The popular podcaster and cryptocurrency investor, Anthony “Pomp” Pompliano made some declarations on CNN recently. He talked about the bear market and how he calculates the value of bitcoin. Pompliano stated that while the prices are still down, people are still making bitcoin transactions. He is positive about Bitcoin prices in the long run.
Pompliano Makes A Case for Bitcoin
Anthony “Pomp” Pompliano is no cryptocurrency newbie. Being in cryptocurrencies for a long time, he knows bear markets. And also knows about the good bullish days of last December, when bitcoin reached $20K. So that is why his opinion is a really valuable one.
Pompliano had an interview on CNN earlier this week. The people from the news outlet CNN asked some questions about this bear market. Pompliano stood its ground declaring that these bear markets are normal to some extent. He stated:
“A lot of people is focused on price. It is important to remember fundamentals haven’t changed. These bear markets continue to get deeper”
Pompliano compared the value of the bitcoin network with the value of Mastercard. He did this by comparing the percentage of the value that each network transacts daily vs the value of each company. He stated:
Bitcoin network is about $4.6 billion as of lately, and the market cap is $74 billion.That’s very similar to Mastercard which does about $11 billion worth of transactions and is valued at about $180 billion. So from a value perspective, it’s right there on par with Mastercard.”
Pompliano also stood its ground when asked about the price declaring that even with this huge drop, bitcoin is still a stellar asset, beating all sort of different assets classes in its first 10 years. Cryptocurrencies also offer a high level of volatility, a thing that is good from an investor perspective, bud bad from an adoption standpoint.
Only Retail Investors
Pompliano also remarked that this whole movement of money was almost spontaneous. This is the result of the job of retail investors only. Institutional investors did not do too much due to the nascent nature of the tech. But he trusts in the growth of bitcoin and in the work done today.
Maybe institutions will follow suit next year. Heavy hitters like Bakkt and also like Fidelity will pave the way for institutions. The only thing that is still missing is clarification on the legal issues of cryptocurrencies. But the institutions are already focused on that matter. lawmakers are aware of this need, but it is unlikely when they will deliver.