The Pomp Podcast - #1441 Anthony Pompliano | Bitcoin Is About To Hit $100,000!

Episode Date: November 21, 2024

Bitcoin is about to cross $100,000 and Anthony Pompliano explains why it will change the world. Topics include historical trends, reflexivity, why higher price means less risk, why companies are buying, use case, and where bitcoin is headed. ======================= Bitkey, built by the team behind Square and Cash App, makes bitcoin self-custody easy and secure. Compare prices across exchanges, send and receive bitcoin, and track your wallet—all in one app. Named a Time Best Invention of 2024, Bitkey’s three-key system replaces seed phrases for simplicity. Get it now for $99—$51 off. Order at Amazon, Best Buy, or bitkey.world. ======================= Pomp writes a daily letter to over 265,000+ investors about business, technology, and finance. He breaks down complex topics into easy-to-understand language while sharing opinions on various aspects of each industry. You can subscribe at https://pomp.substack.com/ ======================= View 10k+ open startup jobs: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://dreamstartupjob.com/⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Enroll in my Crypto Academy: https://www.thecryptoacademy.io/

What's up everyone? This is Anthony Pompliano. Many of you know me as Pomp. You're listening to the Pomp Podcast, which is my effort to find the most interesting people in the world and sit with them for hours while I ask questions in an effort to learn. So it would mean the world to me if you would subscribe to the show on your favorite audio platform, watch episodes on YouTube, and tell your friends and family about the podcast. My goal is to help millions learn from the world's most interesting people. So let's get into today's episode. Today's episode is brought to you by BitKey. They are the hardware wallet built for Bitcoin. They're made by the team behind Square and Cash App. BitKey makes securely managing your

Bitcoin absurdly simple. BitKey is integrated with partners like Cash App, Coinbase, Robinhood, and Blockchain.com, so you can easily compare prices across exchanges before you buy or sell. And their app works like the money apps you already use, because simplicity is the best form of security. Send, receive, and track your wallet value over time, all in one place. Time Magazine named BitKey one of the best inventions of 2024. Their simple three-key approach to self-custody replaces complex features like seed phrases that make traditional wallets hard to use and easy to lose. Give the gift of simplified self-custody to the Bitcoin person in your life.

And if that's you, get BitKey and sit back and relax while the sats stack. For a limited time, you can get BitKey for $99. That's $51 off the normal price. Get yours today online at Amazon, Best Buy, or BitKey.world. That's B-I-T-K-E-Y dot world. Go check out BitKey today and start securely managing your Bitcoin in an absurdly simple way. lot of attention. People can't comprehend the fact that a digital currency could be worth so many dollars. But more importantly than that, $100,000 signals the fact that Bitcoin is not going

anywhere. And so when it was smaller, a lot of large capital pools, big institutions, financial organizations, countries, sovereign wealth funds, etc. They saw Bitcoin, people would tell them to buy it. And they always would say the same thing. It's too risky and it's too small. I have a lot of money. If I want to make money, I got to put a lot of money to work. But when Bitcoin started to get larger, it became less risky. It's the only asset I know in finance. The larger that the price point is, the less risky it becomes. And now all of these big capital pools can start to allocate. So why did I say that the world is going to change? Well, Bitcoin is a reflexive asset. This idea of reflexivity is incredibly important. It means that as the price goes higher,

more capital will pour in, which will push the price higher. The fact that it is a reflexive asset means that it can accelerate at a very quick speed. Let's go back to 2020 and I'll show you what I mean. Bitcoin was trading around $10,000 in September of 2020. By March of 2021, about six months later, all of a sudden Bitcoin was then trading at $64,000. That's more than 600% increase in a short period of time. Why does that happen? Because when Bitcoin moves, the world pays attention. As it gets more attention, the news is talking about it. People from a word of mouth standpoint are telling their friends more capital pours in. It's a finite asset. And so that finite asset has to go up in price in order to accommodate everyone. It's not

like a stock, a stock that sees a lot more demand and starts trading higher. The company usually will issue more shares. They'll try to satisfy the demand and raise capital. No one can create more Bitcoin. And so a finite supply with more demand means the price has to go up. That's just Economics 101. Now, here's what's most interesting to me. Bitcoin already has had a terrific run over the last year. It's up 160%. Bitcoin is up 130% year to date. Compare the last year of Bitcoin at 160% to S&P 500. It's only up 30%. Bitcoin has destroyed the S&P and the stock market, but it doesn't feel like Bitcoin is at all-time highs. If you go and you look at Google search trends, they're up, but they're not up as much as they were in past bull markets. If you go and

you look at the news, they're talking about Bitcoin, but it isn't every single story like it has been in past bull markets. And so I believe that we still have a long way to go in this bull market, which means that when Bitcoin crosses this hundred thousand dollar threshold, the world is going to take notice. It is such an absurd number for a digital currency that you can't ignore it anymore. There's going to be financial advisors, large financial institutions, very big, big sovereign wealth funds and countries that all say, now I need to start doing this. On top of that, we have MicroStrategy, which just raised another $3 billion that they're going to start buying Bitcoin as well. They're literally buying it right now. And I think they're one of the contributors

