Bitcoin’s rise continues, recently touching $100,000, and Anthony Pompliano, founder and CEO of Professional Capital Management, argues that its future success is decoupled from political influence. In a recent interview, Pompliano posited that Bitcoin is becoming the new benchmark for investors, potentially eclipsing the S&P 500.
Pompliano highlighted the limitations of the S&P 500, noting its restricted trading hours compared to Bitcoin’s 24/7 availability. He emphasized Bitcoin’s large and liquid market, making it highly sensitive to global liquidity shifts. Crucially, Pompliano pointed to a generational shift, with younger investors increasingly using Bitcoin as their benchmark, adhering to a “beat Bitcoin or buy Bitcoin” philosophy.
While acknowledging the potential for multiple benchmarks, Pompliano questioned the S&P 500’s efficacy, citing gold’s superior performance in 2024. He suggested that currency debasement might be contributing to the S&P 500’s gains, rather than genuine business growth.
Addressing MicroStrategy’s recent $2 billion Bitcoin purchase, Pompliano commended the company for pioneering a new corporate finance model, enabling businesses to hold Bitcoin on their balance sheets. He also noted that MicroStrategy’s approach provides access to Bitcoin for institutional investors like insurance companies and pension funds. However, he advised individual investors to prioritize understanding Bitcoin’s fundamentals before investing through intermediaries.
Regarding potential political influence, Pompliano downplayed the impact of a national Bitcoin reserve, even if endorsed by a figure like former President Trump. While such a move could generate short-term price fluctuations, Pompliano believes Bitcoin’s long-term success is independent of presidential actions.
Despite his bullish stance, Pompliano acknowledged long-term challenges for Bitcoin, particularly the paradox of balancing mass adoption with its original appeal as an asset outside the traditional financial system. He anticipates changes in Bitcoin’s holder base, market structure, and the asset itself as it moves towards mainstream acceptance.
