It is slowly becoming an impossible year to keep your eyes off from. Not only has Bitcoin and its family of cryptocurrencies outperformed most traditional stocks and assets, but today everyone from a small-time trader to the President of the United States, is tweeting about the digital asset.
Speaking about the President of the United States, Donald Trump made headlines recently after he tweeted that he wasn’t a fan of Bitcoin.
Trump said that Bitcoin and other cryptocurrencies only satisfy illegal activities in the market, while also claiming that Facebook’s Libra will find it difficult to stay on its feet without the characteristic of “dependability.” Following his comment, many were quick to defend the crypto-ecosystem, with the likes of Jesse Powell, CEO of Kraken, and Justin Sun, CEO of Tron, entering the conversation.
Anthony Pompliano, Founder of Morgan Creek Digital and major Bitcoin proponent, appeared on CNBC’s Squawk Box segment to discuss these comments and its impact on the market.
During the discussion, Joe Kernen, host of Squawk Box, stated that he actually agreed with Donald Trump on his argument against Libra’s cryptocurrency. Pompliano opined that Bitcoin’s biggest advantage over Libra was that it did not have an outright chairman or controller. According to him, Bitcoin’s decentralized nature is what made it highly “compelling” to its users.
Kernen also raised the topic of regulation in the segment and questioned how crypto-assets could be regulated in the market. Pompliano responded,
“There’s two components right, where you can regulate the ownership so they could ban the outright ownership of Bitcoin. They could say that it’s illegal for financial institutions to support crypto companies so it kinda cut off the dependency on the legacy financial system. But you can’t change the monetary policy. You can’t change the algorithm that governs the asset unless you have over 51% people agreeing to change which is never gonna happen.”
Pompliano also claimed that since Bitcoin had come such a long way, it is almost too ‘big to fail’ in the market today.
Finally, the Founder of Morgan Creek Digital stated that it was a huge accomplishment for Bitcoin to receive validation from the Federal Reserves Chairman, Jerome Powell. The Chair had spoken of Bitcoin as an alternative store of value to gold, at a recent U.S Congressional hearing.