In an exclusive interview with Cointelegraph, Anthony “Pomp” Pompliano explained why Bitcoin is the best asset to preserve wealth in the upcoming future.
Pompliano reconfirmed his bullishness on Bitcoin, revealing he bought more if it right after the latest market crash, when most investors sought refuge in the U.S. dollar.
When asked whether there may be more investment-worthy cryptocurrencies on the market, Pomp pointed out that “money is a belief system, and until now the market believes that Bitcoin is more valuable than everything else”.
The halving can’t be priced-in
Discussing the possible impact of the imminent Bitcoin halving on prices, Pompliano said that it is impossible for this event to be priced-in, since among Bitcoin holders there is no 100% consensus on the meaning of this event and its impact on Bitcoin’s value. Also, he said, there will be new buyers before and after the halving, who aren’t even aware of the event. That is why, he thinks that “within the 18 months post-halving, we’ll see an explosion in the US dollar price [of Bitcoin]”.
“The end of the fiat experiment” and why Bitcoin is better than gold
Pompliano pointed out that the dollar-based system will eventually fail as most other currencies have failed in the past. Bitcoin, on the other hand, has the properties to outlive fiat, given that it shares some of the characteristics of gold, which has been around for thousands of years.
According to Pompliano, both Bitcoin and gold will do well in the near future. Still, bitcoin remains a better investment given its potential to go higher in value and the transparency of its supply.
“How much gold is there in the world? You can’t tell me (...) There is no person in the world who can answer this question. I am not putting my wealth there”.
The best Investment strategy in times of crisis
Despite his long term bullishness on Bitcoin, Pompliano admits that people now should hold tight to their cash in order to survive the COVID-19-induced economic crisis and pay for their immediate needs. Investors should prepare for the upcoming hyperinflation by buying other assets only once the ongoing storm has passed.
“You can put a bandana around your eyes and pick any asset, it will probably go up in price at some point”.
As for himself, he is mainly building his own portfolio on three types of assets:
“I have cash, I got a bit of real estate, and then I put my money into Bitcoin to protect my wealth”.
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