that's pushing the Bitcoin price higher. And so anytime that you see an asset like Bitcoin going up this much, it always begs the question from the critics. Well, what is the actual use case of Bitcoin? That is where I think the Bitcoin community has done a poor job of communicating. We try to sit and defend Bitcoin as if it needs to be the next global reserve currency, or it needs to be used to buy a coffee in a coffee store. But instead, holding Bitcoin is the use case. There are eight plus billion people in the world that have their currency devalued thanks to their governments and their central banks. They have no way to protect their purchasing power unless they're going to go and spend enormous amounts of money, get mortgages and

bank approvals to buy real estate. Or maybe they have to go and sign up for brokerage accounts and get approvals to buy stocks. But instead, Bitcoin, it simply says, regardless of who you are, as long as you have an internet connection, you are allowed to buy this asset. You can store your economic value in it and it will protect you. It will protect you from the central banks devaluing your currency. It will protect you from losing your purchasing power. That idea was first embraced by individuals. Then we saw corporations and financial institutions, and now we are knocking on the door of countries. But everyone has the exact same problem. The fiat currencies in the world are going to be devalued. How do I know? The United States just crossed over $36 trillion

dollar national debt. We are adding about $10 billion per day. If you look at the last three months, we've added almost $900 billion to the national debt. These numbers are bonkers and there is no slowing down in the future. Instead, the national debt continues to grow to the sky and Bitcoin goes up at the same time. Bitcoin is calling the bluff of the politicians. It's telling us that the national debt is going up. They're going to have to devalue your currency and more more people want Bitcoin. And again, if we go back to the idea of a finite supply, there will only ever be 21 million. That signals that if you can go and you can buy half of a Bitcoin, one Bitcoin, two Bitcoin, three Bitcoin, it's likely to be much, much more valuable in the

future. There are many things that are said on the Internet. There's many conspiracies that go very quickly because information travels so fast these days. But one thing is turning out to be very true. The Bitcoiners were right. They have been calling out the devaluation of the currency. They've been calling out the national debt accelerating. They've been calling out the fact that a finite supply of a digital decentralized currency would be incredibly valuable in the future. The Bitcoiners don't get everything right, but this they got very right. And so this is how markets work. People who risk their capital to buy Bitcoin early, they are generating an economic return. More free markets are needed in our society. Bitcoin is simply the epitome of it.

And the more that we can see that these people risked not only their capital, but also reputation in many cases to go and buy Bitcoin early and then hold it, which is a very undervalued point. Imagine buying an asset at a couple hundred dollars and watching it go from a couple hundred to a couple thousand, back down to a couple hundred, then up to 10,000, then back down to a couple thousand, then up to 20,000, and then back down 80%. And continuing to do that over and over and over again through all these cycles until Bitcoin finally hits $100,000. And you never sold. That's the definition of diamond hands. And so many people will say that the Bitcoiners got lucky, but the Bitcoiners were right. And if Bitcoiners are still holding Bitcoin today at 100,000,

it means they held through all that volatility. I personally believe the buying is easy, but the selling is the hard part. And there's a lot of people who bought Bitcoin early and at some point along the journey, they stepped off the train. They said, I've had enough from a return standpoint. I don't think Bitcoin has much more to go from here. And they simply sold their Bitcoin to somebody else.

Those people are probably regretting it now. And so when we watch Bitcoin continue to rise, remember to be gracious in victory. There are plenty of people who don't yet know about Bitcoin. They don't understand how powerful the technology is, and they don't realize how important it will be for the societies moving forward. But instead of gloating, instead of dancing on graves, spend the time to educate them,

welcome them into the Bitcoin community. Somebody did that for you, and you should do that for them. Help more and more people learn about this technology because every single person in the world can benefit from it. And then as you see stories floating around, remember that Bitcoin has no executive team. It has no board of directors. It has no marketing campaigns. Instead, the only marketing of Bitcoin are the people, the holders.

And the joke in CrossFit is, how do you know someone does CrossFit? They'll tell you. The same thing is with Bitcoin. How do you know someone owns Bitcoin? They'll tell you. And so the more that people spread word of mouth, the more that people educate individuals one-to-one, there's a bottoms-up revolution. That is where Bitcoin continues to spread globally.

There are estimated to be hundreds of millions of holders today. I think that eventually there will be billions of people holding Bitcoin. We now have corporations that are all competing. There's MicroStrategy and MetaPlanet, similar scientific DeFi technologies, miners like Hut8, Riot, Marathon, and others. Every single one of those companies wants more Bitcoin on their balance sheet. Bitcoin is an asset, but Bitcoin is an idea. And that idea's time has come.

We are watching history. It has been incredible to be on this journey with all of you. I just continue to think how fortunate we are to be here right now in this moment. I have met hundreds, if not thousands of people over the last few years. These are everyday Americans or everyday citizens of the globe. They're not trying to take over. They simply want a better life for them and their families. And Bitcoin offered hope to every single one of them.

Some of them started off buying $10 a week. Others already had some money and bought much more. But every single one of them saw the same opportunity to take their economic value, to store it in a digital asset that was going to benefit as the dollar got devalued. To each one of you who did the work, congratulations. You not only did the work to learn,

but you also took the time to take action. There's a lot of people who said, I shoulda, I woulda, or I coulda. But the Bitcoiners, They're the ones who actually did it. And as Bitcoin crosses $100,000, not only is it a great milestone, but it's a signal that the Bitcoiners were right and the Bitcoiners understand we still have a long way to go. There are still billions of people in the world who don't understand the technology

and don't hold the asset. But my guess is that's going to change in the coming years and decades. What a beautiful ride. We are so fortunate. Be gracious in victory. and Bitcoin is now closing in on $100,000.