- Bitcoin sets a new record high of $41,946.74
- Anthony Pompliano announces that Bitcoin is a 10x improvement on gold, notes that the potential of Bitcoin is still underestimated
- Pompliano Backs Bitcoin to be valued at $1 million in the future
Major crypto markets continue to ride on the back of the bull even after crossing the $1 trillion mark. The most recent surge saw the number one crypto set yet another all-time high of $41,946.74, the fifth in the opening week of 2021.
Bitcoin Is An Improvement on Gold
The reaction surrounding Bitcoin has generally been positive as the leading crypto continues to tame the bears. Following the recent trump of Bitcoin, Anthony Pomploiano (aka “Pomp), has declared Bitcoin a 10x improvement on Gold.
Bitcoin’s recent surge pushed it to become the 7th most valuable asset worldwide with an overall market valuation of around $780 billion (Jan. 8). Bitcoin had briefly displaced popular social media platform, Facebook, as the 7th biggest company ranked by market cap.
However, after dropping by about 5 percent in the last 48 hours, BTC is being swapped for $40,000 per unit with a market cap of $750 million. Bitcoin now sits one place behind Facebook which has a market cap of $759 billion and two places behind Tesla which holds approximately $804 billion.
On the Flipside
- In looking to regulate its crypto space, South Korea’s Ministry of Economy and Finance has announced a finalized legal amendment after-tax rules were revised in 2020.
- The Ministry said its new tax rules will begin in 2020 when cryptocurrency users will begin to face a 20 percent tax on profits over 50 million South Korean won (US$45,685).
- The tax rate will rise to 25 percent if the gains are over 300 million won ($273,950).
Future Prediction of Bitcoin
Speaking to CNBC’s Melissa Lee on Fast Money Anthony Pomploiano who is the co-founder of Morgan Creek Digital Assets and a well-known BTC bull, revealed he believes that one day, Bitcoin will be valued at $1 million per coin.
When asked on the show about a price prediction of analysts from JPMorgan led by Nikolaos Panigirtzoglou that BTC could one day trade at $146,000 Pomploiano replied by noting that analysts are “being so conservative” about the future of Bitcoin.
The Bitcoin bull stated that he believes that Bitcoin is “at least 10x better than gold in every way.” According to the investor, in the future, we may see a market capitalization from Bitcoin which even surpasses that of gold by two times.
He put his long term price prediction for the cryptocurrency around $1 million per coin. The reason he backs Bitcoin so strongly is that Gold is the analog store of value while Bitcoin represents the digital.
As the world continues its move from analog to digital, Bitcoin’s value would skyrocket. Pomploiano believes that by 2030, Bitcoin could rival gold in terms of market capitalization.
Regardless of his predictions, Pompliano cautioned investors that the volatility of Bitcoin will continue over time. He stated that after surges, there may be price drops of 25% to 30%. As in the past, these corrections can either be rapid or prolonged.