Morgan Creek CEO, Anthony Pompliano: “Why Bitcoin (BTC) Will Reach $100,000 USD by 2021”
Pomp it! The versatile cryptocurrency enthusiast spoke to Yahoo Finance on reasons why the price of Bitcoin will eclipse $100K USD in the coming years including the global political and economic instability and the demand-supply economics of the cryptocurrency.
The cryptocurrency market is bleeding heavily as Bitcoin (BTC) registers a double-digit loss in 24 hours for the first time in over 2 months. The pioneer cryptocurrency trades at $11,496 USD as at the time of writing, representing 11.04% loss in the past 24 hours leading to collapse in the market. Despite these conditions, Anthony Pompliano, co-founder and partner of Morgan Creek Digital, believes the top crypto will hit $100,000 USD by the end of 2021.
A bleeding market: BTC trades double digit percentage lows for the first time in 2 months (source: Coinmarketcap)
In an interview with Yahoo Finance, The Ticker, Pomp (as he is commonly known as) says investors should expect these volatile moments in price as it induces higher price movements. He said,
“It will remain volatile. If you think of how networks like these [Bitcoin] grow, they have these kind of mini booms and busts. So we will see a lot of parabolic moves upwards and significant 20 percent to 40 percent draw downs in price. We already saw one earlier this year.”
He continues saying,
“Volatility is necessarily not a bad thing. You need volatility for higher market appreciation.”
Why Bitcoin is set to reach $100,000 USD in 2021
Bitcoin faced a huge fall in price in 2018 as the market faced one of the largest bear momentum in its history losing over 80% of its value. BTC has withered the long crypto winter to trade around 40% lower than its all-time high price of $20,000 USD reached in 2017. Pomp believes this is the mark to watch as it will propel BTC to higher all-time highs.
The Morgan Creek founder lays his extremely bullish predictions as a product of three simple reasons – institutional investment, global political-economic instability and the supply economics of BTC.
Reason #1: Calibra wallet set to introduce hundreds of millions to crypto
“The most important part of the Facebook announcement is not Libra token, but Calibra,”
Pomp says. The huge announcement by the social media networking giant in June opened a huge discussion on cryptocurrencies in the past month. Regulatory authorities, traditional finance companies, and other interested parties are talking about blockchain technology and cryptocurrencies extensively.
On the question of Facebook’s latest announcement, Pomp believes the launch of Calibra wallet to the billions of customers is a bullish move for the hundreds of millions, if not billions, of users.
Source: Twitter/ Joshua Faier
He believes Calibra wallet will eventually add support to major cryptocurrencies allowing billions of users to transact, Bitcoin (BTC) over the network. He continues saying,
“So you can imagine something like your medical health records being tokenized and held in that wallet. I think it’s really important moment where we give hundreds of millions of people the capacity to hold crypto currencies.”
Reason #2: Supply-demand economics of Bitcoin
Most people understand that Bitcoin will have a fixed supply of 21 million BTC but not the implications of the figure. The coin currently has a circulating supply of 17 million BTC, of which about a quarter of the private keys have been lost, and the supply of BTC is expected to reduce even further after the 2020 halving.
“I think the important thing about Bitcoin is that it’s a fixed supply asset and the supply-demand economics apply, and so if there’s an increase in demand you will see the price rise.”
With the supply remaining at least fixed, and the block rewards halved around May 2020, an increase in demand for the asset leads to a boost in
Anthony Pompliano tells Yahoo Finance: “Bitcoin to reach $100,000 USD in 2021” (Twitter/ Yahoo Finance)
Reason #3: Geopolitical pressures
Anthony further touched on the use of Bitcoin as a safe haven asset as geopolitical tensions rise across the world. The China-US trade war is currently at a standstill after several tariff increases in the billions of dollars trades between the two countries. Furthermore, the launch of Libra may push China towards building their own decentralized cryptocurrency to challenge the US-related token. He said,
“China is accelerating those plans in response to Libra. They are very worried about Libra being very US-dominated or regulated by the US, they feel like the digital currency would give the US an advantage over China.”
The price of Bitcoin is currently experiencing one of the various pitfalls Pomp expects along the way to reach $100,000 USD by 2021. But first, watch out for the $20,000 USD mark!