Bitcoin doesn’t need Presidents, but Presidents need Bitcoin

This installment of The Pomp Letter is free for everyone. I send this email to our investors daily. If you would also like to receive it every morning, join the 190,000 other investors today.

Subscribe now

To investors,

The world of politics has been focused on the infrastructure bill as it has been debated over the last few weeks. The most surprising thing to the incumbent political class has been how quickly and effectively the bitcoin and crypto industry were able to mobilize.

Whether we are talking about phone calls, tweets, or traditional lobbying efforts, it feels like the industry went from 0 to 100 in a matter of days. This was possible because the industry has an incredibly engagement online community that isn’t scared to voice their opinions. Additionally, there has been incredible wealth generated in an industry that went from $0 to about $2 trillion in market cap in a little over a decade.

When you combine wealth and engagement, you have a recipe for action. The surprising thing in my opinion has been the response from the incumbent political class though. There are still a good portion of them, both elected officials and those who generally operate around them, that seem to believe this is an anomaly. They are utterly befuddled by what is happening, yet they seem to think that the crypto industry will move on to something else once this bill is voted on.

As you probably guessed, I tend to think that this conclusion is inaccurate. First, it is very clear that the bitcoin and crypto industry will continue to lead to more innovation, economic production, jobs, and technological progress. This is going to happen regardless of whether the United States wants to participate or not.

Second, it is estimated that approximately half of the Forbes 400 list will come from this industry when bitcoin hits somewhere between $175,000 and $200,000. That is an incredible amount of global wealth that is concentrated in a single industry. Those people, just like the disruptive industries before them, will eventually become larger players in the political arena — they won’t be able to avoid it. The policies and decisions that are made in Washington DC will have an effect on their businesses, their wealth, and their freedom.

Lastly, there is an entire generation of citizens that have grown up with a disdain for the incumbent system. They watched the horrific events of 9/11 get leveraged into two forever wars in the Middle East, while simultaneously expanding the surveillance capabilities of the nation state. Shortly thereafter, the same generation watched as their parents and loved ones were decimated by the global financial crisis. The government bailed out corporations and large financial institutions, but left the average citizen out to dry.

This millennial generation has record low levels of trust in the mainstream media and in the government, but rather than simply complain about these challenges (as previous generations have done), the young people have gone out and built a better system. The media’s power has been significantly weakened by the advent of social media platforms, podcasts, and technology companies like Substack. The legacy financial institutions are on the brink of losing significant power with the advent of bitcoin, stablecoins, and decentralized financial applications.

This is the difference between the generations. This is the difference between the political class and the technology industry. One is focused on building. On action. The other is focused on advocating and complaining. There are politicians who have spent their entire careers complaining about the financial system, yet in less than a decade the technologists were able to simply build a better one.

That framework is important to understand because it is ultimately playing out in nearly every facet of our lives. The doers are making progress at a faster rate than the talkers. When this occurs, the talkers have no tools in their toolbox to compete. They simply attempt to use their words to complain about what the new class of doers have chosen to pursue.

Now this brings me back to the political arena. The folks in Washington DC are being woken up abruptly to this new class of doers. As an example, FTX founder Sam Bankman-Fried was one of the top two donors to Joe Biden’s Presidential campaign last year. Another example is that the relatively unknown and outsider industry has been able to effectively stop all progress on a $500+ billion infrastructure bill as the nation’s elected leaders debate the specific words used in less than 3 or 4 paragraphs.

This type of activity and results led me to tweet the following yesterday:

Before long, someone tagged Twitter and Square CEO Jack Dorsey with the insinuation that maybe one day he would run for President. While most people already would have thought that to be unlikely, Jack’s response was perfect:

This got me thinking. Not only is Jack correct, but the initial framing of the conversation completely missed the mark. Bitcoin doesn’t need anything. It simply is what it is. But maybe the rest of the world needs bitcoin? My response to Jack was an attempt to put clarity around this idea:

Read that again — Bitcoin doesn’t need Presidents, but Presidents need Bitcoin.

As I’ve thought about this framing more and had the opportunity to sleep on it, I feel that it really codifies an important idea. The legacy system is headed in the wrong direction. It may be able to survive for a few more decades, but it won’t last forever. At some point, the incumbent players will need bitcoin more than bitcoin needs the incumbents. Many, myself included, would argue that we are already at this point. But even if you disagree on the current situation, it would be hard to argue that we aren’t headed in that direction in the future.

With that said, my thought related to a bitcoiner becoming President does not necessarily mean that a pseudonymous account with laser eyes on Twitter will successfully run for the highest office in the land. It is more likely that a sitting President, or an existing politician that will eventually run and win, becomes a bitcoiner. I don’t think the current administration is going to be the group that picks up the flag and runs with it.

But I do think that someone like Miami mayor Francis Suarez could be a great example. He is an existing politician who understands how to navigate the often confusing and complex landscape of democratic rule. He has an important and unique view on the importance of technology and freedom, including how those two things can reinforce each other. And Suarez has shown the propensity for action by openly and publicly talking about bitcoin, building Miami into the bitcoin city, and finding ways to embrace the technology to build a better world for his citizens.

