Morgan Creek Digital co-founder Anthony Pompliano sees a bright future ahead for Bitcoin with Joe Biden-appointed Janet Yellen at the helm of the US Treasury Department.
In his latest edition of The Pomp Letter, Pompliano analyzes Yellen’s past as Chair of the Federal Reserve and how she may counter economic stagnation caused by the coronavirus.
Pompliano stresses that Yellen has not shied away from generous money printing policies, especially in response to economic crises. This instinct could devalue the dollar, creating more demand for store of value assets like Bitcoin, says Pomp.
Pompliano believes that whether or not the dollar is actually inflated, the fear that it will be devalued will cause Bitcoin to rise in price.
“Essentially, Janet Yellen is likely to be Bitcoin’s greatest ally over the coming 4-8 years. She has never seen an opportunity to print money that she didn’t like. She has never seen a situation of high inflation that scared her.
Given that we are currently living during a period of high unemployment due to the coronavirus, it would be my expectation that Janet Yellen will begin pulling out every tool of monetary stimulus to get unemployment lower.”
Pomp specifically cites Yellen’s response to the early-2000s housing bubble, which formed around 2006 and 2007.
According to the Morgan Creek co-founder, Yellen not only tends to ignore economic bubbles for longer than her colleagues, but also responds to them with monetary stimuli.
The ex-Federal Reserve Chair argued against ‘bursting’ the housing bubble in 2005, allowing it to balloon further and later defending the $3 trillion stimulus used to counter the negative effects of the housing crisis, says Pomp.
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