dailyhodl.com
Longtime crypto bull Anthony Pompliano believes that the flagship digital asset Bitcoin (BTC) is gold on steroids.
In a new interview on Fox Business, the founder of venture capital firm Pomp Investments says that the debasement of the US dollar is bullish for both Bitcoin and gold, but the flagship crypto asset could outperform the precious metal due to 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. And 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.
What’s very unique about Bitcoin is that it’s a bottom-up story. Most technology goes top-down.
Militaries and governments, they adopt it first, then corporations and then finally individuals. They get a smartphone or they get a computer on their desk. They’re the last ones.
Bitcoin was the opposite. The individuals got it first. Now we’re seeing corporations and financial institutions like BlackRock and Fidelity start to adopt this. Eventually, it’s going to be central banks and it is going to be governments. 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 also believes that people will increasingly store their wealth in stablecoins and Bitcoin instead of a traditional bank account.
“If you think of the traditional financial system, you have a checking account, you got a savings account. That checking account is being replaced by stablecoins. It’s just dollars in a digital rail.
Bitcoin is becoming that savings account and the beauty of a savings account is you put your money there and you don’t move it. So if you go and you look on-chain, you can see that more than one out of every two Bitcoin has not moved in the last two years, and two out of every three Bitcoin has not moved in the last 12 months even though Bitcoin’s price has tripled during that time period.”
Bitcoin is trading for $67,694 at time of writing, down 1.5% in the last 24 hours.
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