For some years now, various crypto advocates have stepped up to argue that cryptocurrencies can actually be a good store of wealth. Among the many cryptos available in the market, Bitcoin has gained much favor to that effect. One of the well-known people to confess this is Anthony Pompliano. Pompliano is an investor and co-founder of Morgan Creek Digital.
Need For Diversification
In a recent interview, Pompliano argued that having all your wealth in fiat currencies is a huge risk because it could prove to be a huge loss if the fiat fails or hyper-inflates.
Going on, “Pomp” mentioned the need for diversification, and in his opinion, Bitcoin presents a really great opportunity for that considering that the crypto has one of the most secure networks. That’s largely because the network is designed to employ a defense-first approach, making it very appealing to many users.
Bitcoin Could Be A Global Reserve Currency
Besides having a secure network, Bitcoin scores more points by virtue of its high market profile as well as its scarcity, meaning that the market forces of demand and supply are still effective in the Bitcoin market. As supply diminishes especially due to block reward halving and FOMO, prices increase.
Also, Bitcoin’s decentralized nature makes it impossible to be centrally controlled. Pompliano pointed out that for long, the world reserve currency has been controlled by the nation with the biggest military and economic muscle. Bitcoin settles at increasing its chances of one day becoming the sole world reserve currency under no one’s direct control.
BTC At $100k By 2021
Pompliano joined numerous other crypto analyst and investors that have predicted Bitcoin’s price to rise astronomically in the coming months and years. According to ‘Pomp,’ BTC could see $100k in value by the end of 2021.