Anthony “Pomp” Pompliano, co-founder of Morgan Creek Digital Assets, has 50% of his assets in bitcoin (BTC) and expects the price of bitcoin to rise to $ 100,000 by the end of 2021.
Pompliano explains during an interview on July 5 with cryptocurrency news site Cointelegraph why he has 50% of his total assets in bitcoin. When he was asked whether this is a risky investment, he replied that such a risk is relative per individual and that it is riskier to have invested all your assets in fiat money:
I would argue that 100% fiat money exposure is a very bad idea, right? Because if you have 100% of your assets in one of those fiat currencies and you experience hyperinflation or fail, you have a big problem.
In an interview with BloxLive.tv on July 2, he predicted that the price of bitcoin will rise to $ 100,000 by the end of 2021. He indicates that he is currently about 70 to 75% convinced of his prediction and that if the current one continue trends he is 90% convinced.
He bases his prediction mainly on traditional supply and demand economics. He says that one of the biggest factors that will further increase the price will be the next “halving” of bitcoin. A halving is the moment that the reward for mining blocks on the blockchain is halved. For bitcoin that will probably be next May.
In August last year, I predicted that bitcoin would drop to $ 3,000 before returning to $ 10,000. It did that essentially […] Now I think it’s going to go to $ 100,000, but […] there will be more volatility: there will be parabolic runs like we saw in June and then there will be 20-30% pullbacks. Along the way many people will say that the top has been reached – they will be wrong.
Pompliano also mentioned Libra as a factor, the upcoming cryptocurrency of Facebook. According to Pomp, entering the cryptocurrency market by Facebook is a bullish signal and will lead people to the world of cryptocurrencies:
People may not like Zuckerberg, but no one thinks he’s stupid. Bitcoin will benefit from the fact that libra is a “gateway drug” for cryptocurrencies.
Mike Novogratz, founder and CEO of Galaxy Digital, recently predicted that bitcoin would rise to $ 20,000 by the end of this year.