Francis Suarez may or may not run for President one day. He is just one example. You could also look at other Bitcoin proponents in political office such as Senator Lummis or Congressman Davidson. Maybe they run for President. Maybe not. But someone, at some point, will run for President of the United States and embrace bitcoin. The industry is growing too fast and the adoption is proving to drive such a pervasive uptake in populations that it feels inevitable.

The crazy thing about this scenario is not that the sitting President of the United States will be a bitcoiner. That would imply that the man or woman in that position would be a savior or leader of the bitcoin movement. Instead, it is more likely that the President of the United States will be in a position where it is essential for the country to embrace the technology. The President will need bitcoin more than bitcoin needs the President.

Now before you roll your eyes and think I’m crazy, there is precedent for this already. The President of El Salvador is a bitcoiner. He has laser eyes on Twitter, has introduced legislation to make the digital currency legal tender in his country, and is working to bring bitcoin mining and other activities to his people. There are many other politicians, both in the United States and abroad, who are self-identifying bitcoiners (laser eyes and everything!). And of course, there are sitting Senators and Congressmen in the United States who have invested material portions of their net worth in the asset.

As an investor, I always try to think about the macro trends and where the world is going. It feels like this past week was an inflection point in the adoption and awareness of bitcoin. There were Senators openly advocating and explaining what bitcoiners have spent years stating on various social media platforms:

We still have a lot of work to do, but this feels like an important milestone. Washington DC has finally come to realize how important this technology is, how engaged the community is, and many of the current politicians are coming to terms with the idea that history will be unkind to those that oppose technological progress.

As you all know, I hate politics. I’ve written more about politics in the last two weeks, than every other time combined since I started this letter in 2018. I’m looking forward to getting past this debacle and getting back to what I enjoy — analyzing the progress of the digital currency, the economic and social ramifications, and the promise of ushering in a better life for billions of people globally.

That brings me to my final point — don’t overlook the fact that bitcoin’s price has been appreciating rapidly over the last few days, while the politicians debated words on a piece of paper. True bitcoiners know that the words don’t mean anything. There is a decentralized system that no one controls. The United States can choose to be friend or foe, but it won’t ultimately matter. The bitcoin network will continue producing block after block after block of transactions. That is exactly how it should be.

Hope each of you has a great start to your week. Talk to everyone tomorrow.

-Pomp

BONUS: We are running our 6th cohort for the Bitcoin and Crypto Training Course starting Tuesday August 10th. Graduates have already been hired at Coinbase, BlockFi, Gemini, Kraken, and many other great companies. Want to increase chances of being hired? Apply here:

https://pompscryptocourse.com

THE RUNDOWN:

2 Senators Propose Exemptions to Crypto Tax Reporting Required by US Infrastructure Bill: U.S. Senators Mark Warner (D-Va.) and Kyrsten Sinema (D-Ariz.) on Saturday updated their amendment modifying a crypto tax reporting provision in the Senate’s landmark infrastructure bill. The original amendment, introduced late Thursday, would exclude cryptocurrency miners who are involved in validating transactions on distributed ledgers and companies that are selling private key hardware or software wallets. Read more.

Washington Wakes Up to Crypto Influence Amid Infrastructure Fight: An intense infrastructure bill brawl between Bitcoin advocates, Congress and the White House has revealed a new power player in Washington that’s starting to find its footing: the cryptocurrency lobby. The industry was first caught off guard when lawmakers and the Biden administration targeted it with new tax rules tucked into the bipartisan Senate infrastructure bill announced last month. But it fought back with a vengeance, showing that startup digital trading platforms and other firms could rally a small army of recently requisitioned trade associations, lobbyists and public relations experts to put up a real defense. Read more.

Bitcoin ATMs coming to gas station, retail chain Circle K: Buying cryptocurrency will be as easy as fueling up and grabbing snacks after a new deal to install bitcoin ATMs in a nationwide convenience store and gas station chain. New Yorkers will soon be able to fill up the gas tank and buy cryptocurrency after gas station chain Circle K announced a deal to install bitcoin ATMs. Read more.

The Sacking of a Crypto Mecca (longread): The creator of America's crypto mecca: Ian Freeman saw cryptocurrency as a kind of moral crusade against the belligerence of the US government. He is best known as the host of Free Talk Live, a libertarian talk radio show syndicated to 185 radio stations across the country. His show became a gathering point for the early Bitcoin community, turning the small town of Keene, N.H, into a crypto mecca. In March, federal law enforcement raided the crypto oasis, tearing it down and arresting six people. The story is much more complicated than it seems. Read more.

LISTEN TO THIS EPISODE OF THE POMP PODCAST HERE

Anthony Pompliano breaks down the most recent analysis of the infrastructure bill, including the importance of bitcoin, the political class’ awareness of the new industry, and where we go from here..

