Top Crypto Investing Strategy into 2022 | Anthony Pompliano on Bitcoin vs Ethereum vs Altcoins

i would just go for it man i would try to 
drive as much cash flow as i possibly could   and i would take every kind of asymmetric bet 
that i could find um and so those asymmetric   bets like i i just i don't know of an industry 
nearly as asymmetric as kind of the bitcoin and   crypto world bunch of different ways to play it 
but it just feels like you know yes i'm biased   i just don't see anything else that's 
even close to how asymmetric it is welcome back everybody to altcoin daily my name's 
austin here with aaron awesome guest today you've   seen him if you're on crypto twitter we have 
anthony pompliano founder of pomp investments   and host of the best business show streaming 
live every weekday right here on youtube links to   pomp's channel down below man thanks for joining 
us absolutely thanks so much for having me again   for sure for sure you're in miami now the crypto 
city i i am here and enjoying it not going back   nice is it is it what they say the cryptocity or 
are those just headlines right now look i think   it's a a city where people who are innovators 
entrepreneurs problem solvers etc they feel   energized when they come i don't know if it's the 
weather i don't know if it's the people i don't   know if it's kind of a different perspective from 
the uh political regime uh it's hard to put your   finger on one single thing but i definitely think 
that the folks who are moving here they're serious   um they tend to be pretty well respected they've 
got access to capital uh they've got influence to   get other people to move here and uh you just 
see it in the numbers right both from uh the   movement of people but also in the success stories 
everything from you know non-uh bitcoin or crypto   businesses to bitcoin and crypto businesses and i 
think that that trend will only continue over time   cool and i want to then dive right into it big 
picture just so everybody can get to know you   at least half of your portfolio is is in bitcoin 
what was your investor's thesis for making that   decision and then also how is that different 
from when you invest in non-crypto companies   yes so uh i look at it looks like my liquid net 
worth um and uh it's over 90 percent easily uh   is in uh bitcoin um there's basically two 
big decisions that i made one was in december   of 2018 happened to be the bottom of the last 
bear market uh i put a considerable amount in   and then uh kind of right after the really hard 
part of the pandemic in march of last year i can't   remember if it's april or may sometime in that 
time frame i was like all right like i'm going   all in on this um and so it's worked out very 
well you know kind of in hindsight everyone's   like oh that was a really smart idea did not 
feel so simple at the time uh actually pretty   scary you know one day in march bitcoin's falling 
50 percent in a single day and i'm like trying to   like should i buy more like hold on to the last 
few dollars i have so i'm not you know literally   at zero um and i think in investment thesis 
was pretty simple you know initially it was   uh this is going to be a global store of 
value and it is likely to be um very much uh   undervalued today and will be more valuable in the 
future what that looks like i didn't know but it   was just kind of long-term trend tailwinds uh all 
line up when we got into 2019 i started to think a   lot more about bitcoin's relationship to the macro 
environment and i wrote publicly a couple of times   basically saying look i don't know when this ends 
but we're in a historic bull market they're signs   of kind of late stage capitalism what that means 
was a lot of ceos leaving their jobs a lot of uh   kind of gyrations in the repo market inverted 
yield curves like things that just naturally   tell you like hey we're coming towards the end the 
end could be two years away or could be two months   away or two days like nobody knows um and so my 
thought process at the time was it's interesting   because it's starting to line up with this bitcoin 
having that was going to occur you know sometime   in 2020 kind of middle of 2020.

