Senator Lummis bought Bitcoin at $330: ‘one of the strongest stores of value’

on Jun 29, 2021
  • Senator Cynthia Lummis (R-Wyo.) first bought Bitcoin at $330.
  • She said it is 'one of the strongest stores of value'
  • Lummis highlights Bitcoin's 'defined scarcity' as a reason to be bullish.

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Senator Cynthia Lummis (R-Wyo.) is making a name for herself as one of the most vocal backers of Bitcoin (BTC/USD) in US politics. She said during the CNBC Financial Advisor Summit on Tuesday that she first bought the digital coin at $330 and has no intention of pocketing her large gains.

Bitcoin as a store of value

Lummis said she sees Bitcoin as “one of the strongest stores of value” for the long-term, perhaps ironically in part due to political considerations. She explained the US Congress is spending trillions of dollars and “flooding our economy” along with the global economy with US dollars. There is “no way” that the US cannot debase the value of the dollar so exposure to Bitcoin as part of a “very diverse asset allocation” is a prudent investment strategy for the long-term.

Lummis continued that she wants to see retirement funds invest in Bitcoin and other cryptocurrencies that are safe and comply with anti-money laundering laws. Personally, she said she only invested in Bitcoin because it is the only coin she understands. However, she acknowledges this “doesn’t mean that Ethereum (ETH/USD) might not have benefits as well.”

Bitcoin has ‘defined scarcity’

Part of the bullish case for investing in Bitcoin has to do with its scarcity, she also said during the CNBC Financial Advisor Summit. Unlike the US dollar, we know that a set amount of Bitcoins will be unlocked over the many decades ahead until all 21 million coins have been succesfully mined. She said:

I don’t want everybody putting all their money in bitcoin just like I don’t want everybody putting it in dollars and putting it under a mattress. I like diversification. But to me, since there’s only going to be 21 million bitcoin ever mined, it’s a good store of value because it has defined scarcity.

Despite her belief that investors should in part sell US dollars for Bitcoin, she still maintains a position that the US dollar has to remain the world’s reserve currency. This means that the US dollar has to adapt to the times and perhaps create a digital currency that will act as the “digital reserve currency of the world.”