- Anthony Pompliano says Bitcoin becomes less risky as its value increases significantly.
- He suggests Trump’s pro-Bitcoin stance may drive a global digital currency competition.
- Growing regulatory clarity around Bitcoin could boost its acceptance by institutions and governments.
- Pompliano highlights Howard Lutnick’s fiscal ideas as a potential asset for the U.S. Treasury.
Bitcoin is making waves, and Anthony Pompliano believes its rise signals reduced risk for investors.
Speaking with Bloomberg, Pompliano explained key factors driving Bitcoin’s growing legitimacy and addressed potential future scenarios for the cryptocurrency. So, his insights reflect a pivotal moment for Bitcoin, especially as the U.S. gears up for leadership changes.
A Global Race for Bitcoin Investment
According to Pompliano, Bitcoin may rise to “low hundreds of thousands” in value, especially if the U.S. government initiates a Bitcoin strategic reserve. So, he suggests that President Trump’s expressed support for Bitcoin could spark a race for digital currency acquisition. Pompliano noted, “Other countries now have heard President Trump say that he’s going to go buy Bitcoin and they’re now coming out saying no, no, no, we’re going to beat you to it.”
Additionally, if Bitcoin continues its upward trajectory, Pompliano argues that its perceived risk diminishes rather than increases. “The higher the price goes, the less risky it gets,” he said. The larger Bitcoin’s market capitalization grows, currently nearing “$2 trillion,” the more substantial it becomes as an investment vehicle for major capital sources like sovereign wealth funds and central banks.
Regulatory Shift in Bitcoin’s Favor
Pompliano points to a growing regulatory clarity around Bitcoin and anticipates a friendlier environment. Although there has been “a big complaint” over the lack of clear regulations from agencies like the SEC and CFTC, Pompliano believes that is changing. So, he said, “The U.S. dollar is not regulated… it’s an inanimate object… Bitcoin’s the same way.” However, companies and individuals facilitating transactions would still face regulatory scrutiny.
Furthermore, Pompliano explains that Bitcoin’s decentralized nature provides it with a unique edge. “It’s not controlled by anyone… anyone in the world can buy it regardless of what the regulations are.” So, in his view, the main regulatory battles will involve centralized platforms and intermediaries rather than Bitcoin itself. Potentially leading to tailored rules for decentralized versus centralized assets.
Trump’s Pro-Bitcoin Stance
Pompliano views Trump as a force for Bitcoin, with the first “pro-Bitcoin president” openly supporting the currency. Trump’s campaign promises included a commitment to “protect Bitcoin” and ensure citizens’ rights to self-custody of their assets.
Pompliano sees this stance as a catalyst that’s already attracting corporations and institutions like Fidelity, BlackRock, and Franklin Templeton to the digital asset. So, he asserts, “Everyone is now saying it is time to go buy Bitcoin, and that is a global race.”
The Role of Howard Lutnick and Treasury Picks
Pompliano also weighed in on the possible appointment of Howard Lutnick as Treasury Secretary. According to him, Lutnick, who proposed leveraging the U.S. balance sheet for revenue generation, brings innovative ideas that could benefit the administration’s fiscal strategy. Pompliano praised Lutnick’s financial acumen and resilience, referencing his “powerful story” of leading Cantor Fitzgerald through 9/11. So, he suggested that such experience could be invaluable for handling the complexities of the Treasury. Especially with Bitcoin as a growing factor.
Similarly, Pompliano remains confident in Trump’s ability to pick a suitable candidate for Treasury. Stating that it’s worth taking time to ensure the “perfect pick.” So, he advised, “Let him take his time… this is going to be a really important role,” acknowledging the market’s interest in the position.
Conclusion
As Bitcoin edges toward becoming an accepted asset class among major financial players, Pompliano’s insights show the momentum it has gained and the challenges it faces. So, with global interest and regulatory shifts in its favor, the path to $100,000 is close, especially with the new administration’s support.
As of the time of writing Bitcoin price stands at $90,879. As for investors and institutions, the question now is not just if Bitcoin will continue to rise but how high it can go.
Pompliano status; Image source
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