And so if there is 
a market turnover in the in the traditional market   the central banks are going to have to step in 
they're going to have to manipulate interest   rates down they're going to have to print money 
we're addicted to the stimulus uh and if that   happens around the same time as the bitcoin 
having like that could serve as rocket fuel   for bitcoin um i had no clue that a pandemic was 
coming i had no clue that they would be willing to   do emergency rate cuts to zero i had no clue they 
would print trillions and trillions of dollars   uh but the general thesis played out right there 
was kind of a turnover of the market they did step   in and it all somewhat coincided with with the 
having um you can you know is that probability   at play is that uh i have some crystal ball i 
tend to think that it's much more the former   than the latter uh but what ultimately happened 
was when they stepped in it became obvious they   were going to print a bunch of money people go 
looking for a store value asset and you had a   bunch of institutions and now public companies say 
i need to not hold just dollars i'm not going to   convert 100 into something like bitcoin or even 
gold but i need to hold other assets other than   just cash and so that influx of new demand ended 
up pushing the price up pretty significantly   uh and we went from you know called 80 400 or 
so at the having to it topped out at 64 000 in   march or april we're back to about 45 000 i think 
we'll go much higher through the rest of this year   so at that point do you rebalance ever or is now 
forever you're just portfolio 95 bitcoin uh you   know it's something i'm actively going through 
right now uh there's definitely not gonna be any   rebalancing uh in terms of you know hey i need to 
sell some bitcoin to like invest in something else   um i think that uh there's basically a decision 
that i have to make which is do i buy more bitcoin   or do i take my foot off the gas and like invest 
in other assets uh it's pretty hard when you look   at like should i buy more bitcoin or should i 
buy a piece of real estate like those have two   completely different uh profiles both from an 
upside case and also a risk mitigation case and   so any decisions that i make would make outside 
of like buying bitcoin i think would be much more   focused on risk mitigation uh more so than like 
oh i think this other asset's going to go up more   um you know i joke all the time that uh in the 
traditional financial world i'm like the largest   risk taker anyone knows right like oh my god you 
like put all of your money in bitcoin and then i'm   like well in the crypto world i'm like the most 
conservative person anyone knows they're like you   only hold boomer coin and so i live at like the 
intersection of these two worlds which is actually   probably if you think about it like a pretty good 
place to live uh in terms of uh i understand the   extremes of each end but i kind of sit in 
the middle and i'm kind of comfortable there   um and so really it's not just like a risk 
mitigation thing but you know in some weird way   holding bitcoin is the risk mitigation to you 
know as well which you know again sounds crazy   to some sounds conservative to others so just 
kind of figuring it out alongside everybody else   i love it guys if you appreciate pumping on this 
podcast smash the like button um pumps the man   uh you know this is what i was wondering 
you know we were right there with you   in 2020 and as we got into this bull market i 
remember right after bitcoin broke over 20 000   you know things started to change probably 
like starting in like january of this year   so like in the last six months what surprised 
you the most in this cryptocurrency bull market   um i think there's a couple of things uh one 
the severity of a mid bull market drawdown so   they happen historically they've been closer to 
like 30 more so than like the 50 plus percent   drawdown that we saw uh some of that is you know 
in hindsight it becomes obvious like there's a   lot of leverage in the system people got you 
know excited and thought we're going straight   to a hundred thousand dollars obviously as 
you see with the hat you know you can tell   where i think it's going still um but in terms 
of uh that being a surprise for sure like that   the severity or the depth of the drawdown uh two 
is the reminder but also a surprise of just how   much institutions have like weak hands and not so 
much from a the institutions that bought bitcoin   sold it but more so how quickly the institutional 
interests cooled off even to the point where   multiple institutions were like in the middle of 
preparing to buy bitcoin or invest in companies or   do something and they basically just like 
hard right hey i'm not going to do this   uh and so price really really has like a pretty 
big sentiment impact on those institutions uh so   again the severity of it i think was a surprise 
and the last thing i would say is um when you   go into the beginning of a bull market there's 
a relief element i think to people who've been   around for a while of a lot of the like toxicity 
and tribalism kind of uh dissipates a little   bit and it's almost like you know when everyone's 
winning uh everyone feels better everyone's nicer   you know people are kind of more cordial etc uh 
and so when you get kind of a head fake a little   bit of like everyone thinks we're in this massive 
bull market all of a sudden you get a deep draw   down and yes we probably have a continuation of 
