Anthony Pompliano Says Companies Holding Bitcoin Are Making A Bet Against 'Dollar's Ability To Store Value'
Entrepreneur and investor Anthony Pompliano ignited a discussion Monday on the potential of Bitcoin (CRYPTO: BTC) as a corporate reserve asset, deeming it the “contrarian” bet against the weakening U.S. dollar.
What Happened: During an interview with CNBC, Pompliano said that there should be “way more pressure” on the public companies that are leaving a large portion of shareholders’ economic value in dollars.
Pompliano said that the dollar has lost 30% of its purchasing power over the last five years. This was closer to the Bureau of Labor Statistics consumer price index, which estimated that today’s prices are 25% higher than the average prices in June 2020.
“It goes back to the fact that if you are running a company and you have shareholders, and your job is to protect the economic value of that business, are you better off holding dollars for the next ten years or putting it in Bitcoin?” he added.
From a Bitcoiner’s perspective, Pompliano argued, that companies are speculating on the dollar’s ability to store value, and that the idea of storing corporate assets in Bitcoin has now become a “contrarian trait.”
See Also: Bitcoin Could Go To $300,000 Before ‘Great Depression’ Crisis, Traders Argue
Why It Matters: Pompliano has been a vocal backer of Bitcoin. Last month, he launched a Bitcoin treasury company, ProCap BTC, LLC, which has already accumulated 4,932 BTC, worth $587 million at current prices.
The company is set to merge with Columbus Circle Capital I Corp. (NASDAQ:CCCM) as part of a special purpose acquisition deal and go public under the name ProCap Financial, Inc.
The firm seeks to emulate the Bitcoin investment strategy popularized by Michael Saylor’sStrategy Inc. (NASDAQ:MSTR), which is currently the world’s largest corporate holder of the leading cryptocurrency.
Price Action: At the time of writing, Bitcoin was exchanging hands at $118,744.62, down 0.46% in the last 24 hours, according to data from Benzinga Pro.
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