Bitcoin Set to Outshine Gold, Predicts Pomp Investments' Anthony Pompliano
Summary:
Anthony Pompliano, co-founder of Pomp Investments, in an interview with Fox Business, predicted that Bitcoin will outstrip gold due to its strong monetary principles and its strong performance post halving. Highlighting the recent decline in the value of Bitcoin, gold and other financial markets, he attributed this to geopolitical tensions in the Middle East and the selling of liquid assets. Pompliano expects Bitcoin to lead the recovery and continue to perform strongly in the future. He further suggested investors who seek to increase buying power to opt for Bitcoin over gold. His portfolio comprises over 50% Bitcoin.
Anthony Pompliano, the founder, and partner at Pomp Investments believes that Bitcoin, with its strong monetary principles, will overshadow gold after the impending halving supply. In an interview with Fox Business on April 17, he reaffirmed his optimistic outlook on Bitcoin (BTC), observing that the initial cryptocurrency has outperformed any other asset in the four years post the previous halving. "Four years on from the last halving, it was worth $8000. Today it sits at $64,000. Name another asset that has delivered such a strong performance in a four-year cycle," he said in response to anxieties over the recent Bitcoin adjustment.
According to Pompliano, the cryptocurrency market's drawdown that began on April 12 wasn't just about Bitcoin; the decreasing values also hit gold and other financial markets following rising geopolitical tensions in the Middle East. Since Saturday, April 13, when Iran launched drone and missile attacks on Israel, Bitcoin has depreciated by around 9%, with Ether (ETH) dropping by 8%. Meanwhile, data from TradingView shows the S&P 500, Nasdaq 100, and Gold Index (XAU) also losing 1.83%, 3.5%, and 5% respectively.
Discussing the drop, Pompliano explained, "People saw Bitcoin’s drop on Saturday and exclaimed that it was down! But the decline also hit gold and other financial markets that were open." He implied that during times of political unrest, investors tend to sell liquid assets for U.S. dollars, which led to the sale of Bitcoin, gold, stocks, and bonds.
Pompliano anticipates that Bitcoin, once the panic subsides, will be at the forefront of the financial recovery. He believes it will continue to perform strongly for another four-year cycle. He asserted that the distinctive characters of Bitcoin and Gold, both outside the system and unexpandable, uphold principles of sound money. He advised investors seeking protection against downward movement to opt for gold, due to its lower volatility. However, for those wanting to enhance their buying power, he proposed Bitcoin as the preferred choice.
In Pompliano’s words, "A product's digital rendition is always larger and more valuable than its analog counterpart. Therefore, Bitcoin will, one day, be effectively worth more than gold."
With the forthcoming Bitcoin halving predicted to notably alter the market dynamics, Pompliano reckons it could be a "sell-the-news" event but encourages investors to hold on to Bitcoin for long-term profits. He also expressed his trust in the dollar-cost averaging of Bitcoin - a method of fixed steady investment in BTC, that is likely to be profitable in the long run.
Pompliano divulged to the news anchor on Fox Business that over 50% of his portfolio consists of Bitcoin.
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Published At
4/17/2024 11:28:06 PM
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