the trend but it's surprised people are caught up   you know a little off guard um you just get the 
toxicity back right and it comes from everybody   it's it's not one group or or whatever um and i 
think that like for somebody who generally just   tries to live a life that like pursues like i just 
want to be happy uh it's like taxing right i mean   it's just like you know you kind of get people 
who are obviously being disingenuous you get   people who are trying to be inflammatory whatever 
and so uh i think that you know it shouldn't be a   surprise but no matter how many times it happens 
like it's always like man people can really   uh get emotional um and if you can recognize it 
and have kind of the i think the uh the emotional   control to see that it's happening uh it's a data 
point in the market right you might not be able   to act on it or like do anything different 
than what you were going to be able to do   but you can definitely kind of feel when people 
are on edge versus when people you know the the   laser eyes and and all of that definitely has a 
different feel to it than when people are ready to   you know jump through the computer beat each 
other up for some you know for some reason   totally i mean not to the same degree as you i'm 
sure but you know we we feel that too and it just   you put yourself out there enough and people like 
some people think you're a bitcoin maximalist some   people think you're an old corner just like you 
can't please everybody and the bigger you get   the uh you know most people are cool actually 
but it's just like the small percentage of people   who uh just start trolling but uh well and real 
quick just add to that i also think it's not so   much like sure i mean people say crazy stuff to me 
i'm sure they say crazy stuff to you guys as well   uh and so there's like when you put yourself out 
there you almost are asking for it like you expect   it i think the part to me that's surprising is not 
that right i i almost expect it unfortunately uh   the part to me is when you see uh folks that like 
you respect attacking other folks that you respect   and it's more of the like um you know kind of 
inter in industry fighting that um everyone   succumbs to at some point like there's a bunch 
of emotion everyone thinks they're a genius like   i fall victim to it just as much as anybody else 
but if you can remind yourself like humans are   really bad at producing the future humans are 
super tribalistic like get away from that stuff   and you can kind of look at it from the outside 
a little bit i think it just changes the way that   you view those actions and so you know i don't 
know how much you guys weigh a lake uh way away   lay awake at night and expect people to attack 
you right i don't necessarily do that but when it   happens yeah you know okay it's more so like the 
people who don't expect it are caught off guard   and then like really upset by it like that to me 
i think is the part that really was surprising   for sure guys in the audience this is the 
one time say whatever you want to pump   say whatever you want to us in the comments below 
we'll read it this one time but after that you   know you're cut off my final question just in this 
like the last six months part did it surprise you   or make you think when uh bitcoin's dominance 
uh dropped and projects like ethereum and just   other crypto assets started to gain not only 
market dominance but also favor and popularity   i don't think it was surprising i actually 
think it was expected right so one of the   things that i always go back to is if you 
were to look for short-term economic upside   any market these small cap assets will outperform 
the large cap assets when there's a industry-wide   bull market so if you look at stocks for example 
if all technology stocks go up for the most part   not not every single example but for the most 
part small caps will do better than large caps   just because you get kind of the tailwind uh and 
then the market structure takes over and so that's   no different in uh i think the crypto industry as 
well where you expect uh small caps to outperform   the large caps now part of the challenge in 
doing that and why everyone who's optimizing for   short-term economic gain doesn't just go by you 
know whatever small cap is it's not every single   one and it's really hard actually to underwrite 
some of the small caps because for every you know   one great one there may be two bad ones or two 
that go to zero or scans or rug poles or all   the complexity that comes with that so i do think 
that uh there should be um kind of understand the   market structure and small caps outperform large 
caps the second thing is also there's just so many   of them coming online right i think of that a lot 
like as like a market cap dilution metric and i   don't know exactly how to measure it but if it's 
bitcoin and ethereum regardless of the size like   just naturally if you split it up equally bitcoin 
would have 50 and the theory would have 50 but   then if it's bitcoin plus 4 000 7 000 10 000 other 
coins like how long can one just hold uh you know   majority right and so i do think that there's like 
this dilution component now what's fascinating is   when people have this conversation i think that 
they uh they want to think about the whole market   but really what they want to talk about it's like 
bitcoin versus ethereum and kind of the market cap   dominance um and there's a couple of different 
