As Bitcoin (BTC) approaches its previous peak, the surge in the cryptocurrency market continues to captivate investors.
During an appearance on CNBC’s Squawk Box, Anthony Pompliano, CEO of Professional Capital Management, discussed the factors driving Bitcoin’s ascent and why it remains a focal point for investors.
Pompliano suggested that BTC’s rise is grounded in a straightforward yet compelling rationale: “Central banks will perpetually print money. Consequently, BTC’s value is poised to grow over time.” He emphasized viewing Bitcoin as a “savings technology,” explaining that individuals are saving their earnings by cutting expenses and channeling those savings into BTC. This trend enhances BTC’s value progressively.
He pointed out the intricate nature of traditional financial markets: “Investing in stocks requires tracking companies, products, interest rates, and balance sheets. In contrast, Bitcoin offers a much more straightforward narrative.”
Pompliano believes that BTC is establishing itself as the “new standard” for contemporary finance. He noted that since 2020 while the S&P 500 has doubled in value; it has depreciated by 90% when measured against BTC. Thus he stated: “No one can outperform BTC,” which leads many investors to conclude: ‘If we can’t surpass it let’s invest in Bitcoin.’
He also highlighted how Bitcoin’s supply is becoming increasingly fixed: “A growing number of investors are holding onto their Bitcoins long-term without any intention to sell which tightens supply and inevitably drives up prices.”
Acknowledging that this year gold has outperformed BTC Pompliano remarked on their complementary roles as stores of value saying gold may currently have an edge but with historical fourth-quarter gains averaging 60% for bitcoin there’s still potential upside before year-end noting over five years gold rose by 100% whereas bitcoin surged by 1,000%.
Pondering investor demographics he observed: “Gold holders tend to be older traditionalists however given bitcoin’s fifteen-year history its investor base too is aging potentially leading even central banks towards adding btc reserves.”
“Bitcoin” Pompliano concluded “is like gold but with wings.”
***;This does not constitute investment advice.