Within a recent ‘interview‘, renowned American capitalist and co-founder of Morgan Creek Digital Assets Anthony “Pomp” Pompliano explained his investment strategies & skepticism towards fiat currency.
When asked whether or not he thought that investing around 50% of his total money into the leading digital currency Bitcoin [BTC] was a risky move, Pompliano aforesaid that risk is relative for every individual; but, he incorporates a clear profile that he needs to undertake. Pompliano continued:
“I would form the argument that having 100% exposure to fiat currencies is an not a very good plan. Right? As if one among those fiat currencies that you simply have 100% of your wealth in either hyperinflates or fails, you’ve lots and lots of issues.”
Pompliano stressed the necessity for additional diversification, that leaves the question of what proportion one need to transfer from a fiat currency into a digital asset.
Bitcoin [BTC] is the foremost secure computing network within the work, in line with Pompliano, and “its defense-first approach really ends up in a good offense and drastically increases the chances that bitcoin can sooner or later be the global reserve currency of the world.” Explaining further, he added:
“For sure the nation state with the best military has always managed the global reserve currency. […] things that antecedently have allowed a nation-state to regulate the international reserve currency — military superiority, economic sanctions etc. — all the sudden are much less effective, and what I believe to occur is the country or the financial system that has the best defense actually in a position to dominate.”
Also earlier this week, Pompliano predicted the price of bitcoin to hit around $100k USD by the end of 2021, explaining that the essential principle behind his forecast was classic supply-demand economics, that remain valid for the innovative digital ‘asset‘ class.