ways to look at it one is uh bitcoin long term   is going to be the most durable asset it's the 
one that is likely to soak up kind of the most uh   value and so therefore it will remain the market 
cap majority uh from a dominant standpoint uh   another argument would be maybe this on the other 
end of the uh extreme is that uh ethereum actually   will flip bitcoin from a market cap standpoint and 
how you could get there is that literally there   is unlimited printing of the asset people don't 
care right i mean you can make their own people   don't care about the us dollar being unlimited 
uh they continue to adopt it and therefore just   naturally as you put more into the market right 
you end up getting this now there's nuance here   obviously there's burning of eth now there's pos 
there's all this kind of different stuff that that   uh you know we're kind of working through it 
and frankly nobody knows how it all plays out   what i think is true is that uh there is a free 
market that has laid significant value i don't   know maybe we say like things that are valued 
at over 50 or 100 billion dollars today that   have a much much higher likelihood of persisting 
over a long period of time than things that aren't   you can move from you know what's called smaller 
mid cap to a large cap but i don't foresee in the   short term any of the large caps going away um and 
so then it starts you start to ask yourself like   what are you optimizing for and i think this is 
part of what gets lost in the nuance of twitter   is like if i wanted to optimize for the greatest 
short uh economic gain i would just go trade and i   would like buy all these other things and i would 
go and i would you know invest in all these like   uh pre-launch tokens and like and i would play 
the game that some people are playing they're   optimizing for a short-term economic game and 
they likely will be some of the best performers   from a financial investing standpoint right for me 
it's not about that like at this point it's um the   incremental dollar doesn't really change my life 
like i live a pretty normal life uh um and there's   almost this element of like if i got out of bed 
every day i was just like how do i make more money   it's like not a fun life right like there's like 
kind of like no purpose to it to some degree   um and so instead uh i think more about like the 
impact with the meaning more so than the dollars   uh or the bitcoin or you know eth whatever 
you want to denominate your your life in and   i really think the most important technology   uh or one of maybe not the most important 
depending on how you kind of count here but but   uh i would definitely put it up there as one of if 
not the most important uh is the idea of bringing   purchasing power protection to the world right and 
if you just look at wealth inequality most of the   efforts that people have undergone in the world 
is all band-aid type solutions so let me give   you money oh let me you know give you resources 
let me uh provide food for your local community   etc but ultimately what it all is driven by is the 
devaluation of the currency right rich people have   gotten way richer and poor people have gotten 
way poorer over time and so if you're able to   basically think from a first principle standpoint 
the way to fix those problems is to actually fix   the debasement of the currency now i believe that 
the central bankers around the world know this   right they're not i mean they're actually 
very intelligent they really really understand   understand the intricacies of the market and what 
they've chosen is a trade-off they've said look   this is worth doing because here's these other 
advantages we get right and so i think that what   you're seeing is a new generation of people 
who are coming of age that are saying i don't   think the trade-off is worth it and again we'll 
see how the world plays out but for me that's   really my focus it's just how do we get more and 
more people to understand this store of value   and we'll kind of see how it plays out but if we 
can get more folks to adopt the store value or   kind of the savings technology i think you can 
have a really really kind of outsized impact   uh from an economic standpoint on billions people 
around the world and like that gets me excited   much more than you know how do i eke out another 
five percent uh you know get some extra cash   well let me give you a follow-up to the whole 
bitcoin versus e because they are going for two   different things and knowing that the entire point 
of a blockchain is just you can have censorship   resistance so obviously the use case of money 
that's obvious we need censorship resistance   but for example nfts maybe not as important in 
the hierarchy um because they're sacrificing   some speed for censorship resistance so do 
you see these less important use case change   i'm not saying it's less important that's just 
a word i'm using for this question but like the   eats like the cardanos do you see the uh less 
important use cases i should say like nfts going   to those some of those other chains yeah so what 
i would say about this is uh there's basically   two groups of people that uh really have to answer 
this question right and i always chalk this stuff   up but like my opinion frankly doesn't matter i 
don't spend a ton of time uh in these ecosystems   and so like i'm like the worst person to probably 
ask about it but uh i'll be the idiot in the room   and kind of offer my two cents uh it matters to 
