The American co-founder of Morgan Creek Digital Asserts, Anthony Pompliano, has revealed he holds 50% of his assets in Bitcoin. Supposedly, this investment decision stems from Pompliano’s distrust of fiat currency.
50% of Pompliano’s wealth is reportedly in the form of Bitcoin
This news came in a recent interview with Cointelegraph, published on the 5th of July. Specifically. Pompliano argues that this investment strategy diversifies his exposure to fiat currencies.
Nevertheless, Pompliano highlighted that putting around 50% of his wealth into the premier cryptocurrency Bitcoin is a relatively risky move. However, he went on to note that risk is relative for every individual – and that Pompliano himself has put a lot of thought into it.
“I would make the argument that having 100% exposure to fiat currencies is a really bad idea. Right? Because if one of those fiat currencies that you have 100% of your wealth in either hyperinflates or fails, you’ve got a lot of problems.”
As such, Pompliano noted that there’s a need to diversify one’s holdings. Consequently, that poses a question over how much of one’s assets one should convert from fiat currencies into some digital currency.
Is Pompliano putting his money where his mouth is?
Pompliano stressed that Bitcoin has the most secure computing network in the world. What’s more, Pompliano said that Bitcoin’s “defense-first approach actually leads to a great offense and drastically increases the probability that Bitcoin will one day be the global reserve currency of the world.”
Pompliano then continued to elaborate on the seismic changes a shift towards cryptocurrency can bring about.
“For sure the nation state with the greatest military has always controlled the global reserve currency. […] things that previously have allowed a nation-state to control the global reserve currency – military superiority, economic sanctions etc. – all the sudden are much less effective, and what I believe is going to occur is the country or the monetary system that has the greatest defense actually is in a position to dominate.”
This comes just days after Pompliano predicted that the price of Bitcoin could hit $100,000 by the end of 2021. At the time, Pompliano said that “classic supply-demand economics” lend credence to his prediction.
This If the price of Bitcoin indeed increases to $100,000 in two years, Pompliano’s investment strategy will likely pay off hugely. As such, the news that Pompliano has allocated around 50% of his holding to Bitcoin shows he is putting his money where his mouth is.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.