Bitcoin is up there with Mastercard from a value perspective: Anthony Pompliano
The recent Bitcoin [BTC] price plunge has caused concerns within the crypto community, with some doubting the future of the currency. Currently, the top cryptocurrency is valued at a little over $4,300. Most crypto experts believe that the coin will eventually enter bullish territory. Recently Anthony Pompliano, founder of Morgan Creek Digital, also joined the list.
Pompliano, recently shared his view on Bitcoin’s price in a chat with CNN. According to him, BTC might fall to $3,000-$3,500 and it shouldn’t come as a surprise if this happens. However, he said that the price movement does not change the historical or long-term outlook for the digital asset. He added that one should look at the fundamentals – the 24-hour transaction volume on the Bitcoin network is around $4.6 billion lately and its market cap is a little over $74 billion.
“So that’s about a 16-times multiple of transaction volume for market cap. That’s very similar to Mastercard which does about $11 billion worth of transactions and is valued at about $180 billion. So from a value perspective, it’s right there on par with Mastercard,” he explained.
He also pointed out that Bitcoin is only 10 years old and since its creation, it has been the best asset since it has outperformed currencies, stocks, bonds and commodities. “We tend to think that the public equity outlook over the next 10 years is bleak, anywhere between -3% and -3% but we think cryptos can have multiples of that. We have that long term outlook based on positive sentiment,” he stated.
He added that there were a number of ways to value cryptocurrencies and his firm mainly focuses on transaction volumes. He also pointed out that the bearish price movement has been driven largely by retail investors.
“I think that all of this has been driven by retail investors. There’s been very few institutional investors in the space pre-2018. And we tend to think that the work done today is going to lay the groundwork for the price movements moving forward over the next two to three years,” he opined.
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