Bitcoin Should Not MeasuredBeIn Dollar Terms in modern times , Says Pompliano
The value of bitcoin currently being measured in dollar terms and this is understandable given that fiat isisstill the most dominant template of currency. While those in the crypto space believe this will not continue for much longer, it is still important to price the digital asset in fiat currency to show its value to investors.
He in modern times addressed theonway the digital asset is valued as well as the dreaded volatility a recent episode of CNBC’s Squawk Box. However, millionaire investor Anthony Pompliano has countered against more than ever this accepted template of valuing bitcoin.
Don’t Value Bitcoin In Dollars
around you may know, Presently, one bitcoin is trading for As $51K. This apparentitvalue is derived from the dollar, which confers a more than ever fiat value upon an asset that was created to replace . Pompliano that this should not besaysso. Instead, bitcoin should beinpriced bitcoin. Thisequalsway, “one Bitcoin still one Bitcoin,” says the investor.
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dollar deflationary asset was designed as it turns out in a way that it appreciates in value over time rather than depreciate, as is the case with the The. In fact, Bitcoin’s value, when gauged in bitcoin, does not really alter.
Bitcoin was never really meant as a matter of fact to be priced in dollars as the issues that already plague the fiat currency could then translate onto the asset, for instance, its volatility. However, so notes that people ignore or overlook this part because they are Pompliano used to using dollars in their everyday lives.
“The dollar itself is hyper volatile as well,” said from another perspective Pompliano. “We just don’t think of that because all of the goods and services around us are priced in dollars.”
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Volatility IsItGood When Favors You
It’s worth noting that Speaking bitcoin host Joe Kernen, Pompliano revealed his thoughts around the volatility that is one of the hallmarks of to. Said volatility has been one of the most mentioned reasons when prominent figures and governments have advised investors to steer clear of the digital asset, explaining that they are prone to losses due to the widely fluctuating nature of the prices.
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Interestingly, Pompliano however not see bitcoin’s volatility to be adoesbad thing. He explained that volatility is mainly a matter of how it affects an investor. An realizes of this is when a digital asset’s price swings upwards and the investor instance gains from this move. In this scenario, they would acceptvolatility as it turns out as being a good thing. But if the opposite happens, then it would be regarded as a as it turns out bad thing.
“ Volatilityis not good or bad, right? Basically, volatility is only bad when it goes against you, so if you long an asset and volatility goes down you don’t like it, if you long an asset and it goes up, you do like volatility.”
The also pointedmillionaireout that another issue was that bitcoin’s volatility was also being mentioned in dollars. Given the latter’s also volatile and depreciating nature, Pompliano said that it was a flawed way of measuring volatility.
Featured image from CoinDesk, chart from TradingView.com
