According to venture capitalist Anthony Pompliano (Pomp), Bitcoin will be the top asset of choice to ensure the AI sector’s huge profits over the next decade.
“We are entering a world of automation – where AI will create huge amounts of wealth and Bitcoin is responsible for protecting that wealth,” Pomp explain in a June 24 interview.
Pomp dismissed the idea that AI – as today’s hottest technology trend – has replaced Bitcoin and the broader cryptocurrency industry; instead, he attributed these two technologies will “walk side by side” in the next 10 years.
“It’s possible that GDP will actually increase due to productivity from AI and then Bitcoin can protect this massive wealth well. I think those who only focus on observing the immediate signs will miss a golden opportunity in the next decade.”
Pompliano also raises an interesting point about the intersection between AI and currency. As AI systems and technologies become more integrated into various aspects of the economy, the question is: What currency will these smart machines use? Bitcoin, with its decentralized nature and digital infrastructure, could be a viable option, suitable for the future scenario shaped by AI advancements.
AI is going to create enormous amounts of wealth and #Bitcoin is going to protect that wealth.pic.twitter.com/f14bLLfJ5v
— Michael Saylor⚡️ (@saylor) June 24, 2024
On June 23, Bitcoin continued to decline and bottomed over the past seven weeks at $59,086.
Negative psychology Most of it comes from work MT. Gox prepares to refund the amount Bitcoin is worth $8.5 billion to its creditors, and capital outflows from US Bitcoin spot ETFs top $1 billion over the past 10 trading days.
There was also a massive sell-off from Bitcoin miners.
As a result, Bitcoin and cryptocurrency market sentiment has dropped to the “Fear” zone with a score of 46/100.
This time last week, the index was in the “Greed” zone with a score of 64/100.
Fear & Greed Index of Bitcoin and the Cryptocurrency Sector. Source: Alternative.me
But Pompliano doesn’t mind the current 15% price drop, pointing out that price cuts of 30% or more are common in bull markets.
According to him, a lot of people in the public markets say “invest until May and then disappear” and as a result, Q2 and Q3 tend to trade sideways – especially during the years of the halving event.
Pomp thinks that is happening again here – but he predicts another price increase will take place in the final quarter or early 2025, which is also a historical trend in halving years.
Itadori
According to Cointelegraph
