Anthony Pompliano says get ready for the bitcoin halving and price escalation to $100k

0
14




The bitcoin halving that is set to take place in May will be like “rocket fuel” for an already bullish asset, this according to Anthony Pompliano, host of The Pomp Podcast.

Bitcoin halving is the process of cutting the supply of new bitcoins by half, which occurs every 210,000 blocks. Pompliano likened this process to gold miners cutting their supply by half.

“In 2009, 2010, and into 2011, 50% of the gold miners basically shut off their operations, so 50% of the incoming daily supply just disappeared. It took a scare asset and made it scarcer right at a time when all the investors are running to it and the value of gold would have gone higher,” Pompliano told Kitco News.

Gold prices initially fell in 2008 when the recession first hit, then rose to all-time highs in 2011.

The same thing is likely to happen to bitcoin, he said.

“Everyone is going to be looking for inflation-hedge assets like bitcoin or gold. As they do that, you’re going to get the bitcoin halving, 50% of the daily incoming supply gets taken away, and so you’re taking a scare asset and making it scarcer right at the moment that everyone wants it in their portfolio,” he said.

While gold has upside potential in a deflationary environment, such as this, bitcoin’s upside is higher, Pompliano said.

“[Gold is] very stable, it’s done the job that a lot of people want it to do, but that volatility works in its favor in times of market drawdowns, but it works against it in times of market recovery, meaning you just don’t get a lot of volatility in gold,” he said.

While quantitative easing may push gold prices towards the $2,000 to $2,500 range, that gain is still not a very material increase in value compared to bitcoin’s potential, he added.

“Over the next two years, I think that it will have hundreds of percent of appreciation, given the quantitative easing and the volatility it brings,” Pompliano said. “My personal view is that we’ll see bitcoin hit $100,000 before December, 2021.”



Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.



Source Website

Leave a Reply

avatar
  Subscribe  
Notify of