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Bitcoin [BTC] is “up there with Mastercard” in terms of a value perspective, says Pompliano

Anirudh VK



Bitcoin [BTC] is "up there with Mastercard" in terms of a value perspective, says Pompliano
Source: Unsplash

The bear’s attacks have left Bitcoin [BTC] gasping for air barely above the $4000 mark. However, many experts in the field expect the price to correct further, owing to the fundamentals of Bitcoin’s market cycle. One of them is Anthony Pompliano, the founder of Morgan Creek Digital, who recently appeared on CNN to speak about the price performance of Bitcoin.

He began by saying that there was a lot of focus on the price by many individuals in the space, emphasizing that the important thing was to remember that the “fundamentals haven’t changed”. This was backed up by Pompliano, as he referred to the technicals and historical analysis to predict that the bear market was going to get deeper.

Stating that this has been seen in the past, he set his price call for around $3000-$3500 for Bitcoin, adding that it shouldn’t come as a surprise if that occurs. However, he also stated that the price movement does not change the historical or long-term outlooks. He went on to state:

“We have very deep conviction on a long term basis. And if you look at the fundamentals, on a 24 hour basis on the Bitcoin networks, that’s about $4.6 billion as of lately. The market cap is $74 billion so that’s a 16x multiple in transaction volume for market cap. That’s very similar to Mastercard that does about $11 billion worth of transactions and is valued at about $180 bn. From a value perspective it’s up there with Mastercard.”

Pompliano did mention that Bitcoin was a nascent technology, as it is only 10 years old. Notwithstanding this, over these last 10 years, Bitcoin has outperformed stocks, bonds, currencies, and commodities, he stated. He went on to say:

“We tend to think that the public equity outlook over the next 10 years is bleak, anywhere between -3% and -3% but we think cryptos can have multiples of that. We have that long term outlook based on positive sentiment.”

He further stated that there was a multitude of ways to value cryptocurrencies, with his firm looking at transaction volume mainly. This translates to the volume of activity on the network, as evidenced by his comparison to Mastercard. Moreover, he pointed out that the price movement is driven majorly by retail investors, with institutional investors not entering the market prior to the bull run of 2017. However, he painted a positive picture for the future of the cryptocurrency market, stating:

“We tend to think that the work today is going to lay the groundwork for price movement moving forward over the next 2-3 years until we see the Fidelty’s and Bakkts coming into the space. We tend to think that that’s really strong fundamental movement or foundation building that will pay off in the next 2-3 years.”

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Anirudh VK is a full-time journalist at AMBCrypto. He has a passion for writing and interest towards the future of blockchain technology and cryptocurrencies. He does not own any cryptocurrencies currently.


Bitcoin [BTC]: Debating on king coin’s transaction speed is a red herring argument, says Charlie Shrem

Akash Anand



Bitcoin [BTC]: 'Debating about BTC's transaction speed is a red herring arugument', claims Charlie Shrem
Source: Pixabay

The debate around Bitcoin [BTC] and its effectiveness in the current financial atmosphere has been a long ensuing debate in the cryptocurrency industry. The supporters and naysayers of the world’s largest cryptocurrency have locked horns on various aspects of the coin, be it the coin’s characteristic as a store of value or the amount of time it takes to settle Bitcoin transactions.

In a recent tweet, Charlie Shrem, the Founder of and one of the most popular Bitcoin proponents, spoke about the topic, directly addressing critics who had a problem with settlement times. His tweet read:

““Transaction speeds” when debating #bitcoin vs other faux-crypto’s is red herring argument. There were plenty of fast ways to move money before bitcoin. That’s not why we’re here. We’re building a censorship resistant value network that can-never be controlled by a single party.”

Bitcoin proponents had always made it a point that the cryptocurrency was never meant for fast transactions, but rather to compete with Gold as the standard for a ‘store of value’. Even Samson Mow, the CSO at Blockstream had earlier claimed that BTC was never meant to be fast by adding:

“If you want money, it does not need to be very fancy, and a lot of the altcoin projects; I don’t wanna go into it but they are just based on gimmicks. What you really want is sound money, something which is reliable and bulletproof.”

The ‘BTC is not effective’ camp had responded voraciously many a time by stating that something aimed at changing the financial dynamic should be nothing short of fast or else there was no way it could become an effective form of value. This rebuttal for this argument was that Bitcoin’s goal was to create a cryptocurrency integrated mainstream structure and even though it was not lightning fast, the transaction speed of Bitcoin was still faster than that of current methods like Visa and MasterCard.

Charlie Shrem was also in the news recently when he stated that when Mt Gox imploded, the market created the first “token as debt”. The statement was made in connection with the massive loss of funds which occurred following the hack of the then largest cryptocurrency exchange.

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