Anthony Pompliano (Pomp), co-founder of Morgan Creek Digital, is one of Bitcoin's most ardent supporters. His Twitter is a cryptocurrency hurricanenews, self-promotion and inspirational quotes. Weekly, he gives a summary of Bitcoin's greatest achievements, and each time ironically inserts the phrase “Bitcoin has not died yet!”.
Pomp optimistically believes that Bitcoin will not only survive, but also become the world's reserve currency.
CoinDesk journalist Daniel Kuhn met with AnthonyPompliano to talk about how 2019 was in the crypto industry, how to make successful investments, and also tried to find out how it feels to be a public figure in the world of cryptocurrencies.
For some time now you have become an outstanding figure in the crypto industry. What are the most important events of the crypto industry in 2019 that you would single out?
I think the most significant events of 2019The years saw the fall of the bear market, Libra, and China's progress towards blockchain technology. Also, I believe that significant progress has been made in recognizing cryptocurrencies as institutional investors, although these were not banks, but institutions such as endowment funds of universities, hospital insurance - those who manage real funds and are materially interested in return on assets.
Why have these players now changed their attitude towards cryptocurrencies?
I think people now understand the difference betweenBitcoin and blockchain (which, by the way, is more understandable to them). It is more difficult to understand bitcoin and other digital assets that should become an integral part of the future automated world, while blockchain is just a system of accounting and tracking. I think that all of this in combination allows the crypto industry and digital assets to successfully raise money.
Blockchain also blends in well with other technology trends that investors are already investing in. In fact, in the world there is only an increase in purchased trends.
Please explain how cryptocurrencies fit into the trend of the future of the automated world.
Cryptocurrencies are a fundamental componentupcoming technological changes. I’m always joking, saying that no one comes to our office and says: “Hey, we are a company that creates Excel” - they simply create and implement it.
If you want to track automatedmicrotransactions or high-frequency transactions between a huge number of devices on the network, you may not be able to do this. However, if you want interoperability between different systems, then public registries allow you to do this.
We often strive to find such a blockchain,"Which will be distributed in the future", and in which "it is better to invest now than wait 10 years." However, as you see, it would be even more reasonable to invest in a company that seeks to find and use common ground between various technologies and systems.
In your opinion, how did the Libra project influence people's investment sentiment?
In fact, Libra is a very good idea. And in terms of moods, I will say three things.
- Firstly, it made central banks and regulators around the world think out their own approach to cryptocurrencies.
- Secondly, the US reaction was not as positive as we would like. There was a lot of negative reaction - almost like in the case of parents who are overly attentive to their children.
- Thirdly, it helped to draw a clear linebetween libra and bitcoin. I think this separation is very useful, because it shows the value of bitcoin for people, and now they have something to compare it with.
Do you think this negative reaction against Libra is justified in any way?
In fact, I believe that regulators shouldworry less about Libra; and worry more about the digital currencies of central banks. Facebook was to become one of the 100 companies running Libra. The only way to make a decision in Libra is to come to a consensus among many corporations from different continents and industries, which can be either commercial or non-profit. In that case, it would be very difficult for one player to play a dishonest game.
Take, for example, JPMorgan or Wells Fargo,who can make individual decisions, as they only control the situation. I am afraid that such banks will launch digital currencies, which will be adopted domestically for the movement of capital. Their corporate partners will do the same, and such currencies will begin to be widely used in retail trade. One fine day, they can decide on their own how to get rid of pegging to the dollar. It is important to understand the nuances of how everything is arranged, and what it can lead to, than just saying "this is good" or "this is bad."
The Chinese government is also working on its own digital currency. Recently, Fed members announced that they are studying stablecoin supported by the US dollar. How do you feel about this?
Today, the US is trying to protect its monetarysuperiority. I recently published an article stating that the United States is still suffering from the “innovator dilemma”. The US really felt comfortable for a long time, but the advent of new technologies violates their position. Thus, creating a digital dollar would be a smart move.
It is necessary to do exactly what China is doing, howeverthis must be consistent with those democratic and capitalist ideals that are sacred to us. However, I think that in the long run only Bitcoin will benefit.
Do you think Bitcoin's success depends on mass acceptance by consumers?
This is similar to how religion spreads. Missionaries travel to a distant land and tell people about a god they have never heard of before. God's Word makes these new people believers.
We all want to live in a system where we are notcensored; in which nothing is taken from us and does not deprive the material foundations of life; and in which money does not lose value. And when we start looking for such a system for ourselves, then we find bitcoin. I believe that the best ally of Bitcoin is the time to survive. And people will choose Bitcoin as they become aware of its value and usefulness.
What have you learned from the time you invested in digital assets?
These are the three main things.
- Firstly, times have not changed. All traditional lessons for investors are relevant today - no need to be emotional; you should always think about the long term; and also to increase investment by investing at regular intervals - regardless of the asset selected.
- Secondly, one must be content with the opinion on which no consensus has been reached. In 2016 - 2017 we were all against the ICO, and it was the right choice.
- Thirdly, even being incredible optimists,we are not able to see and correctly evaluate what will happen in the long run. Well, who could have predicted in 1985 what the Internet of today will be? Even the most incredible optimists could not have foreseen this. I want to say that we usually underestimate what we face in the future.
Speaking of our inability to see things in perspective, can you name what took you by surprise in 2019?
The first is the situation with Libra. The announcement of this project was a complete surprise. As well as the response against them. The second is the recognition of cryptocurrencies by institutional investors. We all knew that it would be, but we did not think that everything would happen at such an incredible speed.
What do the media overlook when covering the crypto industry?
This question is related to human nature. Bitcoin is the largest cryptocurrency, the most volatile and liquid market. This is the oldest representative of cryptocurrencies, with which the spirit of the entire crypto industry is closely related. Whenever people talk about bitcoin, they mean the whole industry, although there are many other things and aspects that should be covered. There is also a lot of other shit that shouldn't be talked about.