Pompliano’s belief in Bitcoin as a solid store of value has motivated him to store upwards of 50 percent of his wealth in the cryptocurrency as a long term investment. He went on to clarify that his personal portfolio is handled differently than at his investment firm Morgan Creek Digital, where risk management and profit taking are important aspects that need to be considered.

Pomp: Expect a Parabolic Bull Run Soon

Pompliano reiterated his Bitcoin prediction of $100,000 that he believes will be met by December 2021. In an earlier blog post, he said that the confidence level of his prediction is around 70 to 75 percent.

According to him, the jump in Bitcoin prices will come from a substantial bump in demand from a variety of sources, including institutional investors, multiple potential ETF announcements, retail awareness, global regulatory acceptance, and, finally, a lack of exciting returns in the equity space. Furthermore, Pompliano pointed out that central banks have manipulated economies and currencies to the point where Bitcoin seems to be the more attractive choice.

Another major price catalyst is the fact that Bitcoin’s supply is capped at a mere 21 million. While central banks can simply print more money in light of monetary policy changes, Bitcoin will become increasingly scarce over time. Of the 17.78 million BTC that has already been mined so far, a significant portion has been lost or misplaced.

Furthermore, starting in May 2020, the number of new Bitcoin mined every ten minutes will be halved, making the currency even more valuable. This event, called the ‘block reward halving’, takes place once every few years and has always caused the cryptocurrency’s price to shoot upwards. According to a report compiled by Grayscale Investments, the halving may spur another such bull run in the near future.

Bitcoin Market Cap to Top $2 Trillion?

Assuming Bitcoin does run up to $100,000, Pompliano is confident that the bull run will not come without a heavy dose of volatility. While the cryptocurrency will continually scale new heights, he estimates that the market will witness “numerous” 20 to 30 percent drawdowns from those record high prices. The overall trend, however, will be positive over the long term.

Pompliano, meanwhile, concluded his blog post with his bold prediction of $100,000. He noted, “The market cap of Bitcoin will reach $2+ trillion when Bitcoin is worth $100,000. This is less than 1/3 the market cap of gold and less than 1/40 the global money supply.” Bitcoin currently boasts a total valuation of $200 billion, while the cumulative cryptocurrency market cap sits at $343 billion.

Do you agree with Pompliano’s belief that Bitcoin and the overall cryptocurrency asset class is due for another major bull run in 2019 and 2020? Let us know your thoughts in the comments below. 

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