Anthony Pompliano

The first time that we broke back below 100K.

People kind of forget just in what short period of time we've gone from 126 to 75K.

And so that bouncy ball down a set of stairs is usually the exact type of trading that you would see in a bear market.

Then we've got this whole deflation conversation and markets being forward-looking.

I think what's really frustrating to a lot of people is that gold has been going up a lot while Bitcoin has been going down.

So if you have a lack of inflation, why is gold going up?

And again, as I've explained in the past, I believe that gold is going up because central banks are buying gold, but they're not buying it because they think that inflation is coming.

They're buying it as a much more macro decision to get away from fiat currencies.

And the way that you see this is,

historically if a central bank went and they said okay you know what i don't think that the dollar is going to do well i think the dollar is going to get devalued i think there's going to be high inflation i may just think that there are some sort of socio-economic or geopolitical issues in the united states and i want to lessen my dependency on u.s dollars historically they would sell dollars and maybe they would buy yen or juan or euros or pesos or something else that would be moving from one fiat currency to another but that's not what they're doing

instead what we're seeing is we're seeing people sell dollars or treasuries and buy gold and so it's actually part of a d fiat process rather than a d dollarization i think that distinction is very important because what it shows is the reason why people are buying gold is part of this d fiat process

It's not about inflation.

It's not about a single fiat currency.

It's actually about the fact that certain central banks are saying, look, we want to significantly increase our gold reserves and therefore gold is going up, even if we are not necessarily worried about the inflation.

Now, Bitcoin historically has not been an asset that is bought by central banks.

And so the quote unquote net new buyer to the store of value category are these central banks.

Now, it's not that they're new buyers, it's just that the capital they're putting in is quote-unquote net new to the inflation hedge or the store of value asset class.

And so Bitcoin does not yet be accepted by these central banks as an asset that is part of a defiat process.

Instead, they look at Bitcoin as something that could potentially hedge against inflation, or may even be still in the speculative bucket.

When they go to lessen their dependency on all fiat currencies, Bitcoin is not part of that conversation yet.