Anthony Pompliano, a well-known entrepreneur, believes Bitcoin will remain the top cryptocurrency for the foreseeable future. He recently doubled down on this prediction during a CNBC interview, dismissing the old idea that blockchain technology itself is more important than Bitcoin.
Bitcoin’s Proven Track Record
Pompliano argued that the belief that blockchain would overshadow Bitcoin has been proven wrong. While acknowledging blockchain’s usefulness, he highlighted Bitcoin’s unique appeal as an asset people actively want to own. He sees the differing investor goals – some seeking yield, others the asset itself – as a major driver of market volatility. He pointed to Bitcoin’s continued growth since 2017 as evidence of its enduring strength.
The Rise of Bitcoin ETFs and Investor Choices
Pompliano noted a trend of large Bitcoin holders converting their holdings into Bitcoin ETFs (exchange-traded funds). He explained this shift by highlighting the security and accessibility offered by ETFs. Institutional custody and ETF regulations make them attractive to traditional investors who might not be comfortable directly holding Bitcoin.
Security and Self-Custody: A Balancing Act
The increased use of ETFs doesn’t mean everyone is abandoning self-custody. Pompliano acknowledged that many within the Bitcoin community will continue to prioritize holding their own private keys (“not your keys, not your coins”). He sees this as a practical versus ideological choice, similar to how some view the S&P 500 as a mainstream store of value while others prefer individual stock picking.
Volatility and Diversified Strategies
Pompliano cautioned that the current diverse investment landscape – encompassing ETFs, infrastructure investments, and direct Bitcoin holdings – could contribute to increased price volatility. He framed this as a trade-off: more investment options lead to greater price fluctuations. However, he also emphasized the significant opportunities this diverse market presents for different investment strategies.
