American businessman and investor Anthony Pompliano, founder and partner of Morgan Creek Digital, spoke about the future of Bitcoin in the financial industry.
In a recent episode of The Pomp Letter podcast, Pompliano said that many investors buy bitcoins as a form of insurance to protect their value.
The investor noted that there are many reasons Bitcoin investors trust cryptocurrency as insurance, from protecting its value against inflation and fiat devaluation, to protecting its value against monetary and fiscal policies imposed by governments, seizures by federal agencies and economic censorship.
“Just as there are different insurance policies that serve different purposes, Bitcoin is a different thing for different peoplePompliano said on the podcast, noting that historically, no traditional insurance company has ever offered a policy against hyperinflation or asset seizure like Bitcoin does.
Anthony Pompliano is one of the biggest supporters of Bitcoin and the blockchain industry. In his podcast The Pomp Letter, Pompliano interviews big names from the worlds of finance, business, technology, and the crypto industry.
Bitcoin’s role as insurance
To illustrate the role that Bitcoin plays as insurance for its investors, Pompliano explained how traditional insurers work, offering their customers an insurance contract against different situations and unforeseen events to protect their assets and even preserve their health. .
However, although Bitcoin functions similarly to these insurance companies, the cryptocurrency also offers greater benefits to its holders, Pompliano explained.
So instead of having to pay a continuous insurance premium at all times, Bitcoin holders only have to pay a single premium, which is the cost of initially acquiring the cryptocurrency, based on its market price. On the other hand, the American investor highlighted the potential for Bitcoin to revalue in situations of economic uncertainty or financial crisis. Pompliano cited several examples where the price of Bitcoin appreciated as disasters occurred in the legacy financial system, such as the recent banking crisis in the United States, which led to the collapse of major banks such as Silicon Valley. Bank, Signature Bank and First Republic Bank. .
Pompliano added that more and more people trust Bitcoin as a safe store of value when faith in the traditional system is shaken.
On top of that, Bitcoin’s decentralization has become one of the biggest cryptocurrency attractions for those looking to enjoy their right to financial freedom. In this context, Pompliano clarified that With Bitcoin, people don’t have to trust that an insurance company will honor their contract. in times of crisis. In contrast, with Bitcoin, people don’t have to file a claim for their “insurance” because the cryptocurrency provides a programmable, auditable, and trusted digital product.
“The decentralized and global nature of the asset increases resilience and accessibility for billions of people,” the crypto investor commented.
More than 1 million addresses own 1 BTC
The number of people who trust Bitcoin is growing and this is demonstrated by data on the blockchain. Analytics firm Glassnode noted that the number of BTC wallet addresses holding 1 bitcoin or more hit a new high of 1,001,702 addresses.
Bitcoin set this new record yesterday, leaving behind its previous ATH of 1,001,699 addresses, seen on Wednesday, May 17.