US President Donald Trump’s proposal to create a cryptocurrency strategic reserve has sparked a huge backlash, with financial expert and investor Anthony Pompliano describing the idea as “crazy.”
Speaking at Varney & Co, the founder and CEO of Professional Capital Management expressed skepticism about the inclusion of multiple cryptocurrencies in the proposed reserve.
The plan, which reportedly involves holding five or six different digital assets, has drawn comparisons to a hedge fund. Pompliano questioned how the government would determine the allocation of assets within the reserve, particularly how it would balance assets like Bitcoin and Solana:
“How do you decide if you want more Solana and less Bitcoin? How do you do that? We don’t know all the details yet, but from what we know right now, it’s crazy.”
Pompliano noted that Trump’s initial campaign discussions revolved around a Bitcoin-only strategic reserve, emphasizing BTC’s limited supply and status as a global store of value. However, recent reports suggest that the reserve could include multiple U.S.-based cryptocurrencies rebranded as an “America first” crypto initiative.
“Bitcoin is strategic because it has a limited supply, is backed by the most powerful computing network, and is completely decentralized,” Pompliano explained. “If we’re adding random altcoins to the reserve, why not Tesla, GameStop, or hedge fund interests? That approach just turns it into speculation.”
Bitcoin reserves have become a growing trend among some countries, including El Salvador, Bhutan, Russia, and the UAE. The Abu Dhabi Sovereign Wealth Fund has also reportedly started buying Bitcoin. Pompliano noted that these countries view Bitcoin similarly to gold and hold it as a strategic asset.
“Countries are treating Bitcoin like gold and stockpiling it on their balance sheets. That’s the strategic value,” he said.
Pompliano suggested that Trump’s inclusion of multiple cryptocurrencies could be a negotiating tactic. He suggested that the initial plan could be a starting point that would eventually result in a Bitcoin-only reserve, referencing the president’s well-known bargaining style.
“If you think about The Art of the Deal, maybe he wants five or six assets but he’s only willing to negotiate down to Bitcoin,” he suggested, adding: “I don’t know if that’s what he’s doing, but I hope so.”
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/crypto-friendly-millionaire-anthony-pompliano-calls-us-altcoin-reserve-insanity-explains-why-its-not-viable/