Cash is King in Coronavirus Ravaged Economy But Bitcoin is “Next in Line to the Throne”

Mark Yusko, the CEO at Morgan Creek Capital Management says coronavirus is unleashing a once in a lifetime downturn.

Yusko appeared on CNBC’s “Trading Nation” to talk about how the closest comparison to the coronavirus ravaged economy is the Great Depression. The hedge fund manager on Thursday,

“The economic shock wave that’s coming is going to be like nothing that any of us has ever experienced because it’s going to be very similar to the 1930s.”

Since hitting its all-time highs, S&P 500 has plunged 26% while the Dow is down 28% from its record high. In the first quarter of 2020, both the indexes recorded a negative 23% and 20% returns respectively.

The market is not expected to make a real recovery until the number of coronavirus infections and death peak. The COVID-19 pandemic has infected 1,040,664 people globally and 55,191 people have lost their lives to it.

Yusko is currently short on “a lot of stocks,” he is particularly bearish on retail, consumer stocks, and over-leveraged companies.

Move into Cash, Gold, and Bitcoin

According to Yusko, the market is not showing any signs of recovery and it’s not late to cut losses and go into cash in response to coronavirus.

“Cash is king,” said Yusko, who manages $1.7 billion in assets. “We’re in for a very drawn-out bear market.”

Besides cash, he finds gold miners as an attractive option. Interestingly, gold has beaten other assets by ending the Q1 with a positive 4% returns. Yusko also finds opportunity in Bitcoin, an asset that is part of his investment portfolio.

“Bitcoin is next in line to the throne,” added Yusko on Twitter.

The world’s leading cryptocurrency fell 50% from its mid-February high of $10,500 but since then has recovered 80% of its value as it currently trades at $6,700.

However, given that bitcoin hasn’t decoupled from the stock market yet, it could still be in for some pain as Yusko estimates the negative effect from the global economic shutdown to combat novel coronavirus won’t be limited to just weeks and months but quarters and years.

But quantitative easing by central banks all over the globe will work in Bitcoin’s favor which is “insurance against the collapse of the financial system.” Yusko said,

“The stimulus response from the government is going to have a negative impact on currencies globally, particularly western currencies. So, you want to have something that appreciates in value. Bitcoin is going to do that.”

Yusko is not alone in thinking this, much like the vast majority of the crypto community, Morgan Creek Capital founder Anthony Pompliano also sees central banks printing money to push the price of bitcoin higher by “hundreds of percent.”

Also, while central banks are focused on quantitative easing, bitcoin will go through “quantitative-hardening” next month that will cause miner flow to be halved from 1800 BTC per day to 900 BTC per day and the scarcity, the S2F to double to 54 years.

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Author: AnTy

Biticoin Bull Pompliano: Tokenizing USD Will Secure Currency’s Position as the “Global Reserve Currency” in the Future

The Co-Founder of Morgan Creek Digital and widely known as a “bitcoin bull”, Anthony Pompliano was recently involved in an interesting discussion with CNBC’s Squawk Box. As per Bitcoinist, the expert shared his opinions on what will allow Bitcoin to retain its store-of-value given the potential that rests in digitalized national currencies.

He seems to have emphasized on two things. First, he noted that if he were the U.S. government, he would be working towards tokenizing the USD – something that China is already working on with its Yuan and second, reasons for choosing Bitcoin.

The reason why the latter is an important step stems from the accessibility of the currency. More specifically, he argued that if the Yuan were to be tokenized, while the USD remains as is, then it would become easier for other countries to buy the former. In order to prevent this and ensure that the USD remains the “global reserve currency”, Pompliano deems tokenization is crucial.

As per his words:

“We will reach a point where the U.S. Dollar will become digital. Other currencies will become digital. If I’m the U.S. government, I think they should tokenize the dollar immediately.”

The second thing obviously entails his opinion on Bitcoin, where the Co-Founder is strong in his belief that Bitcoin will take the win all the way through. At the end of the day, Pompliano trusts that the people will pick a currency that neither reflects manipulation nor censorship; not to forget one that lacks government control and intervention.