me look at it um and so the first thing is like   the developers right the people are actually 
building the technology if we want to start a   company together and it's not anything to do 
with crypto blockchain you know bitcoin etc   we would have to decide okay we need a database 
what database technology do we want well either   we would use personal preference something we're 
familiar with something we've used in the past   or we would make a choice based on some 
technical functionality that it had   to do the job that we needed to do and so i think 
that is um kind of uh the developer point of view   right uh or at least the majority of them the 
second thing is like the end user which is you   know use the internet as an example 99 of people 
couldn't tell you the protocols the internet's   built on they don't care all they know is that 
email works and they can google things and like   the end product the application interface is what 
they care about not so much like the underpinnings   or the infrastructure um and so when you put those 
two things together uh one of the major questions   and i actually don't think i have an answer i 
don't think the industry has an answer yet it's   like how important is decentralization to the 
developers that are building non-bitcoin related   things right and so the reason why i present 
it that way is if decentralization is important   i would argue that those things will flow to 
bitcoins the most decentralized it's the one   that continues to head pretty unequivocally in the 
direction of more and more decentralization over   time um and it also has the most decentralized uh 
kind of adoption from a user-based standpoint etc   i think that the industry wants to believe that 
developers really care about decentralization um   but i actually question whether that is true for 
a lot of these applications and i'll give you a   good example is if you look at let's say ethereum 
vs finance smart chain i think for the most part   again the people will disagree but but for the 
most part people will say ethereum and binance   smart chain are both smart contract platforms that 
are on the opposite end of the spectrum of smart   contract platforms right and binance basically 
said this is a great idea smart contract platform   we're just going to make it super centralized 
really efficient have high throughput and low fees   and ethereum said well we want some level of 
decentralization again it could be a spectrum   you can argue over as a decentralized map let's 
just say that one's decentralized one centralized   one has cheaper fees and higher throughput we saw 
a lot of developers just move over that wasn't   all of them right it wasn't every application 
etc but we definitely saw transactions and   developer activities move over to that so that 
would from a market dynamic standpoint suggest   that those developers didn't care so much about 
decentralization as they wanted high throughput   low fees and so i think it reminds us of a 
question of like centralization is actually really   positive for a lot of things like the entire 
industrial revolution and the entire like business   environment we know of is built on centralization 
why because people pursued efficiency what's the   most efficient system build a centralized 
hierarchical structure that gives people   the top a ton of leverage around capital and and 
human uh resources and like let them build things   we get amazon and same-day shipping and like 
all these amazing things because they built a   centralized hierarchical structure could you 
do the same thing with decentralization maybe   but no one's done it before so like that's still 
a question and so i think that what ultimately   is going to play out here is developers 
are going to ask i have to ask themselves   if i have to make trade-offs between 
decentralization and efficiency which   there's still debate whether you have to 
do that or not but let's say that you do   which side of the spectrum do i want to be on and 
how important is full decentralization versus okay   not one person controls it but maybe a thousand 
people control it or 100 people control right like   where is the line so a lot of unanswered questions 
i don't have the answers but but i do think that   um that's one framework the second is if you go 
to the users um i don't think users care at all   i literally don't think users care and actually 
i think that the fact users don't care about the   underlying technology is a sign that majority of 
the applications that are being built today on top   of blockchains are not going to be around 10 15 
20 years from now and i'll give you the kind of   historical example was in the late 1990s all of 
the ideas on the internet were good ideas music   streaming food delivery you know all that type of 
stuff but none of it actually worked and persisted   over a long period of time it wasn't until maybe 
the mid 2000s into like really like around 2010   that's when we really got spotify and uber and 
airbnb and like all those same ideas now we're   coming back it was one infrastructure got built up 
more two you had much more mainstream adoption of   things like the internet cell phones etc uh and 
then three was entrepreneurs had figured out they   had a decade basically worth of learning as to 
how do these technologies work and how do we build   consumer interfaces that people want people don't 
