Bitcoin Should Not Be Measured in Dollars, Pompliano Declares

Bitcoin’s worth is now measured in dollars, which is logical considering that fiat money remains the most prevalent form of currency. While experts in the cryptocurrency field think this will not last long, it is still necessary to price the digital asset in fiat money in order to demonstrate its worth to investors.

Millionaire investor Anthony Pompliano, on the other hand, has argued against this widely recognised method of pricing bitcoin. On a recent broadcast of CNBC’s Squawk Box, he discussed how the digital asset is priced as well as the feared volatility.

At the moment, one bitcoin is worth around $51K. This apparent worth is generated from the dollar, which imbues an asset developed to replace it with a fiat value. According to Pompliano, this should not be the case. Rather than that, bitcoin’s price should be determined in bitcoin. This manner, “one Bitcoin remains one Bitcoin,” the investor asserts.

When measured in bitcoin, the value of bitcoin does not fluctuate much. The deflationary asset was created in such a manner that its value increases with time, rather than depreciating, like the dollar does.

Pompliano observes, however, that many individuals disregard or neglect this section because they are so used to utilising dollars in their daily life. Bitcoin was never intended to be valued in dollars, since the faults plaguing fiat currencies might then be transferred to the asset, such as its volatility. “The dollar is also quite volatile,” Pompliano said. “We just do not consider it since everything around us is priced in dollars.”

Volatility Is Beneficial When It Benefits You Speaking with presenter Joe Kernen, Pompliano discussed his opinions on bitcoin’s volatility. Volatility has been one of the most often cited reasons why prominent personalities and governments have urged investors to avoid the digital asset, stating that it is prone to losses owing to its highly volatile nature.

Pompliano, on the other hand, does not see bitcoin’s volatility negatively. He argued that volatility is mostly a function of an investor’s reaction to it. A good illustration of this is when the price of a digital asset goes higher and the investor profits from the rise. They would see volatility as a positive in this circumstance. However, if the converse occurs, it is seen as a negative event.

“Volatility is neither good nor evil, correct? Essentially, volatility is only detrimental when it works against you; so, if you own an asset and it declines, you dislike volatility; but, if you own an asset and it increases, you embrace volatility.”

Additionally, the billionaire said that another concern was that bitcoin’s volatility was being discussed in dollars. Given that the latter is likewise volatile and depreciating, Pompliano said that this was a poor method of calculating volatility.

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