The Bitcoin price nearly tripled in 2019 compared the U.S. dollar starting the new bull cycle. And it is just the beginning according to the Morgan Geek Digital co-founder Anthony Pompliano.
Anthony Pompliano which is known as a strong advocate to bitcoin predicted that bitcoin price will hit $100,000 by the end of December 2021.
In an interview for CNN Pompiliano said:
“Whenever we get to a recessive period or kind of slowing growth, central banks have kind of two tools: They can cut interest rates, which they did yesterday, and they can print money (quantitative easing). And so, when they do both of those things, it usually takes anywhere between 6 to 18 months to feel the effect of those tools, and what it’s going to do is it’s going to coincide with the Bitcoin halving.”
Bitcoin halving is a process that is coded in the bitcoin protocol. Every 4 years the bitcoin emission is halved. This monetary policy makes bitcoin more scarce over time.
Initially, when bitcoin started in 2009 the number of Bitcoins was 50 every 10 minutes. The next year bitcoin emission will decrease from 12.5 to 6.25 per 10 minutes.
While Gold has been historically seen as a safe haven in times of financial crisis, Pomp points to some advantages Bitcoin has over Gold, saying for CNN:
“The difference is, between Bitcoin and gold, with Bitcoin, we know exactly how many is getting created, so 1,800 Bitcoin are going to be created today. The second thing is we know the total supply available, which is 21 million. So, it’s not: Hey I wonder how much is in the ground. We know exactly how much it is, and we can actually go and audit or verify the software code of the system.”
While many analysts made optimistic predictions about the bitcoin price in the future, this time the optimism is even more. It is important to note that Pompiliano also predicted in 2017 that Bitcoin will hit $100,000 by 2019.
Pantera Capital, Tetra Capital, and Delphi Digital have published insights that are quite bullish about the bitcoin price.
Pantera Capital CEO Dan Morehead said that bitcoin has a high probability to hit $42,000 before the end of 2019, and the data to make this prediction seem to be more optimistic than Pomps insights.
Bitcoin was also mentioned from president Trump on Twitter in an attempt to shill the U.S dollar and bash bitcoin, which was seen by the crypto community as a positive achievement for Bitcoin. Also, Facebooks’ Libra may benefit bitcoin bringing more awareness and mass adoption for cryptocurrencies. But maybe the most important thing lawmakers are starting to realize that Bitcoin is censorship resistant and they will not be able to ban Bitcoin in case they decide to pass such a law.