LISTEN TO THIS EPISODE OF THE POMP PODCAST HERE

Podcast Sponsors

These companies make the podcast possible, so go check them out and thank them for their support!

Exodus is an absolute game changer in the crypto wallet space. With over 100 assets supported, one-click built-in exchange, Trezor hardware wallet integration and 24/7 customer support, this is a no brainer for both newcomers and crypto heavyweights. Download Exodus on desktop, iOS, and Android using my code http://get.exodus.com/pomp

Cosmos is building the Internet of Blockchains, marking a new era of interoperability, scalability, and usability. The free flow of assets and data between blockchains with bridges to Ethereum and Bitcoin will unleash the potential of DeFi, NFTs, and much more. Dive into Cosmos at cosmos.network/pomp

OKEx is a leading crypto exchange known for providing the most options for crypto traders and investors. Whether you want to trade spot, futures, options or swaps, OKEx gives you institutional-grade tools and a best-in-class trading engine. The platform offers credit and debit card funding options and supports 40 different fiat currencies, including EUR, CAD, GBP, TRY, INR and RUB, to name just a few. You can invest, trade, and earn yield, all within one place at okex.com. OKEx is not available to customers in the United States.

Choice is a new self-directed IRA product that allows you to buy Bitcoin with tax-advantaged dollars, while still holding your private keys. You can go to retirewithchoice.com/pomp to sign up today.

Unstoppable Domains makes crypto easier by replacing your address with [AnyName].crypto. They allow you to send and receive over 70 cryptocurrencies, including BTC, ETH, and LINK with a single blockchain domain. Go to unstoppabledomains.com and get [YourName].crypto to make your crypto life easier.

BlockFi provides financial products for crypto investors. Products include high-yield interest accounts, USD loans, and no fee trading. To start earning today visit: http://www.blockfi.com/Pomp

Crypto.com allows you to buy, sell, store, earn, loan, and invest various cryptocurrencies in an user friendly mobile app. Join over one million users today. You can download and earn $50 USD with my code “pomp2020” when you sign up for one of their metal cards today.

Public Rec is on a mission to make comfort look good. Their fan-favorite Flex Short is the ultimate crossover short you’ll need all summer long. From the beach to the gym, this quick-drying short has you covered. Comfort starts with a better fit. Free shipping. Free returns. Visit www.publicrec.com/pomp and use POMP at checkout for 10% off!

Circle is a global financial technology firm that enables businesses of all sizes to harness the power of stablecoins and public blockchains for payments, commerce and financial applications worldwide. Circle is also a principal developer of USD Coin (USDC), the fastest growing, fully reserved and regulated dollar stablecoin in the world. The free Circle Account and suite of platform API services bridge the gap between traditional payments and crypto for trading, DeFi, and NFT marketplaces. Create seamless, user-friendly, mainstream customer experiences with crypto-native infrastructure under the hood with Circle. Learn more at circle.com.

Gemini is a leading regulated cryptocurrency exchange, wallet, and custodian that makes it simple and secure to buy bitcoin, ether, and over 30 other cryptocurrencies. Offering industry-leading security, insurance and uptime, Gemini is the go-to trusted platform for beginner and sophisticated investors alike. Open a free account in under 3 minutes at gemini.com/pomp and get $20 of bitcoin after you trade $100 or more within 30 days.

Revolut is a finance app in the US and UK, that say they're the simplest way to access crypto. Sign up today at Revolut.com/pomp and make 3 card transactions to get $15, which you can exchange for any tokens Revolut supports. As usual, when you move your money from fiat to crypto your capital is at risk. See T&C's for details. Revolut is a financial technology company. Banking services provided by Metropolitan Commercial Bank, Member FDIC. Cryptocurrency services provided directly by Paxos Trust Company, LLC.

Did you know nearly 338 million dollars worth of NFTs were sent last year? And in 2021 that number is growing faster than ever. Looking to make your first NFT? Check out NEAR’s fast, scalable, low-cost, open-source platform. Learn why NEAR is the infrastructure for innovation at near.org

Amber - Invest, trade, swap, and earn crypto with Amber App, where new users can receive 16% APR on BTC, ETH, and USD Stablecoins! Click here to sign up now.

LMAX Digital - the market-leading solution for institutional crypto trading & custodial services - offers clients a regulated, transparent and secure trading environment, together with the deepest pool of crypto liquidity. LMAX Digital is also a primary price discovery venue, streaming real-time market data to the industry’s leading analytics platforms. LMAX Digital - secure, liquid, trusted. Learn more at LMAXdigital.com/pomp

You are receiving The Pomp Letter because you either signed up or you attended one of the events that I spoke at. Feel free to unsubscribe if you aren’t finding this valuable.

Nothing in this email is intended to serve as financial advice. Do your own research.

You’re on the free list for The Pomp Letter. For the full experience, become a paying subscriber.

Subscribe

© 2021 Unsubscribe
5 West Hargett St, Suite 1110, Raleigh, NC 27601