Bitcoin [BTC]’s increase in popularity has been quite evident with prominent personalities in government as well mainstream institutions taking a keen interest in its use cases and downsides. In his latest blog post, Anthony Pompliano, the founder and CEO of Morgan Creek Digital Capital, stated that ‘banning bitcoin will drive more adoption’.
Pompliano made this claim in connection with Congressman Brad Sherman’s recent call to outlaw cryptocurrencies in the United States. The Morgan Creek official stated:
“He believes that the purpose of these digital currencies “is to solely aid in the disempowerment of the United States and the rule of law.” These comments were part of a broader statement made while trying to “look for colleagues to join me [him] in introducing a bill to outlaw cryptocurrencies…purchases by American citizens so we nip this in the bud.”
According to the Bitcoin bull, the reason why politicians are attacking the crypto-ecosystem is that they would lose a considerable amount of power if there was an asset that challenged the existing dollar. He also added that the entire process of implementing a blanket ban on cryptocurrencies would not work because the “laws would be nearly impossible to enforce”.
Pompliano added that the comments from politicians were actually hurting the market as a whole at a time when even Facebook was jumping on the cryptocurrency bandwagon. He said,
“If Congressman Sherman is upset that Bitcoin could hurt the prospects of the US dollar, wait until he finds out that Facebook has the possibility of becoming a digital central bank to 2+ billion people around the world. Simply, the genie is out of the bottle and fiat currencies backed by sovereign nations are in deep trouble.
The Morgan Creek CEO further opined that adding Bitcoin to the country’s roster would not disrupt the dollar, at least in the next 10 to 15 years. He stated that there were other reasons why the dollar would be weakened, including China or Russia getting into Bitcoin and other cryptocurrencies.
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Bitcoin will likely be valued at $100,000 with a market cap of over $2 trillion before the end of 2021
The entire cryptocurrency market seems to be on the brighter side of the market since the beginning of the year. A majority of the coins have recorded significant recoveries from their 2018 slump, a period during which most coins lost over 90 percent of their value, when compared to their all-time highs. Among all the coins in the market, Bitcoin [BTC] aka the digital gold, was noted to be making a massive comeback as the coin breached the $11,000 mark after nearly 15 months. The coin however, soon retracted to settle below the $11,000 level.
According to CoinMarketCap, at press time, Bitcoin was trading at $10,887.27 with a market cap of $93.549 billion. The coin recorded a 24-hour trading volume of $20.757 billion for the past 24 hours and saw a massive rise of over 17 percent over the past seven days.
Anthony Pompliano, Co-founder of Morgan Creek Digital Assets, predicted that the largest digital currency could rise to reach $100,000, before the end of 2021. Pomp added that he was around 70-75 percent confident in this prediction. He stated,
“As I have previously said, making predictions is difficult […] Part of my process as a professional money manager is forming a thesis (price target), identifying a timeline (date), and establishing a confidence level. And then constantly re-evaluating those three aspects of my thought process as I receive new information.”
Pomp however, listed six pointers that have to be understood beforehand. First, this prediction is not an investment advice, and people should do their own research before investing in the digital currency. The second is with respect to Bitcoin’s volatility, with Pomp remarking that since it was a highly volatile market, the coin could witness a significant fall before being valued at $100,000. He stated,
“I anticipate that there will be numerous 20-30% drawdowns from new all-time highs as the asset continues to appreciate in value. These mini-boom/bust cycles should not cause panic, but rather need to be understood as natural market dynamics whenever an asset gains significant value in short periods of time.”
Further, the partner of the investment firm stated that the rise would be driven by several catalysts. This includes institutional adoption, exchange-traded funds and retail product approvals, global instability, governments all across the globe manipulating currencies, markets and economy. He went on to state,
“The market cap of Bitcoin will reach $2+ trillion when Bitcoin is worth $100,000. This is less than 1/3 the market cap of gold and less than 1/40 the global money supply.”
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