Louisiana Purchase of the 21st Century

I was at the Bitcoin Conference this past July in Nashville. I was in the audience to watch Michael Saylor provide his future projections for Bitcoin and saw him coin the term “triple maxi.” The presentation is one I have sent to numerous of my friends who are looking to learn more about Bitcoin. I saw Robert F. Kennedy Jr. give arguably, at the time, one of the more important speeches on Bitcoin ever. In that speech, he discussed a plan for the United States to purchase 4 million of the 21 million total Bitcoin. The next day, I saw President-Elect Donald Trump speak at the conference. When President-Elect Trump finished speaking, there was a rush to exit the auditorium by almost everyone. As this was happening, Senator Cynthia Lummus from Wyoming walked to the pedestal to announce her Legislation that aimed to change the fate of the United States.

Her announcement of “The Bitcoin Reserve Bill,” or as she referred to it, “Our Louisiana Purchase moment,” may have been overshadowed five months ago by 2 Presidential Candidates coming to the conference, but is now making headlines today. The legislation states a plan to designate the 210,000 Bitcoin already held by the United States government to be stored as a reserve and then to purchase up to 1 million Bitcoin over a 5 year period.

In July, I thought this was the highlight of the Bitcoin conference.
Today, I think this idea is one that will change the future of the United States.

With Bitcoin, it pays to be first.

But with Bitcoin, everyone finds it eventually.

If the United States were to adopt a Bitcoin strategic reserve in the early days of President Donald Trump’s administration it would not only signal to the world that Bitcoin is 100% legitimate and viable as a sound form currency but also that the United States is a leader in Bitcoin.

Since there will only ever be a maximum of 21 million Bitcoin, it is not physically possible for all of the world’s superpowers to purchase as much as they want. Eventually, the price per Bitcoin will be too high or there won’t be enough sellers to satisfy the demand that will occur once nation-state adoption is not only commonplace, but a requirement for a successful economy and stable currency. For the United States, they must act now while Bitcoin is still cheap or risk losing.

The idea of buying an asset while it is “cheap” is nothing new to the United States. The island of Manhattan, which became the thriving metropolis of New York City was originally purchased by the Dutch from the Lenape tribe for an estimated $24 of beads and buttons. Obviously, there is more to the story considering how New York City became New York City but the overarching idea is that one side of this trade saw the potential value that New York could have and acted upon it.

The original Louisiana Purchase was similar. France needed money to fight the British and Napoleon Bonaparte opted to sell 530,000,000 square miles of land for $15 million or roughly 7 cents an acre at the time ($371 million in 2023 dollars or $0.70 an acre). This purchase nearly doubled the size of the United States and is now considered one of the greatest real estate deals in history. The land stretched from the Gulf of Mexico to Canada and from the Mississippi River to the Rocky Mountains and helped the United States continue westward expansion and fulfill the idea of a “manifest destiny” to be a nation from sea to shining sea. The idea here was similarly that one side of the negotiation saw the potential value that this land could have and acted upon it.

The lesson? If you see an opportunity that you project to be immensely valuable in the future, take action. I believe the most asymmetric bet in our lifetime is purchasing Bitcoin today.

Presently speaking, there is the opportunity for the common man, other nations, and even states within the United States to “front-run” the United States Federal government and purchase Bitcoin now, prior to any pending strategic reserve being adopted. I believe this is already happening.

On Thursday, November 14th, 2024, Pennsylvania lawmakers proposed the “Pennsylvania Bitcoin Strategic Reserve Act” which would allow the state treasury to invest up to 10% of its $7 billion funds into Bitcoin. Republican state Representative Mike Cabell said, “By integrating Bitcoin into our reserves, we’re not only protecting Pennsylvania from inflation’s relentless impact but also positioning our state as a leader in financial resilience and innovation.” There have been other rumors that other nation-states are purchasing large quantities of Bitcoin now.

I believe that we have officially entered a new race. A race for nations, corporations, billionaires, and normal citizens to stockpile as much Bitcoin as they can in order to preserve their capital into the future with the United States leading the way. At a price of less than $90,000 per Bitcoin, the United States are once again on the brink of pulling off another Louisiana Purchase moment.

The next few months and years are going to change everything.

Buckle up.

Stack SATs.

The views and opinions expressed here are for entertainment purposes only and should, in no way, be interpreted as financial or investment advice. Always conduct your own research when making an investment or trading decision, as each such move involves risk. I am not a financial advisor and do not claim to be qualified to convey information or advice that a registered financial advisor would convey to clients as guidance. Nothing contained in this e-mail/article constitutes, or shall be construed as, an offering of financial instruments, investment advice, or recommendations of an investment strategy. If you are seeking financial advice, find a professional who is right for you.