The Pomp: The US needs to embrace Bitcoin

Entrepreneur and investor Anthony Pompliano spoke about Bitcoin’s price trajectory (BTC/USD) and its role in the US economy on CNBC’s SquawkBox.

Bitcoin is down almost 40% from its all-time high, achieved at the end of last year. How does the asset look for the average investor now? The host of SquawkBox drew Pompliano’s attention to the base price i.e. where a typical holder got in, and asked him what the basis for the average investor in Bitcoin is right now.

Realized price shows most people are in profit

The Pomp replied:

There’s something we call realized price, which looks at the last time Bitcoin changed hands. You can calculate each individual Bitcoin, what was the price, and you can get to a base holder price that’s around mid-20,000 dollars now. Most people are in profit [given the current price of Bitcoin].

Bitcoin is recovering, added a tenth to its value today

At the time of writing, Bitcoin was trading for $38,872.59 with a 24-hour trading volume of $36.4 billion. Bitcoin is up by more than 10% in the last 24 hours.

Bitcoin plummeted when Putin declared war on Ukraine yesterday morning, but began to recover when US President Biden announced economic sanctions against Russia.

Short-term holders are in loss

The Pomp added that short-term holders, not long-term holders, are the ones selling at a loss. When asked what he thought the price of Bitcoin would be 12 months from now, he replied:

Nobody knows. The bigger question is what the US will do with it. The US needs to embrace Bitcoin. It’s a national security issue.

His argument? Assuming the US dollar stops being the biggest global reserve currency, the next best thing is to be the largest holder of a censorship-resistant digital currency. 30% of the hash rate is in the US.

He added:  

We need to get very serious about what is our Bitcoin strategy as a nation state. Bitcoin is an American technology from an ethos standpoint. It’s about censorship resistance, it’s about free speech, it’s about self-sovereignty and individual rights.

About Anthony Pompliano

Anthony Pompliano has built and sold numerous companies, ran Product & Growth teams at Facebook, and manages a portfolio valued at more than $500 million in early-stage tech companies.

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