Bitcoin Nears Massive Institutional Adoption Says Morgan Creek Co-Founder Pompliano

August 22, 2019 / by Crypto.IQ

As a potential recession looms, many crypto enthusiasts are starting to believe that it’s a matter of time before institutional investors adopt cryptocurrencies.  Morgan Creek Digital Assets co-founder, Anthony Pompliano, says Bitcoin will soon be in most institutional investors’ portfolios.

In an interview with CNBC on Tuesday, Pompliano said that with each passing week infrastructure is being developed around Bitcoin and the crypto markets. Pompliano says the economy is at the edge.  He pointed at recent developments like Bitcoin’s record-breaking hash rate as one of the signs that Bitcoin is growing its support and Security. 

He also drew reference to the recent approval by regulators of the Bakkt platform which will settle Bitcoin futures from NYSE operator Intercontinental Exchange. Pompliano believes that Bitcoin will by 2021 reach $100,000. When CNBC’s Joe Kernen challenged his bullish outlook, he pointed out several factors that in the near term could suppress Bitcoin’s price temporarily. One of the factors is presumptuous regulations that he says could put off investors.

According to Pompliano, the adoption of Bitcoin is tied to regulatory easing, which needs financial regulators and governments to establish a way of coexisting with Bitcoin. He says policies should not suffocate cryptocurrencies. He believes that although currently only a small number of people in the world are aware of Bitcoin, sooner or later, more people will be aware of its existence. He added that Bitcoin is still tricky to buy, and that is something that needs to be overcome for the digital asset to realize its potential.

The $100,000 forecast was based on the Bitcoin halving expected in May 2020 where mining rewards will be halved, thus leading to scarcity. Why isn’t Bitcoin already at $100,000? He stated that the effect of regulation on Bitcoin adoption and price is very insignificant.

Pompliano cited inflow of institutional capital, growing legitimization of digital assets, record trading volumes, as well as global instability as  factors that will promote mainstream adoption of the digital asset.