CNBC had Anthony Pompliano, co-founder and partner at Morgan Creek Digital Assets, on as guest to discuss Bitcoin as a hedge against global market risks. While on the topic, guest host Kevin O’Leary, predictably trolls Pompliano about his asset allocation strategy.
Watch the video below to see Mr. Wonderful’s reaction as Pompliano discloses that half of his networth is in bitcoin. His stance against bitcoin has been consistent throughout the past few years.
Check out clip from CNBC below, we’re also including the transcript in case you can’t see the video. All rights belong to CNBC and please refer all credits to CNBC.
had always been an argument that Bitcoin is a good sort of,
hedge against global turmoil against central banks, et cetera. It seems to be coming to fruition right now.
So how much longer is this gonna last?
Yeah, institutions have spent decades looking for non related assets they can use as a diversification. That portfolio. We’ve been banging the drum for over a year now, saying that this is a non correlated asymmetric asset. If you look at times of global instability like in May, where were kind of lobbying? Tariff threats and trade wars are raging on Bitcoins up fifty five percent. It’s got a negative correlation. So his negative point nine Teo S and P negative point eight two gold. I think that we’re gonna continue to see that play out where there’s people around the world that are electing to put their wealth into something that is controlled by software and cannot be manipulated. Bicycle country politician.
You know, when we see, for instance, in the oil markets we see a drone strike,
in Iran or something like that, right? You have sort of ah, bump in the price of oil. That’s sort of a crude premium that’s built in. Are we seeing a premium built into the price of Bitcoin with this most recent rise based on the threat of a currency war? How much is that premium, Do you think?
Yes, so we have to remember is we’ve seen this playoff before, right in countries like Venezuela, Iran, Argentina, except for where the curse he begins to fail. Or there’s issues. We do see large upticks in volume where people are electing to take their wealth out of those currencies. Put him into Big Quint. They’re small countries, though. Now we’re seeing this play out in one of the largest economies in the world. And so, with twenty seven trillion dollars of deposits and the Chinese banks, one percent of that moves that would double the market cap krypto,
the question I have is, Do you believe that this is a true function of outflows from China? Or do you think this really is the perception of outflows, that there will be outflows from China and therefore this is American and other investors, if you will, who are pushing the price up meaning,
and by the way, from what I understand, it’s not so easy for capital actually tow to leave China. Despite the debates we’ve had on this table,
I think a combination of both right, So there are definitely some outflows occurring. You see things like central bank meetings, exceptional reports coming out where people are talking about Bitcoins. So I definitely think that some people are doing it at the same time. I think that what we get is a reminder that we understand that Look, why participate in the chaos, right? You know, what we’re basically doing is we’re here to sound the alarm and say there is a way to opt out. There’s a way to get diversification to get a hedge. You don’t go and sell all of your assets and put one hundred percent Bitcoin right, but two sizes in the institutional quality portfolio of one to five percent and be able to get that hedge. When you have non correlation. When you have asymmetric return, we think that it actually can do things the portfolio that other assets can’t do.
calling help me become a believer. Okay, because I’m a sceptic of this. I have my crypto crap wallet. I put one hundred dollars into a two years two months ago at a Harvard business school class. At night, it’s worth thirty dollars and sixty two cents, primarily because all the other crap ethereum ex Rp Bitcoin, cash like coin, stellar, luminous blab blab blab about what happened. All that stuff. If this is really such a great idea, why is there only one Vegas game working?
Yeah, well, look, I’ll save you a lot of headache, right? I’m here to talk about Bitcoin. Bitcoin is the most important thing, and that’s the only one that you should focus on. And the reason is we’re now enduring a position where it’s actually irresponsible for institutions to not have exposure of this asset. And the reason is their job is to find assets that actually can provide non correlation to the rest of the markets, especially in times of global instability where there’s likely to be market drawdowns. Bitcoin is providing that data. It’s just math, right? It’s not personal opinion. It’s not someone else’s opinion. The math suggests that it is non correlated to negatively correlated,
how much of your own dough is in,
over fifty percent by networks of Bitcoin, and I don’t plan to sell.
I forbid that That’s insane. Did that?
Everything about diversification, investing That’s crazy. How much?
of your networks in the stock market?
in anyone stock? Never more than five percent in any one sector. Never twenty. I teach this stuff. You never go beyond situations of that nature. Fifty percent Shame on you. That’s nuts.
And what the assumption being that what happens here for you,
so get because it is a scarce asset. What you’re essentially looking at is the global adoption has to continue to occur, and it’s a fix. Supplies just supply and demand economics, and I personally believe that humans will continue to trust software.
Value it. Let’s just remember they have to value this scarce,
scarce acid. There’s a lot of things that are scarce. Nobody cares.
about course. Look, if you don’t believe in Bitcoin, you’re essentially saying you don’t believe in cryptography.
Anthony calling Pick point of Safe Haven is a bit reckless, in my opinion, with all the hacks, you know that if they have,
caused so much,
Bitcoin itself, the hacks on the exchange level, which is completely our viewers at home, who are contemplating buying Bitcoin after hearing you today. How should they think about safety in terms of the chain of custody? Who should they open account with trade with? For sure.
So what we do for our clients is we essentially use qualified custodians. They’re very similar to what you see in the legacy system. Again. Do your own research, right. Make sure that you’re actually vetting these changes. There’s a lot of exchanges out there. There’s a couple that we actually think provide quality solutions. We’ve chosen to go with the ones that have that qualified custodian.