Anthony Pompliano names what he thinks in his term as the biggest risk to Bitcoin (BTC).
Additionally, Anthony Pompliano is Crypto veteran and Morgan Creek Digital co-founder. Also, The Best Business Show recent episode has him talking on his hypothetical long-term bear case for bitcoin.
“Unlike what the Bitcoin proponents believe,..”
“…Bitcoin won’t cross over into becoming a currency and therefore,…”
“…that will drastically hamper the kind of addressable market.”
“The most it can grow to is gold, which is basically a store of value…”
“…[It] isn’t really used to go purchase things on a day-to-day basis and therefore,…”
“…yes there may be more upside, but it’s kind of a capped upside.”
More so, Pompliano goes further to note other few factors he believes will have undesirable effects on the growth of Bitcoin.
“The second one is eventually we’re gonna figure out who Satoshi is…”
“..and if we figure out who Satoshi is, that’s going be a bad person,…”
“…and we’re not gonna want to know who it is and like there’s gonna be a negative impact.” Pompliano continues
“The next thing is nobody’s using it for specific use cases like being able…”
“…to actually do cross-border payments, all stuff. It’s slow.”
“and expensive. It’s kind of all these like technical issues with it.”
“Then there’s an argument of the unknown like the government’s gonna clamp…”
“…down on it in the future. They’re going to regulate it. They’re going to tax it…”
“and going to shut it down. They’re going to outlaw it. They’re going to do all this stuff.”
However, in all these issues, Pompliano notes a singular risk that has the potential to undermine the integrity of the Bitcoin network.
Bitcoin Beyond Critics Control
“I think that best argument somebody could make and what I think is the biggest risk…”
“…to Bitcoin – it really pisses the critics off because it has nothing…”
“…to do with anything external.” Pompliano continues
“There’s still a development process. There is still an upgrade process to Bitcoin,…”
“…and it’s incredibly methodical, it’s incredibly intentional, it’s slow on purpose,…”
“Lots of kinds of filters and security checks, etcetera. But technically there could…”
“…be a bug in the code that’s introduced, like shooting yourself in the foot right.”
Convulsively, Pompliano still goes on to describe Bitcoin as an attractive asset class. Of course, this is despite all the factors as in discussion earlier.
“The reason why Bitcoin is so attractive is I actually don’t need to have the best returning asset…”
“…I don’t need to be greedy. I want the thing that has a great economic…”
“…return, but also I know it’s gonna be around in 50 years.” Pompliano concludes.
