Summary:
Anthony Pompliano describes Bitcoin as gold on steroids.
He believes Bitcoin's potential to outperform gold is due to increasing adoption.
Bitcoin's adoption is bottom-up, starting with individuals and now moving to corporations.
He predicts central banks will eventually invest in Bitcoin, boosting its price.
More than 50% of Bitcoin has not moved in the last two years, indicating a trend towards holding.
Bitcoin: Gold With Wings
Longtime crypto bull Anthony Pompliano asserts that the flagship digital asset Bitcoin (BTC) is akin to gold on steroids. In a recent interview on Fox Business, he discussed the implications of the US dollar's debasement for both Bitcoin and gold. He believes that while both assets benefit from this debasement, Bitcoin has the potential to significantly outperform gold due to its increasing adoption.
"If you look at gold and the S&P 500 over the last five years, the compound annual growth rate is about the same. Gold is up 13% and the S&P is up 14%. Bitcoin has destroyed that. So I like to say that Bitcoin is gold with wings. Bitcoin and gold both go up for the same reason. They’re debasing the dollar. But Bitcoin is much more sensitive. It’s an earlier asset that the world is trying to price in."
Pompliano highlights the unique adoption curve of Bitcoin:
- Individuals were the first adopters, contrary to traditional technologies that begin with governments and corporations.
- Corporations and financial institutions like BlackRock and Fidelity are now starting to embrace Bitcoin, with the expectation that central banks will follow suit.
"Central banks today own 12% of the global gold supply. I believe that they will eventually start to buy Bitcoin. That would be very bullish for the price of Bitcoin."
He predicts a shift in how people store wealth, suggesting that stablecoins will replace checking accounts and Bitcoin will evolve into the savings account of the future:
- More than one out of every two Bitcoin has not moved in the last two years, indicating a growing trend of holding rather than trading.
As of now, Bitcoin is trading at $67,694, reflecting a 1.5% drop in the last 24 hours.
Watch the Full Interview
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets.
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