Anthony Pompliano On Bitcoin: “Hard Not To Be Incredibly Bullish”

Why Are Bitcoin Holders Bullish About The Long Haul?

Morgan Creek Co-founder, partner and major Bitcoin bull, Anthony Pompliano says it is hard not to be bullish on Bitcoin considering the ongoing chaos in the world. Pompliano made the declaration due to the ongoing tension concerning fiat currency, especially the U.S Dollar which has been considered as a reserve currency for centuries.

Several questions are being raised on the future of the USD because of the indiscriminate printing of the currency by the Federal Reserve. The Fed has so far this year printed trillions of dollars for several reasons, one of which is the COVID-19 stimulus both for businesses and for individual citizens to survive the economic effects of the pandemic. This has raised concerns among financial experts as the president of the Federal Reserve Bank of Minneapolis, Neel Kashkari said in March that the Fed had an “infinite amount of cash”.

Investors rush to Bitcoin to avoid inflation

With the Fed showing its readiness to print the USD infinitely, financial experts expect major inflation caused by the excess cash that will flood the economy. Investors are therefore looking for an alternative reserve currency and so far, the arrow points to Bitcoin. This year alone, several institutional investors have rushed to the Bitcoin space, according to hedge fund manager Michael Novogratz.

The leading institutional Bitcoin investment platform Grayscale has also been buying Bitcoin like never before, suggesting an increasing demand from institutional clients. The platform currently has $4.1 billion in assets under investment (AUM).

This growing interest and demand are likely to drive a bull market for the asset eventually. This is why bitcoin’s bullish sentiments are also on the rise and incredible positive performance is expected although the current price performance isn’t very enticing.

A better hedge than gold?

There is a long-standing argument as to whether Bitcoin is a better hedge against inflation than gold. Bitcoin is so far one of the best-performing assets in the year 2020 and may do even better.

Gold however is said to have intrinsic value unlike Bitcoin and is more stable. The recent rise in interest for Bitcoin may propel it to beat gold extensively in the near future, according to Bitcoin supporters who are calling for investors to acquire the asset instead of gold in order to possibly gain from the coming bull market which pundits say will be tremendous.

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