care in that world in the web 2 world about the   underlying technologies just want to know like if 
i press the button on my phone does a car show up   or not for uber okay if it does then it works if 
not then you know i'm going to use something else   and so i think that there is this world where 
if you compare a web 2 product today take an   uber and airbnb to some of these like web 
3 or decentralized finance applications etc   it feels like 1990s internet right like 
it literally feels like aol dial up and   like and you could just tell it's like clunky 
and you're like oh the functionality is cool   but this isn't yet a polished product that 
like i could see the mainstream adopting and   so in some crazy way uh i do think investors who 
are paying attention right now they're learning   they're putting capital to work in the market 
but they understand that they may be paying for   learning and it may be another five or ten years 
before we start to get those polished products   that end up being like the really big global uh 
globally adopted kind of multi-trillion dollar   opportunities uh as long as you understand 
that like you'll have an advantage when those   opportunities come because you'll have the context 
you just got to make sure you don't get locked   into this idea of um oh i've seen somebody try 
this idea ten times and so the eleventh time no   it's gonna it's not gonna work right google was on 
a 20-something you know search engine facebook was   not the first social network you kind of just go 
down the line and so you gotta have the context   and be willing to be just as enthusiastic and 
open-minded and kind of ambitious and optimistic   on the 27th try as the first one if you believe 
that that you know opportunity exists in the world   totally and uh you know props to you um i listened 
to your pomp podcast and i really liked i think it   was around 2020 going into 2021 i noticed a shift 
you started bringing on some people who might be   bullish on ethereum or just interested in d5 just 
to learn just to be like you know this isn't going   away what's going on so i appreciate getting that 
knowledge from you and once again guys uh the best   business show pumps new youtube channel everybody 
needs to subscribe to that linked in the same   youtube channel yeah same youtube channel you can 
listen to them both but the the best business show   is the one you need to clock i guess you know my 
final eat question it's just kind of like general   is um because you know that's totally cool you 
said you're more interested in something um you   know long-term investments you're not interested 
in the uh smaller caps i'm sure you have read this   um but like have you ever like i'm sure you've 
seen ethereum investment thesises like the two i'm   thinking of are kobe from up only went on uh three 
arrow capital ceos on common core podcast gave   his eth investors thesis uh twitter handle squish 
chaos uh gave a long report alleging that ethereum   could hit like 73k by 2023.

It's not about the 
number that's arbitrary it's more about the   reasoning like you said like a lot of these bigger 
caps aren't going away anytime soon what do you   think about the ethereum investors thesis going 
into each 2.0 and maybe a couple years after that   again it goes back to uh what are you optimizing 
for right and so if you're simply optimizing for   what is going to go the highest the fastest right 
i talk a lot about like this barbell strategy i   have so bitcoin let's say that that's the most 
conservative asset in the industry it's the most   durable it's the one that people believe uh is 
most likely to be around for the longest time   but from a upside like volatility standpoint super 
volatile compared to traditional assets actually   not nearly as volatile as let's say the long tail 
of other things and so if you're optimizing for   durability and almost protection of your wealth 
bitcoin is this amazing thing and oh by the way as   the world reprices it like it will likely do very 
well as well from a a us dollar return standpoint   if you want the greatest upside like forget ether 
or anything in like the top 10 like just let's go   to the coin casino right like and and not in 
like a a negative way it's just like if that's   your game it's like hey how do i get a thousand x 
right there's things that are way out on the long   tail that are much more likely to do that than 
i would say kind of these things in the middle   um and so i don't actually believe most people 
are willing to do that right i don't think people   are willing to go and make like the casino bet 
on thousand x's consistently because one out   of every hundred works and people have the stomach 
uh to survive 99 losses right like a lot of people   think that they can do that but they can't and 
so when you think about something like ether i   think that what ends up happening is uh there's 
my understanding three separate investment thesis   that people have one is like it's like i'll call 
like the world computer thesis right everything's   gonna get built on top of it et cetera the second 
is um what i'll call more of uh like an ultrasound   money right it is kind of the uh the meaning 
that's used there and then the third and it's   related to the first two but but i would put in 
a separate category is like a market structure   right hey a bunch of people are staking this we're 
burning and so like the the uh kind of supply   squeeze thesis that people talk about with bitcoin 
