Anthony Pompliano (aka Pomp) recently interviewed the bitcoin maximalist Murad Mahmudov about the future of bitcoin in the doom of hyper inflated fiat currencies.
The following are some of the essential statements in the below transcript of the interview.
Whenever a company has to do business in another country they have to exchange currency, then change that for goods, and then go back and forth between currencies with cost and time consequences. So it’s kind of like bartering, in the sense that you need to make these extra transactions; with bitcoin these layers of transactions are abstracted.
Crypto currencies, or bitcoin in particular are harder to seize, easier to transfer, harder to steal, cheaper, easier and faster to send around the world. They’re borderless, they are competitive, they’re highly deflationary, etc. And this is governed by an unbreakable algorithm in a decentralised global community.
BitCoin will soon be the second or third single biggest asset class, and eventually the single biggest asset in the world. Maybe only competing with real estate…
As bitcoin’s trader volume grows and as bitcoin’s liquidity gets deeper, as bitcoin’s order book become more abundant, as more and more people cognitively recognize it, as there are more hodlers, as there are more users, as there’s more infrastructure, the greater is the security. And most importantly, the bigger is the market cap, while the volatility will decrease.
Bitcoin isn’t competing against PayPal or VISA. Bitcoin is competing against central banks and more precisely against the Bank of International Settlements,
as it is a major settlement network for large transactions and against central banks for currency issuance.
Today, crypto currency is a collectable. Then, it will become a store value. Then, it’s going to be a medium of exchange and finally it’s going to be unit of account.
The entire crypto phenomena is a grand wealth transfer event, which will arguably be the single biggest wealth transfer in human history. It will be a wealth transfer from the old to the young, from the tech savvy to the more conservative, from the open minded to the more closed minded; and of course the losing side will be the people holding Fiat currencies, gold, etc.
Bitcoin will be a black hole that will absorb a tremendous amount of value. Today, the total addressable market is between 100 and 200 trillion, so bitcoin will go off the $10 million per bitcoin price without even counting the inevitable hyperinflation of Fiat currencies.
When this bear market is done somewhere around $80 billion, the high net worth individuals and the more edgy, open-minded, tech savvy institutions, and eventually, government institutions will push crypto valuation to the extreme. Even today from a technological perspective, it is fiduciary irresponsible not to have at least 60% of your cryptocurrency portfolio in bitcoin, and it is fiduciary irresponsible not to be in any crypto investments given that it was the best performing asset class over the last decade.
Jesper Carvalho Andersen 