Anthony Pompliano, who is a co-founder of the digital asset management company Morgan Creek Digital, has provided investors and analysts with an explanation of his views on Bitcoin. He said that his opinion of it as a global hedge has strengthened over time. He added that Bitcoin has always been a big part of the conversation. As an expert on cryptocurrency and risky investments, he expressed an increasing strength in the idea that Bitcoin is a global hedge. He added that as more data is collected, the more it offers proof of his opinion.
It is worth noting that Bitcoin behaves differently when compared to a lot of other asset types. In the past, Pompliano has given interviews stating that Bitcoin is an asset that does not usually rise and fall when the rest of the cryptocurrency or stock markets rise or fall. It basically operates independently of anything else. He gave several examples of how the value of Bitcoin rose in times of insecurity, but the relationship of Bitcoin to global economics is not an inverse of the markets.
As the world of cryptocurrency becomes mature, its behaviors and trends change. Pompliano has added that the most important part of Bitcoin is the idea that it is not a correlated asset. While a stock market goes up or down, Bitcoin does not follow that trend. Nor does it follow an inverse trend, added Pompliano. His opinion has stayed the same for more than five years.
One example given by Pompliano was the movement of Bitcoin's value in May 2019. It moved in the opposite direction of the S & P 500 and in the opposite direction of gold. At the time, there were trade wars going on and other unstable situations in different markets around the world. Pompliano added that looking at that period of time provides evidence of Bitcoin as a global hedge. Investors can use it in order to diversify their money and add some protection that is not available in other investments. It is worth noting that Bitcoin is about 50 percent of Pompliano's investment portfolio.