News came out on social media platforms about Shark Tank’s Kevin O’Leary calling Bitcoin “garbage” on CNBC as the asset was reaching $8,000. Anthony “Pomp” Pompliano, the founder of Morgan Creek Digital Assets and prominent figure in the crypto space, was able to challenge the shark’s view in under 10 minutes.
Pomp speculates that the bottom of this bear market has been met as the volume is currently very high and interest from institutions is on the rise. A possible catalyst to the recent parabolic rise could be the “Twitter” trade war happening between the US and China according to him, as non-sovereign currencies may offer some kind of safety when compared to traditional ones at the moment. He continues further to explain that Bitcoin is a very scarce asset, and its scarcity is about to increase next year with the halving. The halving happens every 4 years during which the amount that can be mined every 10 minutes, currently at 12.5BTC/10mins, is halved.
O’Leary clarifies that he fails to see Bitcoin’s intrinsic value as it is intangible, to which Pomp replies with a comparison to the US dollar. The American currency is the only one that is no longer backed by physical gold since 1971 and gets its value from “trust” ever-since. Similarly, Bitcoin’s value is determined by supply and demand, by what the market believes its fair value should be, the only difference is it cannot be printed by a certain organization when convenient.
You can watch the interview here:
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