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Morgan Creek founder says BTC bottom is in, demand will drive price further

Updated: Aug 31, 2024
Published: May 16, 2019
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News came out on social media platforms about Shark Tank’s Kevin O’Leary calling Bitcoin “garbage” on CNBC as the asset was reaching $8,000. Anthony “Pomp” Pompliano, the founder of Morgan Creek Digital Assets and prominent figure in the crypto space, was able to challenge the shark’s view in under 10 minutes.

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Pomp speculates that the bottom of this bear market has been met as the volume is currently very high and interest from institutions is on the rise. A possible catalyst to the recent parabolic rise could be the “Twitter” trade war happening between the US and China according to him, as non-sovereign currencies may offer some kind of safety when compared to traditional ones at the moment. He continues further to explain that Bitcoin is a very scarce asset, and its scarcity is about to increase next year with the halving. The halving happens every 4 years during which the amount that can be mined every 10 minutes, currently at 12.5BTC/10mins, is halved.

 O’Leary clarifies that he fails to see Bitcoin’s intrinsic value as it is intangible, to which Pomp replies with a comparison to the US dollar. The American currency is the only one that is no longer backed by physical gold since 1971 and gets its value from “trust” ever-since. Similarly, Bitcoin’s value is determined by supply and demand, by what the market believes its fair value should be, the only difference is it cannot be printed by a certain organization when convenient.

You can watch the interview here:

https://www.youtube.com/watch?v=SmjUvdJdlDM

Image licensed via Shutterstock

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