Anthony Pompliano, VC investor and a vocal Bitcoin proponent, has published a tweet about the recent prediction made by the Bank of America regarding a massive payout that the U.S. government will have to make if the Fed does not make a U-turn, loosening its measures regarding interest rates.
Per the tweet, this huge payout may be as high as $1.6 trillion in annual interest payments, and it is to be made by December.
Bank of America is predicting the US government will pay $1.6 trillion in annual interest payments by December if the Fed doesn’t cut interest rates. pic.twitter.com/taT1zjG9hd
— Pomp 🌪 (@APompliano) April 1, 2024
Many commentators pointed out that this turn of events would signify higher inflation hitting the U.S. and mentioned Bitcoin as the inflation hedge and potentially the new money standard of the U.S. economy in the future – should the U.S. dollar fail.
Pompliano’s Bitcoin talk on CNBC, recent major milestone before halving
On April 1, Pompliano made an appearance on CNBC’s Squawk Box and talked to the team of anchors about Bitcoin. The expert explained that Bitcoin can be perceived by various people as a totally different asset – a risk-on investment or an inflation hedge/store of value. Pompliano gave an example, saying that those who are currently buying spot Bitcoin ETFs just want to make profit on BTC, while those who invest in Bitcoin directly are doing it to save their money from inflation.
Bitcoin provides hope & protection for anyone.
The US dollar has lost 25% of its purchasing power in 4 years, while bitcoin has gained over 800%.
We are watching a global store of value be adopted.
Here is my full segment on @SquawkCNBC this morning. pic.twitter.com/XvO0B4yE0o
— Pomp 🌪 (@APompliano) April 1, 2024
He also admitted that in many countries – and he gave Argentina as an example – users prefer to leverage stablecoins since they are backed by USD, while in Nigeria there are a lot of people who stack Sats. This was his response to cohost Andrew Sorkin, who stated that he had just returned from South Africa, where he asked people from different social strata about Bitcoin, and none of them said they owned it despite the bad economic situation in the region.
Pompliano told the CNBC anchors that just recently, Bitcoin reached several crucial milestones right before the approaching halving. He reminded them that BTC has been growing for half a year non-stop recently, and it reached the highest weekly, monthly and quarterly close just recently. The last four times such progress happened, Pompliano stated, the world’s flagship cryptocurrency appreciated by at least 300%.
At the time of this writing, Bitcoin is changing hands at $65,529 after plummeting 6% today from the $69,700 level.
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