#1424 Anthony & Polina Pompliano | Is Bitcoin Ready To EXPLODE Higher?!
Oct 22, 2024
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Polina Pompliano, author of 'Hidden Genius' and founder of The Profile, teams up with Anthony Pompliano, CEO of Professional Capital Management, to dissect the Bitcoin boom. They argue that Bitcoin’s rise stems from investment inflows and a bright regulatory outlook, overshadowing drab media predictions. The duo also delves into Elon Musk's innovations, such as Tesla's Optimus robot, while addressing political struggles faced by innovators. Additionally, they discuss the emergence of blue collar millionaires in home services and the reliability of prediction markets in politics.
Bitcoin's upward momentum is expected as demand increases, despite external influences like political events or monetary policies.
Goldman Sachs' bleak S&P 500 prediction contradicts historical performance and overlooks American companies' growth potential amidst inflation.
Elon Musk's innovative projects reflect a shift towards automation and showcase human ingenuity in overcoming regulatory and technological challenges.
Deep dives
Bitcoin's Upcoming Surge
Bitcoin is anticipated to rise significantly, independent of external factors such as political events or monetary policies. The previous sideways movement during the summer has come to an end, signaling a new phase of upward momentum. Historical patterns, particularly from 2020 and 2021, suggest that Bitcoin typically experiences sharp increases following supply shocks, and a similar pattern is expected over the next 18 months. Although the degree of this potential rise may not match past percentage gains, a notable increase is still predicted as demand outpaces supply.
Critique of Financial Predictions
Goldman Sachs has forecasted a dismal future for the U.S. stock market, predicting only a 3% nominal annual return over the next decade, which is met with skepticism. The argument asserts that real returns from bonds are negative, making it unwise to hold them, while stocks are expected to rise in response to inflation. The S&P 500 has a history of outperforming global indices, and the prediction that it will deliver negative returns undermines both its historical performance and the resilience of American companies. This disapproval is rooted in the belief that such pessimistic forecasts do not accurately reflect the capabilities and growth potential of America’s leading businesses.
Elon Musk's Innovations and Challenges
Elon Musk is characterized as a groundbreaking entrepreneur tackling ambitious projects despite facing regulatory hurdles and public scrutiny. Recent demonstrations of SpaceX's achievements, such as successfully catching rockets mid-air, illustrate the remarkable technological advancements being made under his leadership. Furthermore, Musk's ventures, including the development of humanoid robots, signify a shift towards automating household tasks, potentially revolutionizing everyday life. His work serves as an inspiration, showcasing human ingenuity and the capacity to overcome challenges in pursuit of innovation.
Emergence of Blue-Collar Millionaires
The influx of private equity into home service sectors is transforming blue-collar workers into millionaires, highlighting a significant shift in wealth distribution. This trend reflects not only the growing value of essential services but also the financialization of local businesses, often previously considered mom-and-pop operations. As private equity firms acquire these companies, they offer lucrative payouts to owners, turning long-held businesses into valuable assets. This phenomenon suggests that traditional routes to wealth, like owning a small business, continue to thrive in an evolving economic landscape.
Predictive Value of Prediction Markets
Prediction markets are emerging as a more reliable gauge of electoral outcomes than traditional polling methods, which have often proved inaccurate. Recent trends indicate a strong likelihood for Donald Trump to win the upcoming election, though skepticism about data manipulation persists. For an election to ensure confidence in the democratic process, a clear landslide victory is crucial to minimize allegations of fraud from the losing side. This reflects a growing discontent with established political norms and emphasizes the need for voters to evaluate candidates based on policies rather than party affiliation alone.
Polina Pompliano, Author of ‘Hidden Genius’ and Founder of The Profile, and Anthony Pompliano, Author of ‘How To Live An Extraordinary Life’ and CEO of Professional Capital Management, discuss why bitcoin is going up, why the mainstream media reports don’t matter, Goldman Sachs S&P prediction for the next decade, Elon Musk, and prediction markets.
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Pomp writes a daily letter to over 265,000+ investors about business, technology, and finance. He breaks down complex topics into easy-to-understand language while sharing opinions on various aspects of each industry. You can subscribe at https://pomp.substack.com/