Bitcoin Price Talk on the Currency’s 11th Anniversary by Anthony Pompliano
Bitcoin is the most renowned of all cryptocurrencies in the market. Recently, the digital coin celebrated its 11th anniversary, as it is successful since its innovation. In the last ten years, Bitcoin attained many milestones regarding price adoption and technical progress.
When Bitcoin put up its bull run in 2017, it attracted many people, and since then, there are always speculations on why the price surges and declines.
Anthony Pompliano on BTC Price Changes
During a podcast with Darius Dale, Anthony Pompliano discussed why Bitcoin price changes. Pompliano said that there are various comparatively basic simplicity things contributing to the price variation. The two critical things are, one, the price reacts to supply and demand, and two, the price is dependant on what you price the asset in.
Pomliano noted that Bitcoin gets priced in one-dollar just like in amazon stock so that the dollar value is moving. Therefore, if you end up with one dollar equals one dollar, inflation is the hit, so purchasing power is changing, but one dollar is one dollar.
Anthony further commented that there are two financial systems concerning Bitcoin; the inflationary fraction reserve system, based on USD, and the deflationary kind of automated software-driven. The latter is Bitcoin. Pompliano said that the result of the price changes is that you get one hyper-driven retail market. You have a relatively small number of people holding assets, it’s very human-driven, and suddenly, it gets exciting, and the price shoots up.
Pompliano also added that price discovery also contributes to BTC price changes apart from the comparatively small market. He noted that Bitcoin’s price discovery is natural, as it is a newer asset than Gold. Bitcoin is volatile because it is new, as people are still attempting to know its value, said Pompliano.