The investor claims that bitcoin will be a consensus asset among investors.
Bitcoin is ten times higher than gold, Pompliano argues.
Anthony Pompliano, the founder of Morgan Creek Digital Assets, said that after the current institutional investments in bitcoin, large corporations, banks and even central banks will converge towards bitcoin as a reserve asset.
In an interview with Frank Holland, anchor of CNBC’s Market Alert segment, he asked Pompliano how to explain the sharp correction in the price of bitcoin last Monday. Pompliano claimed that after an almost 300% appreciation since last October, when bitcoin was in the vicinity of $ 10,000, it is normal for these types of corrections to occur. “This normally happens in bitcoin cycles.”
Then, Pompliano referred to the bull run of 2017-2018 to specify that at that time the price multiplied by 20 in one year. “During that cycle there were five corrections close to 30% or higher,” said Pompliano and added that the current cycle is in its early stages and that this is the first major correction. This is just beginning; we will see more corrections and perhaps of greater magnitude in the future.
When asked about the appreciation that bitcoin has had in recent months, Pompliano mentioned as the cause of this revaluation the “quantitative easing” policies implemented by the Federal Reserve since March 2020, reviewed by CriptoNoticias. These policies included, he said, printing money for almost 3 trillion dollars.
The growth rate of inorganic money in 2020 in the US is unprecedented. Source: Federal Reserve of St. Luis.
Even if there is no certainty that those policies will unleash inflation, investors are moving capital into safe haven assets such as gold, real estate and bitcoin, which is perceived as the clear winner of that group of assets.
As a consequence of these perceived advantages of bitcoin, it is going from being a controversial asset and that was perceived against the tide on Wall Street, to a consensus asset for various types of investorssays Pompliano. “Retail investors came first, now there are institutions investing in bitcoin. Then the corporations will come and finally even the central banks will use bitcoin as a reserve asset, ”said Pompliano.
Bitcoin is a better asset, Pompliano asserted. When compared to gold, bitcoin represents a 10-fold improvement over the precious metal, taking into account the technology behind it, he concluded.
Bitcoin registered a correction of 22% on Monday, January 11, reported by CriptoNoticias, which brought its price to USD 32,000, and then rose and positioned above USD 34,000. At the time of writing, BTC is priced at $ 34,712.