The CEO of Morgan Creek Digital, Anthony Pompliano, has recently appeared on CNBC’s Squawk Box with crypto critic Kevin O’Leary, which criticized Bitcoin (BTC). O’Leary affirmed that the notion that BTC was so disruptive had
“an odor of bullshit”.
According to him, there was nothing but raw speculation in Bitcoin. He compared Bitcoin as storage or value to being like playing roulette in Las Vegas, meaning that they should not be used because you might just lose all your money if you are unlucky.
O’Leary compared Bitcoin to gold and affirmed that for over 2,000 years people are using it as an asset class. Bitcoin, however, was described by him as a digital game without any kind of intrinsic value.
Pompliano responded by affirming that it may take a while for someone to really understand the real depth of Bitcoin and really understand all the value that it has. According to him, institutional investors are slowly coming in right now exactly because they finally understood how powerful this asset is.
Retail investors, according to him, will follow the institutional ones this time and start investing in BTC again. He affirmed that Bitcoin is a form of money and that money is really only a belief system in which you trade value for value.
The only reason why we use the dollar today is that we actually believe that it has value and that two people using it belief in it. As people are starting to believe in Bitcoin, the volumes will go up and so will the price.
O’Leary talked about the risks again and affirmed that he saw his portfolio dive when he decided to buy BTC. He put $100 USD worth of BTC in a Coinbase wallet and affirmed that it is now worth only $30 USD. He bought into the idea of Bitcoin and got burned, which is probably why he is wary of Bitcoin now.
Pompliano attacked back by affirming that Bitcoin was the better bet because it was the asset which gained more value in the whole decade. No other asset was quite as successful as BTC, he affirmed, which outperformed even some big stocks like S&P.
He affirmed that, in case you look at the macro trend, Bitcoin has dropped around 80% three times so far but it is still the best performing asset. This is a powerful fact. Stocks like Amazon, which crashed as well, are also volatile. Volatility is normal around the whole market, but no other asset is as profitable as Bitcoin.
While he admitted that Bitcoin offers asymmetric returns, the truth is that the bull market has just started and it will probably last longer until it finally breaks up. Because of this, Bitcoin will finally overcome $20,000 USD soon in his opinion.
O’Leary remained unconvinced this time but he affirmed that he “loved” the optimistic opinions of Pompliano. He ended up affirming that BTC was crap. Pomp disagreed, but it is impossible to convince someone who does not want to be convinced at all.