Bitcoin Accumulation in the U.S.
In the competitive landscape of Bitcoin accumulation, states like New Hampshire are not only vying against each other but also positioning themselves against federal financial maneuvers, asserts Representative Keith Ammon (R). He argues that as U.S. debt continues to escalate, currently estimated at approximately $37 trillion, the federal government will inevitably resort to printing more money, leading to a devaluation of the dollar. Speaking to Decrypt, Ammon emphasized that it is crucial for states to monitor how much the federal government is borrowing to maintain its operations.
State Financial Stability and National Debt
Carrying a compact device that reflects this growing debt in real time, Ammon pointed out a significant correlation between a state’s financial stability and national debt.
“The state is interconnected with this national debt, as our economy is tied to the U.S. dollar. The government’s solution to its debt problem typically involves inflating the currency, thus reducing the debt’s real value over time—this is a common tactic among governments,”
he stated.
New Hampshire’s Bitcoin Initiative
New Hampshire made headlines earlier this month by becoming the first state to officially authorize the accumulation of Bitcoin. Following suit, Arizona introduced a similar initiative shortly thereafter, while Texas appears to be moving toward establishing its own Bitcoin reserve. In contrast, some states have turned away from Bitcoin-related legislation since the Biden administration took office.
“I expect that momentum could build from New Hampshire’s initiative, especially with a large state like Texas potentially joining the fray,”
Ammon, who has served in the New Hampshire House since 2014, remarked.
Concerns Regarding U.S. Debt
The narrative surrounding skyrocketing U.S. debt continues to gain traction among lawmakers, with figures like Senator Rick Scott of Florida recently critiquing President Trump’s spending bill for failing to adequately address the ongoing deficits. Ammon’s recently proposed Bitcoin bill aims to insulate New Hampshire against the diminishing purchasing power of the dollar, a reality he has witnessed at the local governance level.
“In just the last four years, inflation has devalued the purchasing power of the dollar by around 25%. For states to thrive, they must devise methods to navigate these economic challenges,”
he noted.
Investment Strategy and Risks
However, Ammon clarified that New Hampshire will not fully commit its pension funds or trusts to Bitcoin investments. Instead, the legislation offers the state treasurer the flexibility to invest a minor portion of state resources into Bitcoin while ensuring that these investments are consistently adjusted to mitigate risk.
“Taking on excessive risk could jeopardize the state’s credit rating,”
Ammon cautioned.
“If we recklessly invest large portions in Bitcoin without restraint, our rating can plummet, resulting in skyrocketing borrowing costs. It’s essential to maintain a balance between risk and fiscal responsibility.”
