Bitcoin Bull Puts Money Where His Mouth is, Holds 50% of Wealth in BTC
For a while now, Anthony Pompliano has been a leading champion of Bitcoin (BTC). Best known as “Pomp”, the Facebook staffer-turned-crypto investor and media tycoon has garnered over 100,000 followers on Twitter while lauding BTC.
Case in point, his catchy quips, “Long Bitcoin, Short the Bankers” and “Bitcoin is never down”, have become industry favorites, and his incessant use of the rocketship and fire emojis have become a running joke in the community.
But, some have been left wondering, how bullish is the investor on the leading cryptocurrency?
According to interviews with CoinTelegraph and Ran NeuNer’s CNBC Africa “Crypto Trader”, he’s quite, quite bullish.
All In on Bitcoin?
Speaking with trade publication CoinTelegraph, Pompliano, the co-founder of fund manager Morgan Creek’s cryptocurrency investment branch, claimed that 50% of his net worth is stored in Bitcoin.
It is currently unclear how much the industry guru is worth, but 50% of Pomp’s net worth likely isn’t a non-material, trivial sum.
As to why he is making such a bet, which traditional investment advisors would likely detest with a passion, Pompliano opined that having 100% exposure to the fiat system is a “really bad idea”. He continues that if fiat currencies hyperinflate or fall out of use, an investor stuck in that system will have “a lot of problems”.
What he seems to be referring to are the fears that currencies like the U.S. Dollar and the Euro are in a precarious territory as a result of risky fiscal policy. As reported by NewsBTC, the Federal Reserve recently revealed that it is leaning to cut rates again.
This, according to Travis Kling, is “brazenly bullish for a non-sovereign, hardcapped supply, global, immutable, decentralized digital store of value.” And by that, he obviously means Bitcoin. Because, such a stimulating policy is likely to force investors to look for safe havens.
So, in many respects, Pompliano’s thesis on Bitcoin is that it will act as a digital store of value, a digital gold so to speak.
While Pomp is confident that Bitcoin is a good hedge and is likely to appreciate massively against traditional assets, most crypto investors, even an industry research group, would likely cringe at a 50% Bitcoin allocation.
Case in point, the Pomp-backed American analysis group Delphi Digital released a report late last year in which it was claimed that an optimal allocation to BTC would be around 3% of one’s net worth. This was calculated through the use of the Sharpe Ratio, a popular ratio that can be used to allow investors to gauge the level of risk-to-return of their assets.