Over the next 15 months, Bitcoin (BTC) will be able to take off in 15-20 times its price, predicts Anthony Pompliano, representing the Morgan Creek Foundation. The businessman has made similar predictions in the past. And he did not rule out that BTC would be able to outperform even gold by capitalisation.
Late this week, Pompliano sent a letter to investors, in which he emphasised that in the long term the trend towards stronger Bitcoin is still dominant. Despite periodic kickbacks, the fundamentals of the cryptovoltaic currency continue to improve.
Co-Founder Morgan Creek encouraged investors to invest between 1% and 10% of their capital in the bitcoin and reminded them that half of their portfolio has already been invested in the largest digital currency.
Pompliano pointed to a key factor that he believes is creating the conditions for BTC to grow in value. This is the monetary policy of the US Federal Reserve. The regulator lowered the discount rate to stimulate lending against the backdrop of the coronavirus pandemic.
In parallel, the Federal Reserve launched a business incentive programme and turned on the printing press. The money supply issue is inevitably triggering an inflation spike. In this situation, demand for gold and bitcoin, which are not dependent on central banks, will increase.
Pompliano also added that many companies are already investing in crypt currency. For example, MicroStrategy has invested over 80% of its capital in bitcoin. Another company, Square, recently announced that it has invested $50 million in digital currency.