• Anthony Pompliano said Bitcoin could go up to $500,000 within this decade
  • The Morgan Creek co-founder attributed Bitcoin's rise to money printing and devaluation of the dollar
  • At some point, Bitcoin would become the global reserve currency, he said

While the price of Bitcoin has already reached $50,000, many analysts think its value could go up further. Anthony Pompliano, the co-founder of Morgan Creek Digital Assets, says Bitcoin could reach $500,000 within this decade and $1 million at some point in the future.

The Morgan Creek co-founder and partner predicts that Bitcoin will one day become the global reserve currency, effectively saying that the dominant cryptocurrency will eventually replace the U.S. dollar in that position. "I think bitcoin will eventually be much much larger than the gold market cap," he told CNBC.

Bitcoin closed Thursday at $51,601, slightly below the all-time high of $52,547, which was hit the previous day. The dominant cryptocurrency went to a parabolic rally in 2020, from $3,800 in March to $29,000 by Dec. 31. This year, Bitcoin tore past $30,000, $40,000 and $50,000 on the back of more institutional investors and corporations investing in Bitcoin. Notable of them is Tesla, which revealed in a recent filing with the Securities and Exchange Commission that it bought $1.5 billion worth of Bitcoin out of its excess cash.

As to why Bitcoin has surged and why institutions and corporates are now putting money into Bitcoin, Pompliano pointed to the central bank policy of printing money and injecting it into the economy. "Everyone from individuals to financial institutions and corporations ran around the world looking for the best way to protect their purchasing power, they ultimately decided it was Bitcoin," Pompliano said.

There will only be 21 million Bitcoins and 18.5 of them are already in circulation. Roughly every four years, the latest was last year, the amount of Bitcoin released per day is cut in half. The decreasing supply issuance, coupled with increasing demand, is also one of the key reasons why the price is going up. For Pompliano, the more people come to the Bitcoin market, the more liquidity the market will have.

"As there is more liquidity, there is more utility. As there's more utility, there's more stability in the price … you get kind of this evolution," he said, noting that the volatility in the Bitcoin price will eventually go away at some point in the future because of the increased number of participants in the market.

Gold-colored Bitcoin coin on ground
Gold-colored Bitcoin coin on ground André François McKenzie on Unsplash