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Author: Nirmala Velupillai

Pompliano Believes Satoshi Should Get The Nobel Peace Prize For The Creation of Bitcoin

Anthony Pompliano, the founder of Morgan Creek Digital, a large digital assets company, has recently affirmed that the creator of Bitcoin, the person who created the alias of Satoshi Nakamoto, should receive the Nobel Peace Prize for his contribution to the world.

According to the executive, Satoshi has created the first global reserve that could be fully used without anyone ever needing to engage in

“violence”.

Pompliano’s idea of violence comes from the view that national fiat currencies only hold value because they are centralized and backed by the coercion of the State. Because of this, a truly international currency that had no central control would be non-violent in his view.

During the current U. S.-China Trade War, his argument can be seen in how countries use their currencies as “weapons” to achieve economic policies and to fight for power. The whole world is shaken because of the tumultuous policies enacted by the two countries.

While China is using its fiat to hurt the U. S. economically, the U. S. is using the dollar to control the finances of the world for decades. Fiat currencies are from being only a store of value, they are a tool for power and for enacting policies. Only Bitcoin, in Pompliano’s vision, would be exempt from that and a more non-violent form of money.

Obviously, it would be hard to give Satoshi the price since he disappeared in 2010 and there is not a single trace of him anymore. People such as Craig Wright and others have been claiming that they are the real Satoshi Nakamoto for years, but no one was able to actually prove it yet until now.

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Author: Gabriel Machado

Bitcoin Is on Its Way to $100,000 By 2021’s End, Says Leading Crypto Voice Anthony Pompliano

Bitcoin Is on Its Way to $100,000 By 2021’s End, Says Leading Crypto Voice Anthony Pompliano
  • The Morgan Creek founder thinks that Bitcoin is on its way to $100,000 in the next 30 months.
  • Presently, Bitcoin is sitting between $10,000 and $11,000.

Bitcoin has gone through some drastic rises and falls through the last decade that it has been in the world. Nearly reaching $20,000 at the end of 2017, many people abandoned the token when it fell the following year.

However, Morgan Creek founder Anthony Pompliano still has faith in the asset, even stating that it would soon reach $100,000 in value.

Pompliano’s prediction is fairly conservative for this Bitcoin proponent, since he believes that the Bitcoin halving next year will coincide with the Federal Reserve’s decision to print new money.

When the halving happens, the reward will drop from 12.5 BTC to 6.25. In the past, the halving has often correlated with the start of a bull run, rather than the end.

Bitcoin halving extrapolation

Bitcoin halving extrapolation


Sourced from CCN

While this projection isn’t guaranteed, it suggests that the big fans of Bitcoin may want to lay low before they fully invest. CCN states that the biggest moves from Bitcoin often occur when few are watching, which Pompliano states will make for a smooth transition from one order of magnitude to the next.

He added,

“Well look, in 2017 Bitcoin went up 20x right so it’s a hyper-volatile asset. We’ve seen it go up 20, 30, 50x at times. We’ve also seen it draw down over 80% now three times.”

Many analysts seem to agree with Pompliano’s predictions. PlanB, a quantitative analyst, created a stock-to-flow model, reflecting information about Bitcoin that is dated from 2009 to 2012. This model correlates with the predicted prices from 2013 to 2019 with accuracy of up to 99.5%.

Anyone in the cryptocurrency industry, or even the traditional stock market, knows that nothing is certain until it happens. However, if this model maintains the same level of accuracy, it is realistically possible for Bitcoin to reach $100,000 before the end of 2021. Anyone that is willing to hold on for the ride until 2025 may even see a reward of $1 million a coin.

Pompliano brought up the fact that the stock-to-flow for Bitcoin is much like gold’s but with more to gain.

Explaining, he said,

“[T]here’s existing supply and you go ahead and just continue to add it. The difference is with Bitcoin we know exactly how many are getting created. 1 800 Bitcoin are going to be created today. The second thing is we know the total supply available.” After all there’s a finite supply of 21 million BTC, so there’s no question of how much is available.

Presently, Bitcoin is priced at $10,459.86, gaining 1.19% in value through the last 24 hours.

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Author: Krystle M