like could happen with e and i actually think that   eth could go up and all three could be invalid 
right like the world computer could not happen   uh the ultrasound money could not happen 
and the supply sh you know squeeze couldn't   happen could not happen and ethel still go up 
because institutions just say hey this is the next   uh you know second biggest asset so if one 
goes up the other one will go up so i'll buy   right or it could go up because the other three 
things are all true or one of the three things   is true whatever and so to me it's less about 
like is one individual thesis correct and it's   more so when you take the totality of um 
of all of the thesis and you look at them   and ask yourself is it a probability that eth 
will go up in the future i just back out and i say   i don't think there's very many things in the top 
10 that are going to go down in the future like   like to me it's just the tailwind of the market 
ends up taking over and so of course ethan's   in there now one thing that i do think people 
in this kind of investing world it's a little   bit more it feels like more like wall street 
when people are talking about like investing   uh in liquid assets more so than like the venture 
capital community um one of the key things that i   apologize i don't remember who said this but 
i think it's so uh so good is you know when a   bad team meets a good market the market wins and 
when a good team meets a bad market the market   wins and so it's the same thing here which 
is just i actually think the sector bets on   crypto or bitcoin encrypted however 
you want to describe this whole world   is just so ridiculous like strong tailwind that if 
you look at it over a long enough period of time   you know you're gonna have to have been 
pretty bad at investing and made some   like pretty significant mistakes uh to 
have not benefited from that tailwind now   if you don't follow timeless investing principles 
you can blow up tomorrow right but if people are   basically building any level of risk management 
into it if they're having long time horizons   they're not trying to be a day trader if 
that's not their specialty or whatever like   all of that stuff i think will work to their 
advantage and so bringing it back to eth it's like   i tend to think there's just a hard argument as 
to like why the price won't go up and i actually   don't hear even like the hardest core bitcoin 
believers in the short to medium term i don't   hear uh or i don't think anyone has told me that 
they believe is gonna go down in the short to   medium term so it ultimately then goes to like 
well where is the real debate right and i said   something actually on twitter this morning i said 
you know i haven't heard anyone ever say isn't   a 350 billion dollar network like no the market 
decided that's what it's worth right at the moment   and so i think it's it's hard to debate like facts 
in in the in uh the current time where the debate   happens what's going to happen in the future so 
the proponents of ethel say things you know around   uh proof of stake they'll say things around uh 
the burning of eth and kind of all of the upgrades   they'll say things around staking or other things 
that we built on top etc the critics will say oh   that's bad or you know either it's going to 
become centralized or the burning it you know   isn't guaranteed forever or there's a 
variable monetary policy like all this stuff   i have no clue but like i have opinions in terms 
of you know the likelihood of the incentives right   where eve has to pursue efficiency because it 
has to compete with so many other smart contract   platforms and ultimately performance will end 
up being more important than decentralization   but like who am i i i don't know right 
and so when you get in that world uh   to me that is a world that's really really 
hard to kind of unpack uh and so i just choose   not to participate like it's not intellectually 
interesting to me i don't spend time thinking or   reading about it and so like if i'm not willing 
to spend mental energy on it why would i go spend   capital energy on it right and so it's like you 
know i mean you guys see what i tweet and talk   about all day it's like literally i think about 
bitcoin all day long and so of course your capital   is going to flow kind of like your your interest 
or your your mental energy but if somebody said to   me hey i think eth is going to go down tomorrow i 
would have a pretty hard time you know reconciling   uh the like almost like a security selection with 
the industry tailwind like those two things would   seem to be at odds with me and that's true 
of you know most of the uh of the large caps   what you said is true you know a huge bitcoin 
proponent uh you know it's awesome whenever   you go on cnbc or or tweet about it but i do 
happen to know that you are a reader of the   defiant newsletter and the defiance podcast i'm 
an investor i know i don't know if people do that   yeah i'm an investor i think what uh what she's 
doing is amazing she by far is probably from the   beginning been the absolute best at covering all 
of uh of that kind of sector of the world totally   that's why i just assumed you read it but anyway 
go go ahead awesome in our final five six minutes   we have a couple big picture uh crap questions 
this next one doesn't necessarily have to do with   cryptocurrency although it could more critical 
thinking more fun let's say you were starting   over today with just a thousand dollars to your 
