Anthony Pompliano, the co-founder of Morgan Creek Digital, considers that altcoins will eventually be worthless in the future. As he wrote in a recent tweet, as there will be no liquidity, they will ultimately get delisted from exchanges. Nevertheless, some of them may be able to survive.
Anthony Pompliano Bearish On Altcoins
The co-founder of Morgan Creek Digital said that altcoins will eventually be delisted from exchanges and become worthless. As they lose liquidity, they would not be able to attract the attention of users, which will ultimately end with them being delisted from exchanges. However, he left open the door for some of them to be able to succeed in the future.
Furthermore, he said that central bankers went from unaware of digital currencies to asking for one of them as a global reserve currency. In this tweet, he was referring to the governor of the Bank of England that said that the U.S. dollar is too dominant and it could be replaced by digital currency.
As reported by The Guardian, the Bank of England Governor says that stockpiling dollars became a barrier to global trade.
On the matter, Mark Carney commented:
“The dollar’s influence on global financial conditions could similarly decline if a financial architecture developed around the new [digital currency] and it displaced the dollar’s dominance in credit markets. By reducing the influence of the US on the global financial cycle, this would help reduce the volatility of capital flows to emerging market economies.”
Several central banks, including the Bank of England, have been analysing the possibility to issue a Central Bank Digital Currency (CBDC). These digital assets would work as a virtual extension of their respective fiat currencies.
Regarding altcoins in the cryptocurrency market, they have been underperforming compared to Bitcoin, that has been in a bull trend since the beginning of the current year. While some digital assets such as Litecoin (LTC) and Binance Coin (BNB) were able to register large price increases during the first part of the year, in the last few months these digital assets have been lagging behind Bitcoin.
Indeed, Bitcoin’s market dominance surged to a multi-year high after being close to 70%. Currently, Bitcoin is being traded around $10,017 and it has a market cap of $179 billion, according to CoinMarketCap.
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