Bitcoin to Secure Wealth Created by AI in the Coming Decade, Says Anthony Pompliano
Bitcoin will become the preferred asset for securing wealth generated by AI over the next decade, according to Bitcoin advocate and venture capitalist Anthony Pompliano.
AI and Bitcoin Synergy
“We are entering an automated world where AI will create enormous amounts of wealth, and Bitcoin will protect that wealth,” explained Pompliano, founder of Pomp Investments, in a recent CNBC interview. He dismissed the notion that AI has replaced Bitcoin and the broader cryptocurrency industry as the latest tech trend, suggesting instead that the two technologies will work in tandem over the next ten years.
Economic Growth and Wealth Protection
Pompliano highlighted the potential for AI to boost GDP through increased productivity, with Bitcoin serving as a means to safeguard the resulting wealth. “People who focus on short-term fluctuations are missing the broader trend that will drive the next decade,” he said. He emphasized the intersection of AI and Bitcoin, questioning what currency these automated systems will utilize.
Current Market Sentiment
On June 23, Bitcoin reached a seven-week low of $59,086. Negative sentiment stemmed from Mt. Gox preparing to sell $8.5 billion worth of Bitcoin to its creditors and spot Bitcoin exchange-traded fund outflows exceeding $1 billion over the last ten trading days. Additionally, there has been a significant selloff by Bitcoin miners.
The Crypto Fear and Greed Index has dropped to the “Neutral” zone with a score of 51 out of 100, down from the “Greed” zone score of 71 out of 100 just a week prior.
Pompliano’s Long-Term Perspective
Despite a recent 15% price decline, Pompliano remains unfazed, noting that price pullbacks of 30% or more are common in bull markets. He explained that the second and third quarters often see sideways trading, particularly in halving years, due to the market adage “sell in May and go away.”
Pompliano anticipates another price rally towards the end of 2024 or the start of 2025, consistent with historical trends in halving years.
