The bitcoin halving that is set to take place in May will be like “rocket fuel” for an already bullish asset, this according to Anthony Pompliano, host of The Pomp Podcast.
Bitcoin halving is the process of cutting the supply of new bitcoins by half, which occurs every 210,000 blocks. Pompliano likened this process to gold miners cutting their supply by half.
While quantitative easing may push gold prices towards the $2,000 to $2,500 range, that gain is still not a very material increase in value compared to bitcoin’s potential, he added.
“Over the next two years, I think that it will have hundreds of percent of appreciation, given the quantitative easing and the volatility it brings,” Pompliano said. “My personal view is that we’ll see bitcoin hit $100,000 before December, 2021.”
On the economy, a recovery from the slump caused by the coronavirus can only happen once the public returns to work, said Pompliano.
Additionally, when there is insufficient information on the virus, government officials tend to make poor decisions.
“We have a health care crisis that’s causing an economic crisis, but the problem with a lot of the decisions that are being made right now is we have bad data. If I asked you, right now, how many people in the United States have coronavirus, nobody can answer that question. I can’t answer it and neither can anybody else,” he said.
The issue is that in a country of 330 million people, only around 895 thousand have been tested, he said.
Additionally, there is some misunderstanding as to how many of the deaths were caused strictly by the virus.
“In Italy, for example, 99% of the deaths that had been reported actually had other health issues. What ends up happening is we’re getting the conflation between somebody who dies who tests positive for COVID-19, and somebody who dies from COVID-19,” he said.