Anthony Pompliano claims that Bitcoin is the world's largest insurance company.
American entrepreneur and investor Anthony Pompliano, founder and partner of Morgan Creek Digital, has spoken about the future of Bitcoin in the financial industry.
In a Recent episode on The Pomp Letter podcastPompliano said many investors have been buying bitcoins as a form of insurance to protect their value.
The investor noted that there are many reasons Bitcoin investors have to trust the cryptocurrency as insurance, from protecting its value from inflation and the devaluation of fiat money, to protecting its value from monetary and fiscal policies imposed by governments, from seizures by federal agencies and from economic censorship.
“Just as there are different insurance policies that serve different purposes, Bitcoin is different things to different people“Pompelliano said during the podcast, noting that historically no traditional insurance company has ever offered a policy against hyperinflation or asset seizures like Bitcoin does.
Anthony Pompliano is one of the biggest proponents of Bitcoin and the blockchain industry. On his podcast The Pomp Letter, Pompliano interviews leading figures from the world of finance, business, technology, and the crypto industry.
It may interest you: Bitcoin continues to attract tourists to El Salvador: more than 1 million visited the country this year
Bitcoin's role as insurance
To illustrate the role that Bitcoin plays as insurance for its investors, Pompliano explained how traditional insurance companies work, offering their clients an insurance contract against different unexpected situations and events to protect their assets and even preserve their health.
However, while Bitcoin works in a similar way to these insurance companies, the cryptocurrency also offers greater advantages to its holders, Pompliano explained.
Thus, instead of having to pay an ongoing premium to have insurance at all times, Bitcoin holders only have to pay a one-time premium, which is the cost of acquiring the cryptocurrency initially, based on its price on the market. On the other hand, the American investor highlighted the potential for Bitcoin to appreciate in situations of economic uncertainty or financial crises. Pompliano cited several examples in which the price of Bitcoin appreciated while catastrophes occurred in the legacy financial system, such as the recent banking crisis in the United States, which has led to the collapse of major banks such as Silicon Valley Bank, Signature Bank and First Republic Bank.
Pompliano added that more and more people are turning to Bitcoin as a safe haven for a store of value when trust in the traditional system is shaken.
In addition to this, Bitcoin's decentralization has become one of the cryptocurrency's biggest attractions for those seeking to enjoy their right to financial freedom. In this context, Pompliano said that With Bitcoin, people don't have to trust that an insurance company will honor their contract. in times of crisis. In contrast, with Bitcoin, people do not have to file a claim on their “insurance” as the cryptocurrency provides a programmable, auditable and trustworthy digital product.
“The decentralized and global nature of the asset increases resilience and accessibility for billions of people,” the crypto investor commented.
More than 1 million addresses hold 1 BTC
The number of people who trust Bitcoin is growing, as evidenced by blockchain data. Analytics firm Glassnode noted that the number of BTC wallet addresses holding 1 bitcoin or more has reached a new all-time high of 1.001.702 addresses.
Bitcoin set this new record yesterday, leaving behind its previous ATH of 1.001.699 addresses, which was seen on Wednesday, May 17.
Likewise, the number of small investors who place their trust in the market-leading cryptocurrency has also increased to a new ATH. The same platform noted that the number of BTC wallet addresses with a positive balance today reached a new all-time high of 99.412.937 directions.
Continue reading: Liechtenstein will accept Bitcoin for payment of government services
IMPORTANT: The content of this article is for informational purposes only and, in no case, what is written here should be taken as investment advice or recommendations. Bit2Me News reminds you that before making any investment you should educate yourself and know where you invest your money, as well as the pros and cons of the system. We separate ourselves from the actions and consequences that ignorance may entail. If you decide to invest in this or another asset class, you are solely responsible for the consequences that your decisions and actions may have.
