To investors,

The White House is rumored to have President Trump sign an executive order later today that would allow individuals to buy bitcoin and cryptocurrencies in their 401(k) retirement accounts. This is a massive development for the crypto industry and one that should have happened a long time ago.

There is an estimated $43 trillion in all US retirement accounts, including about $9 trillion in defined contribution plans like 401(k)s. To put that in perspective, the entire crypto industry’s market cap is less than $4 trillion, so this executive order will open up a significant pool of capital to flood into bitcoin and crypto assets.

Now plenty of people will moan and complain about the White House doing this. They will claim bitcoin is risky. They will screech about how inappropriate it is for individuals to be given the ability to allocate their retirement funds how they see fit.

But that is all nonsense. First, every American should be allowed to do whatever they want with their money. If you want to gamble, knock yourself out. I wouldn’t recommend it. But why should the government tell you what to do with your money? If you want to speculate on a new company, go for it. And if you want to invest in bitcoin, there should be no politician or regulator that gets in your way.

For the critics, your job is not to stop people from doing what they want with their money. Your task is to increase financial education in America so people make intelligent, rational decisions. If you don’t want people gambling, explain the high loss ratio to folks. If you don’t want them speculating on a penny stock, educate the person on the benefits of long-term compounding in high-quality assets.

The days of treating American citizens like they are a bunch of idiots is over. The rise of sophisticated self-directed retail investors is upon us. Many of these individuals are outperforming the institutional investors. Are there people who screw up and make bad decisions? Of course. But that is also how you learn.

We must bring back personal responsibility. We don’t need a maternalistic state micromanaging the individual investment portfolios of our people.

In fact, if the critics really wanted to take up an important cause, they should start questioning why so many American retirement accounts are directed to holding US treasuries. These assets are essentially guaranteed to lose value over long periods of time, which a retirement account is reportedly optimized for. So if we are willing to let people put their retirement account in the high-risk asset of treasuries, why can’t they buy bitcoin?

For example, the iShares 20+ Year Treasury Bond ETF has lost nearly 50% of its value in the last 5 years. Antiquated financial advisors are out here obliterating boomer portfolios with the outdated 60/40 portfolio allocation.

Treasuries are down only and bitcoin is up only over the long run. So unleash the retirement accounts. Give people their freedom back. And let the investors have a fighting chance to save themselves from the financial disaster that awaits them if they can only allocate to the “safe” investments of the past.

These investors need a fighting chance to invest because the US dollar is being destroyed. Creative Planning’s Peter Mallouk writes “Over the last 50 years, the purchasing power of the US Consumer Dollar has fallen by over 83%. At the same time, the S&P 500 has increased by over 150x – even after accounting for inflation. Why you need to invest…”

This is not rocket science. People just need a shot at outpacing this insane currency debasement.

Galaxy’s Mike Novogratz was on CNBC this morning and he explained the significance of opening this retirement account market to bitcoin and crypto.

So game on ladies and gentleman. The critics are up in arms, but they are on the wrong side of history. Bitcoin and crypto is here to stay. And now it is coming to a retirement account near you.

Hope everyone has a great day. I’ll talk to everyone tomorrow.

- Anthony Pompliano

Founder & CEO, Professional Capital Management

The Summer of Bitcoin & Crypto Explained

Polina Pompliano and Anthony Pompliano discuss why bitcoin is winning, the summer of crypto, what’s changing with artificial intelligence, why the banks will have to embrace bitcoin, why Warren Buffett and Berkshire are losing, and this one idea you have to realize.

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