Anthony Pompliano, a long-time cryptocurrency bull, believes the digital currency Bitcoin (BTC), is like gold injected with steroids.
The founder of venture-capital firm Pomp Investments said in a recent interview with Fox Business that devaluation of the US Dollar is good for Bitcoin as well as gold. However, due to increased adoption, Bitcoin could be able to outperform precious metals.
The compound annual growth rates of gold and S&P 500 are about the same. The S&P 500 is up by 14% and gold is up by 13%. Bitcoin has blown that away. Bitcoin, I say, is like gold on wings. Bitcoin and gold are both rising in value for the same reasons. The dollar is being devalued. Bitcoin, however, is more volatile. The world has been trying to value an older asset.
Bitcoin’s uniqueness is its bottom-up approach. The majority of technology is top-down.
First, it is the military and government that adopts this technology, followed by corporations, and finally, individuals. Then they either get a phone or a desktop computer. The last of the lot.
Bitcoin is the exact opposite. Individuals got the first Bitcoins. We’re now seeing financial and corporate institutions, like BlackRock and Fidelity, adopting this. It will be the central banks, and eventually it will be the governments. Today, central banks own about 12% of global gold. They will start buying Bitcoin eventually, I think. This would have a very positive impact on the Bitcoin price.
He believes people will also increasingly choose to store their money in Bitcoin and stablecoins instead of traditional bank accounts.
If you consider the old financial system you’ve got a bank account and a savings. Stablecoins are replacing the checking account. This is just digital dollars.
Bitcoin has become a kind of savings account. The beauty is that you can put money in it and not move it. If you check on the blockchain, you will see that two thirds of all Bitcoin have not changed in the past 12 months, and more than half of them in the previous two years.
Bitcoin was trading at $67,694 as of the time this article is written, down by 1.5% over the past 24 hours.
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