Anthony Pomploiano (aka “Pomp), a co-founder of crypto-focused asset management firm Morgan Creek Digital Assets and a well-known BTC bull, revealed he believes the price of bitcoin will one day hit $1 million per coin.
Speaking to CNBC’s Melissa Lee on “Fast Money,” Pompliano was asked about the recent price prediction JPMorgan analysts led by Nikolaos Panigirtzoglou wrote in a note to clients, that over the long term the price of BTC could get to $146,000 and higher.
Panigirtzoglou and his team wrote that a crowding out of gold as an alternative currency implies a “big upside for Bitcoin over the long term,” implying it could go to $146,000 and more theoretically and over the long-term. The price target, they wrote, is “unsustainable” for this year.
Responding to that prediction, Pompliano asked why the analysts were “being so conservative,” and noted he believes the flagship cryptocurrency is “at least 10x better than gold in every way,” and as such if the market capitalization of BTC even surpasses that of gold by two times, the cryptocurrency would hit $1 million per coin.
Pompliano conceded these numbers “kind of shock people,” but said we “have to remember both gold and bitcoin are sound money principles.” Gold is, however, the “analog of sound money principles” while bitcoin is the “digital application” of sound money principles.
Per his words, there is no digital product that replaced an analog product and failed to become bigger than it. The question, he said, is “how much bigger is it going to be.” Bitcoin, it’s worth noting, isn’t just working as a replacement for gold, but is also being used as a replacement for cash by corporations looking to hedge against potential inflation and currency debasement.
Every single corporation, both in the United States and outside the U.S. is going to put bitcoin into their treasury. They’re going to have to. We are watching central banks around the world stuff the economy with liquidity, and people are running around saying: ‘how do I protect the purchasing power’?
Per his words, corporations buying BTC in the near future are going to create a “wall of demand” that people aren’t accounting for. Right now, only Wall Street institutions are showing up, he said. As bitcoiners aren’t selling, he said, there’s an imbalance between supply and demand that’s led to BTC’s price rise.
Bitcoin is, at press time, trading above $41,000 at a new all-time high. The flagship cryptocurrency’s price has seemingly not stopped rising after it broke through the $20,000 mark late last year. CryptoCompare data shows that, in the last 24 hours, it’s up 8.44%.
Pompliano cautioned, however, there will be volatility over time, and drops of 25% to 30% are expected, and can either be rapid or prolonged. Saying BTC will have a market cap equal to that of gold, he said, is being “overly conservative” and could happen by 2030.
Featured image via Pixabay.