Anthony Pompliano, co-founder of cryptocurrency management company Morgan Creek Digital Assets and a well-known Bitcoin bull, has revealed that he believes the price of bitcoin will reach $ 1 million per coin.
Speaking to CNBC's Melissa Lee, Pompliano was asked about the recent price forecast that JPMorgan analysts led by Nikolaos Panigirtzoglou wrote in a note to customers that in the long term the BTC price could reach $ 146,000 or more.
Panigirtzoglou and his team wrote that the elimination of gold as an alternative currency implies a “great advantage for Bitcoin in the long run”, implying that it could reach $ 146,000. The target price, they wrote, is "unsustainable" for this year.
Responding to this prediction, Pompliano asked why analysts were “being so conservative” and noted that he believes the flagship cryptocurrency is “at least 10 times better than gold in every way” and, as such, whether BTC's market capitalization exceeds that of gold twice, the cryptocurrency would reach $ 1 million per currency.
“Bitcoin is 10 times better than gold. One day we will see a Bitcoin price of $ 1 million, which is only 2x the market value of gold. Everyone is underestimating the potential of Bitcoin. I explain with @MelissaLeeCNBC AND @CNBCFastMoney”, He tweeted.
Pompliano admitted that these numbers “kind of shock people”, but said that “we have to remember that both gold and bitcoin are solid monetary principles”. Gold is, however, the “analogue of the solid money principles”, while bitcoin is the “digital application” of the solid money principles.
According to him, there is no digital product that has replaced an analog product and has not become bigger than it. The question, he said, is "how much bigger will it be." It is worth noting that bitcoin is not only functioning as a substitute for gold, but also as a substitute for money by companies looking to hedge against potential currency inflation and devaluation.
Each company, both in the United States and outside the United States, will put bitcoin in its treasure. They will have to do it. We are seeing central banks around the world clogging the liquidity economy and people running around asking, 'How do I protect purchasing power'?
In his words, companies that buy bitcoin in the near future will create a "demand wall". At the moment, only Wall Street institutions are appearing, he said. As bitcoiners are not selling, there is an imbalance between supply and demand that has led to BTC price increases, Pomp concluded.
Bitcoin is currently trading above $ 41,000 in a new historic record. The price of the market-leading cryptocurrency apparently has not stopped rising after it surpassed the $ 20,000 mark last year.
Pompliano warned, however, that there will be volatility over time, and drops of 25% to 30% are expected, which may be rapid or prolonged. To say that BTC will have a market value equal to that of gold, he said, is to be "overly conservative" and could happen until 2030.
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