KEY POINTS

  • Anthony Pompliano said Bitcoin could eventually eclipse gold's market size
  • He said he's sticking to his $100,000 price prediction by end of 2021
  • The CEO also said the third halving would continually impact the price of Bitcoin

Morgan Creek Capital CEO Anthony Pompliano predicts Bitcoin will hit $400,000 or $450,000 as its long-term price because of its digital nature, its increasingly perceived value over other assets like gold and the dollar and its scarcity.

In an interview with journalist Peter McCormack on the podcast "What Bitcoin Did", Pompliano said the benchmark cryptocurrency’s digital nature will allow it to eclipse any analog counterpart. He argued that any analog business with a digital counterpart would eventually see its digital business becoming bigger than the analog counterpart. Digitization, Pompliano said, brings all kinds of advantages, including the ability to easily expand its market. 

At the moment, people see Bitcoin as the digital version of gold, the analog asset. When Bitcoin, which is the digital counterpart, eclipses gold, the price and market size should then be higher. “If the gold market is $8 trillion, that puts Bitcoin at $400,000 to $450,000 today,” he told McCormack. His biggest worry, he explained, is that he won’t be alive to witness that day as it could take years to happen.

Pompliano does not believe that Bitcoin will be equal to gold’s market size in the future. “It’s better. It’s going to capture more market,” he said. 

Pompliano said in 2019 that Bitcoin will hit $100,000 by 2021. In the interview, he said he’s sticking to this number and attributed the current U.S. monetary policy that will serve as a catalyst in the cryptocurrency’s price appreciation. The Federal Reserve is printing money necessary for the stimulus packages to help revive the U.S. economy during the current health crisis. The printing of more dollars devalues the world’s reserve currency. “You simply can’t print trillions of dollars and have no impact on that currency,” Pompliano emphasized, stating that this weakening causes asset prices to appreciate.

The third halving would continually impact the price of Bitcoin, the Morgan Creek CEO said. With the supply of Bitcoin every 10 minutes cut in half, from 12 BTC to 6.5, this meant every day only 900 bitcoins get created. “If demand stays the same, price would eventually go up,” he said.

Linking the scarcity to the stimulus package, Pompliano said the scarcity and the new money coming to the hands of retail investors would allow demand to continue to increase.

“I think 2021 will be an absolute chaos in terms of volatility as the price of Bitcoin surges upward,” Pompliano said. 

bitcoin-2007769_1920 Bitcoin Photo: Bitcoin