may be entering a two or three-year bull-market now, according to Anthony Pompliano, CEO of Morgan Creek Digital.
US dollar Just as ‘Untied’ as bitcoin?
During a CNBC interview, on 14 May 2019, Pompliano that neither nor the dollar is tied to anything. Whereas, in contrast, the value drivers of all equities and every other asset are tied to something, such as earnings, GDP, interest rates, etc.
“ is not tied to anything”
“Neither is US dollars and how big is your cash position?” – 😎
— Jason Choi (@mrjasonchoi)
However, many do not consider the US dollar to be as untied as the world’s most popular . For example, Twitter user Charles Brun remarks,
Let’s not be totally delusional here. The USD is tied to the US government and all its military and economic might.’
And Reddit user eyeI0 , “Would USD continue to be valued as the reserve currency of the world if you couldn’t pay taxes in USD?”
‘The BTC Bulls are Back’
During the same CNBC interview, Pompliano advises investors to bet on and have it in their portfolios because “ is a non-correlated asymmetric return asset.”
Pompliano also argued that the bulls are returning to the market. exchanges are already seeing all-time , with futures reaching 1.2 billion USD. Meanwhile, both retail investors, as well as financial institutions, such as Fidelity, are moving back into the crypto market.
On top of that, the US- trade war is also helping to drive ’s value higher, while demonstrating ’s inherent attribute as a safe-haven currency.
As a result, Pompliano says,
We hit the bottom of the bear market, and now we have entered into this bull market. It would not surprise me if we entered a kind of two to three-year bull market now.
He also highlighted ’s programmed scarcity as over 76 percent of the total that will ever exist have already been created. Pompliano considers scarcity as one of ’s value drivers.
Indeed, as is set to happen every four years, in May 2020 block rewards will halve again. This will reduce output and restrict supply, pushing its even if demand remains constant
As Bitcoinist reported, ’s model that posits scarcity and value being in a direct relationship puts the price of one at $55,000 by 2020.
Given the current price today of around $8,000, the model also suggests that the market may already be frontrunning the next halving event.
Do you think is tied to anything? Let us know in the comments below.
Images via Shutterstock,
Published at Sun, 26 May 2019 20:51:11 +0000
