Bitcoin is 'gold with wings': Anthony Pompliano explains why

Bitcoin (BTC-USD) has slumped from its height above $73,000, now sitting below $60,000 after four-straight days of losses. Several factors have caused cryptocurrencies to slide with potential turbulence ahead with the US presidential election.

Still, bitcoin is up over 114% compared to this time last year, begging the question to crypto investors, could it continue to grow or is another crypto winter ahead?

Professional Capital Management Founder and CEO Anthony Pompliano joins Market Domination Overtime to give insight into why he feels bullish on bitcoin.

"You can think of bitcoin as gold (GC=F) with wings. It gives you that same downside protection, that same kind of purchase power protection. But it also has the asymmetry of an asset that is compounding over that same time period, at about 62% compound annual growth rate for the last ten years." says Pompliano

Pompliano elaborates on why bitcoin ETFs have also been popular: "As we see those financial institutions, those corporations and kind of larger family offices want to allocate to the asset, the ETFs provide a really low cost, liquid way to do that. And so they're going to continue to buy now of course prices go up and down based on buyers and sellers. And so there's more sellers than buyers."

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

This post was written by Nicholas Jacobino

Video Transcript

I, I'm curious, Anthony when you're talking to friends and family and maybe they're curious about investing in Bitcoin.

What do you, and, and they're asking you why they should, what do you tell them, Anthony?

What's the reason?

Is it, is it for the trade store of value medium, you know, medium of exchange?

What, what's the reasoning?

Usually I just ask them, do you think the dollar is gonna be worth more or less in the future?

Uh Almost no one I've met thinks that the dollar is going to be stronger uh in the future from a purchasing power standpoint.

And so immediately they start to think, well, where can I go to get some sort of economic security for uh the hard earned wealth that I've been able to accumulate?

And you know, there's many assets that you can go buy, you can go buy gold, you can buy Bitcoin, you can buy real estate, you can buy stocks.

Um And so each person's situation is different, but I do think that there is uh a cohort of people and a growing cohort hundreds of millions of people around the world.

They want something that is a store of value that leverages sound money principles.

It's an asset that's outside of the uh legacy financial system.

No one can create more of it.

But also they don't want kind of the existing physical gold, which is simply kind of trading sideways, you know, gold just hit a new all time high, but it's only up 50% since 2012.

So you could think of Bitcoin as gold with wings.

It gives you that same downside protection, that same kind of purchase power protection.

But it also has the asymmetry of an asset that is compounding over that same time period at about 62% compound annual growth rate for the last 10 years.

Gold with wings.

I need that on a, on a T shirt, Anthony.

That's good.

Let me ask you this.

What about uh ETF adoption?

Just switching gears a bit here.

I'm curious to get your take on the launch.

Um You know, flows have actually been relatively strong, Anthony even when you see price declines.

What does that tell you?

Yeah, I mean, obviously uh people want access to this asset, you know, what's unique about Bitcoin is historically, technologies are adopted by uh kind of militaries first, then countries, then corporations and then individuals.

Bitcoin has been the reverse of that.

We have seen the individual adopt it first.

Eventually we got some corporations and financial institutions and the promises that we're eventually going to get uh you know, countries and, and militaries to participate as well.

Uh But I do think that right now as we see those financial institutions, those corporation uh and kind of larger family offices want to allocate to the asset.

The ETS provide a really low cost liquid way to do that.

And so they're going to continue to buy.

Now, of course, prices go up and down based on buyers and sellers.

And so there's more sellers than buyers.

But that doesn't mean uh that the folks who want the ETF are gonna, you know, go away.

It just means that there's more people selling than buying, um you know, and, and maybe they're selling in the spot market while uh these folks are going and buying the ETF S.