest in Bitcoin to a certain extent.

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Strategic Bitcoin Reserve: Why Governments Are Scrambling For Digital Assets?
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lectertodd

Lectertodd is 27 years old. She graduated from Çankaya University, Department of Psychology, in 2021. She actively works as a writer, translator, and editor for various websites. Moreover, she loves reading, researching, and learning new things.

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