Venture capitalist Anthony Pompliano, a strong advocate for Bitcoin (BTC), predicts that it will become the preferred asset to safeguard wealth generated from AI in the coming decade. He noted in an interview with CNBC on June 24 that as AI continues to create significant wealth, Bitcoin will serve as a protective measure for that wealth. Pompliano dismissed the notion that AI will replace Bitcoin and the broader cryptocurrency industry, instead suggesting that the two technologies will complement each other over the next 10 years.
Pompliano highlighted the potential for an increase in GDP due to AI productivity and the ability of Bitcoin to safeguard wealth. He believes that those who focus solely on daily or weekly fluctuations are overlooking the substantial long-term benefits of these technologies.
On June 23, Bitcoin hit a seven-week low of $59,086, largely due to negative sentiment stemming from M Gox preparing to sell $8.5 billion worth of Bitcoin to its creditors and significant Bitcoin exchange-traded fund outflows in the last 10 trading days. Additionally, Bitcoin miners have been selling off large amounts of the cryptocurrency. As a result, the Crypto Fear & Greed Index indicates a neutral market sentiment, with a score of 51 out of 100, a decline from the previous week’s score of 71 out of 100 in the “Greed” zone.
Despite the recent 15% price drop, Pompliano remains unfazed, citing historical precedents of 30% or more price pullbacks during bull markets. He explained that the second and third quarters typically trade sideways in halving years, as many investors follow the adage “invest in until May and go away.” However, Pompliano expects another price rally by the end of the year or the beginning of 2025, which aligns with historical trends in halving years.
In conclusion, Pompliano remains optimistic about Bitcoin’s future performance, even in the face of recent market challenges. He believes that it will continue to serve as a valuable asset alongside emerging technologies like AI.