Times are tough right now but Bitcoin will reach up to $20,000 in 2019, according to Anthony “Pomp” Pompliano, Founder and Partner at Morgan Creek Digital.
Went on @cnni to talk about why Bitcoin isn't dead.
Don't listen to the noise. Focus on the fundamentals. pic.twitter.com/hgwR7eyhND
— Pomp ? (@APompliano) November 23, 2018
“The important thing to remember is that the fundamentals haven’t changed,” he told CNN. “If you look at historical analysis, these bear markets tend to get deeper and deeper. We’ve had two of them recently and this one looks like it could go down to $3,350 but people shouldn’t be surprised if that happens, although it doesn’t change the long-term outlook.”
He added: “We have very deep conviction on a long-term basis. The 24 hour transaction volume on the Bitcoin network is around $4.6 billion and the market cap is about $74 billion. So that’s a 16 times multiple of transaction volume for market cap. That’s very similar to Mastercard which does $11 billion worth of transaction and is valued at $180 billion.”
It’s important to remember that this is still a nascent technology, he continued. It’s only ten years old but it has been the best performing asset during that time.
“It has beaten stocks, bonds, currencies and commodities and we think the public equity outlook over the next ten years is somewhat bleak, anywhere between -3% to +3%. But crypto specifically and the alternative space can add multiples of that, so that’s why we have a long-term positive outlook.”