name how would you go about accruing wealth to the   level you currently are like some practical steps 
oh i'm poor all my friends are rich i got friends   they were way richer than me damn they're they're 
killing it all right for those guys then yeah uh   what would i do i think the the two components 
let's start there maybe would be one i would   look to see how i could drive cash flow um and 
then two is i would look for uh investments that   fit the risk profile and it would really depend 
on if i was younger if i was a little bit older   and like kind of what my responsibility you 
know am i married do i have kids do i have   other you know student loans whatever but if 
it was kind of look you have no downside risk   that you need to worry about and no kind of 
responsibilities you're like a 22 year old kid   uh i would just go for it man i would try to 
drive as much cash flow as i possibly could   and i would take every kind of asymmetric bet 
that i could find um and so those asymmetric   bets like i i just i don't know of an industry 
nearly as asymmetric as kind of the bitcoin and   crypto world bunch of different ways to play it 
but it just feels like you know yes i'm biased i   just don't see anything else that's even close 
to uh how asymmetric it is so i think you just   have to go in and then the other thing too is 
if you're optimizing for pure economic return   like there's all kinds of crazy stuff you could 
do um yeah we see all kinds of these projects   that uh what what's the axiafinity like the delphi 
digital guys were telling me about this uh a while   ago and it was at like five or six dollars and i 
see you know it's literally at you know 60 bucks   right and like one they're like the best 
investors in all of d5 by far uh but two is um   that's just not normal in the traditional market 
like the stock market would shut off trading of an   asset that was doing stuff like that right they'd 
be like all right timeout like something's going   on here and so there's a moment in time where 
there's incredible wealth being generated across   the entire industry and so i generally think that 
if you want to accrue wealth and other people are   getting rich you should go and participate 
where they are and it may be a bubble it may   be unsustainable but there is an element of not 
being able to predict the end of the bubble or   predict the end of that kind of uh insanity and so 
yeah i think it's like bill gurley it's just like   the best time to stop investing in a bubble is two 
years after it popped because like literally like   it just goes on way longer than you thought 
it's way bigger than you thought it could be   and uh um and from a pure financial return 
standpoint like actually probably pretty good   you know people in 2016 thought the stock market 
was a bubble was gonna correct like imagine if you   stopped investing in 2016 like you missed you know 
so much of the gains in the stock market right   and just as a follow-up and maybe 
already cover this but let's say you put   80 in bitcoin or that asymmetrical upside you 
know that 20 percent i'm just looking forward   to like practical examples of some other 
things gaming you said is one yeah so uh   infrastructure is like the short answer um you 
know a lot of the things that i've invested in   whether they are true companies or they're 
more like in the decentralized side um you   know so take something like uh a risk harbor a 
sovereign um take even something like a block fi   etc each one of these actually ends up being uh 
kind of an industry infrastructure bet because   they're able to okay we support these assets 
we're gonna add more in the future if one ends   up not working then like we're fine because we 
support you know kind of multiple assets and so   i think a lot about just if you ask me what's the 
highest conviction thing that i have that i know   is this industry will be way bigger 
in the future than it is today   all the details matter but they matter less 
than that one that one uh important point   and so like how do you invest where you win if 
you are right um the industry will be bigger   we'll go find infrastructure and invest 
you know there uh and it may not be the   highest returning in terms of there's always going 
to be you know that altcoin that goes up whatever   amount but to me it's the venn diagram of it's 
the most repeatable sustainable kind of durable   strategy with good enough returns right you know 
bitcoin i don't know it's compounded like 200   uh annually for a decade there's nothing 
in the traditional world that's doing that   and so sure is something else going to go up more 
maybe but like yeah just don't be greedy totally   um okay you know i don't have any final 
questions uh ladies and gentlemen in the audience   uh like we agreed pomp will be reading some 
of the comments correct pomp yes i'll read   them you will read comments so this is your one 
chance if you think there's a good you know year   two year shorter term play in cryptocurrency let 
them know if you liked him in this uh interview   let them know in the comments smash the like 
button and definitely check out the best business   show pumps youtube channel on the anthony pompiano 
youtube channel pomp thank you so much for coming   on final words for you to give to our audience 
i appreciate you guys doing this i i appreciate   anyone who takes the time to it to learn about 
us keep doing your your great work thanks mom you

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