One unit of Bitcoin (BTC) equals 100,000 dollars by the end of the year 2021? This is the forecast that Anthony Pompliano claims today as BTC continues to surpass its historical high today with a price that has surpassed $23,000.
Anthony Pompliano, better known as "Pomp" is one of the most important figures in the crypto ecosystem.
And the "Pomp" as he is now called is not just anyone. Indeed, after working for tech giants like Facebook and Snapchat, he created an investment fund called "Morgan Creek Digital Assets". This investment fund allows institutional investors and "family offices" to access cryptoactives, especially Bitcoin.
What are the fundamentals that make it possible to tell Anthony Pompliano that Bitcoin will reach $100,000 by 2021?
According to him, there are many elements to explain the recent explosion in the price of Bitcoin: investors who are more educated on the subject of cryptomoney, a complicated economic situation, but also and above all many new players who are investing in Bitcoin. The focus for the year 2021 will be, according to him, institutional investors, that is to say, large companies and investment funds.
Indeed, these actors have enormous financial means with billions of dollars under management. Bitcoin offers them an opportunity to reduce the risk against central banks that use all their tools to feed the economy with trillions of dollars. This year the US created more than 20% of all dollars in circulation! On its side Bitcoin, as you know is limited, there will only be 21 million, not one more.
The current situation of the dollar, which has begun to devalue globally in the financial markets, could also certainly create a phenomenon of price inflation. This is a classic mechanism in the economy, if the value of the dollar decreases due to monetary policies such as the FED's Quantitative Easing, the prices of goods tend to increase in general. The forecast in the US is 2% inflation at the moment and investors are trying to get a return above this inflation rate so as not to lose value in their investments. Bitcoin appears to be a perfect way to limit the risk and seek returns that are no longer seen in the traditional markets.
Get educated, understand the fundamentals. Understand why its value is so important. Then build your strategy by building a portfolio and following a position called DCA (Dollar Cost Averaging) which allows you to smooth your investment over time to maximize your returns over the long term! Pomp, for his part, has chosen BTC for 50% of the value of his portfolio and is more than confident about the future.
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