Bitcoin is a Wealth Protection Asset for AI-Driven Future: Anthony Pompliano

2024-06-24 23:02:45

Ruholamin Haqshanas

Last updated:

June 25, 2024 03:02 EDT | 2 min read

Bitcoin will be the go-to asset for securing wealth generated by artificial intelligence (AI) in the coming decade, according to prominent Bitcoin advocate and venture capitalist Anthony Pompliano.

In an interview with CNBC on June 24, Pompliano, the founder of Pomp Investments, emphasized the role of Bitcoin in safeguarding the substantial wealth that AI is expected to create.

Pompliano dismissed the notion that AI has replaced Bitcoin and the broader cryptocurrency industry as the new tech trend.

Instead, he believes that the two technologies will complement each other over the next ten years.

Bitcoin to Serve as a Protective Measure for Preserving Wealth

He highlighted the potential for AI to significantly boost global GDP through enhanced productivity, with Bitcoin serving as a protective measure for preserving that wealth.

Pompliano urged observers not to focus on short-term fluctuations but to recognize the long-term potential of this combination.

“When you see these technologies coming together, an easy way to see the intersection is what money are these machines going to use?” Pompliano stated during the interview.

Bitcoin’s recent price performance has been met with negative sentiment, with the cryptocurrency hitting a seven-week low of $59,086 on June 23.

Factors contributing to this sentiment include the upcoming sale of $8.5 billion worth of Bitcoin by Mt. Gox to its creditors and net outflows of over $1 billion from spot Bitcoin exchange-traded funds in the past ten trading days.

Additionally, Bitcoin miners have been involved in significant sell-offs.

As a result, the Crypto Fear and Greed Index currently rates the market sentiment as “Neutral” with a score of 51 out of 100, a decline from last week’s “Greed” rating of 71 out of 100.

Pompliano, however, remains unfazed by the current 15% price drop.

He noted that market pullbacks of 30% or more are not uncommon during bull markets.

AI is going to create enormous amounts of wealth and #Bitcoin is going to protect that wealth.pic.twitter.com/f14bLLfJ5v

— Michael Saylor⚡️ (@saylor) June 24, 2024

He also highlighted historical patterns, such as sideways trading in the second and third quarters, particularly during halving years.

Pompliano expects another price rally to occur either in the last quarter of 2024 or the beginning of 2025, aligning with past trends observed during halving years.

Bitcoin Could Reach $1 Million by 2033

Last week, analysts at Bernstein said that Bitcoin has the potential to reach $1 million by 2033, with a projected cycle-high of $200,000 by 2025.

Bernstein’s price forecast for Bitcoin is driven by the unprecedented demand from spot ETFs and the limited supply of the cryptocurrency.

The analysts now estimate that Bitcoin could potentially reach $500,000 by 2029, with the 2025 estimate revised from $150,000.

A number of major corporate investors in Bitcoin, including Microstrategy, have already seen their profits skyrocket.

As per data aggregated by Saylortracker, at current market prices of around $67,000, MicroStrategy’s position now commands a total valuation exceeding $14.59 billion.

MicroStrategy’s successful Bitcoin strategy has also led to other public companies considering adding Bitcoin to their balance sheet.

Back in April, Metaplanet revealed its decision to incorporate Bitcoin into its treasury assets due to several factors.

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