Anthony Pompliano, co-founder of Morgan Creek Capital Investment, recently appeared on CNBC’s The Exchange. There, the Bitcoin guru talked about cryptocurrency legislation and adoption. He even made the claim that
[Bitcoin] is going to end up in every institutional investor’s portfolio.
Of course, he’s not the only one saying things like this. It sounds more believable if you have a firm understanding of the things like the halving, crypto in institutional investment, and the Libra hearings. So, let’s take some time to unpack all of that.
“Bitcoin Is Here to Stay”
I think we’re at a tipping point now where Bitcoin is here to stay, Pompliano said in the interview.
And it’s going to end up being in every institutional investor’s portfolio at some point in the future.
The reasoning that he gave has to do with increasing infrastructure around the cryptocurrency. Its general operations haven’t changed a whole lot since it launched. However, the network around it has developed to include more security, more varied uses, and easier, more secure adoption.
The more infrastructure that’s built around [Bitcoin] the more likely it is to never go away, said Pompliano.
However, there are barriers to adoption and to higher values. Pompliano defined these barriers as fear of regulation, a lack of understanding, and difficulty adopting.
Friction is going to go down, people will become aware of it, and I think regulation will get worked out, and ultimately more people will end up getting exposure to this asset, said Pompliano.
And that will be a net benefit to Bitcoin over a long period of time.
Pompliano and Bitcoin’s Institutional Investors
Before we get into the other things that we’re going to unpack here, let’s talk about Pompliano. Pompliano is a big name in cryptocurrency education and advocacy. However, he tends to focus on cryptocurrency as a speculative asset.
Popularly known as “Pomp”, Pompliano, as mentioned above, is a co-founder of Morgan Creek Digital Investment. The branch of Morgan Creek focuses on helping institutional investors get into cryptocurrency. It’s part of a trend that started late last year and that many regard as what ended the crypto winter.
While we’re all happy about the end of the crypto winter, some pure crypto supporters aren’t happy about institutional investment. Institutional investors, Pomp included, tend to talk about cryptocurrencies as speculative assets, like stocks. That is, opposed to talking about cryptocurrencies as currencies like the pound.
However, some investors also see fiat currencies as speculative assets. Many, including Pompliano, theorise that cryptocurrencies are of interest to institutional investors as hedges against fiats.
People who are familiar with Pompliano won’t be surprised to hear his claim that every investor will have Bitcoin. The last time that we heard much from him, he was predicting that it would hit US$100,000 by the end of the year. To be fair, he has some company. Fellow Bitcoin investment proponent Max Keiser has gone on record making the same claim.
Libra and Calls for Legislation
Pompliano is also a former Facebook staffer, which may or may not impact the way he discusses Libra.
Lately, it seems like every discussion of cryptocurrencies has involved Libra. The cryptocurrency project is proposed to launch next year. For better or worse, most people associate it with Facebook. That’s despite the fact that Facebook is one of several partner organizations including retailers, financial services, and human rights groups.
Similar to institutional investment, the cryptocurrency community is split on Libra.
Tribalists think that the coin will only be another competitor for their favourite crypto. People who are a little more open tend to think of the impact that the idea of Libra will have on the idea of crypto. Some experts, including Pompliano, think that Libra will introduce more people to crypto. In this way, it might actually be a good thing for other coins.
However, not all of the Libra press has been positive. Libra has also drawn the attention of legislators calling for more control of cryptocurrencies.
Pompliano’s theories on a US$100,000 Bitcoin and its inclusion in more financial portfolios have to do with the halving. In case you are newer to cryptocurrencies, the halving is something that many cryptocurrencies do to maintain scarcity.
During the halving, mining becomes more difficult and less rewarding. That is, less rewarding in terms of the number of coins. It may be more rewarding if the value of those coins goes up. Some experts believe that the halving itself will necessarily drive the price up. However, historically, the value change around halving has been a function of the halving and other sentiments.
Will It Come True?
Like other previous big Pompliano predictions, we can’t know how accurate this one will be. However, the fact that he made it is a testament to crypto’s growing stability and value.
Jon Jaehnig is an American freelance writer specializing in Technology and Health. Jon has degrees in Scientific and Technical Communication and Journalism from Michigan Technological University and lives in Michigan’s Upper Peninsula with his wife and cat. For more from Jon, you can follow him on LinkedIn and Twitter.