Anthony Pompliano, a longtime Bitcoin (BTC) advocate and entrepreneur, asserts that crypto industry participants are underestimating the extent of the harm caused by the collapse of FTX and linked organizations.
Pompliano informs his 1.6 million Twitter followers that after the FTX scandal, institutional investors see the whole cryptocurrency business as polluted.
From what I’ve heard in the past day, the harm this week has done to institutional interest in Bitcoin and the crypto space as a whole is vastly underappreciated.
In my view, Bitcoin will not only survive but prosper in the future. “However, we cannot deny the reality that this week was a setback for everyone, regardless of their position in the sector.”
According to Pompliano, investors have lost faith in cryptocurrencies, and “the greatest capital pools in the world are aware that the business is not yet ready for prime time.”
However, Pompliano emphasizes that the loss of investor confidence in the larger crypto ecosystem will attract more watchers to Bitcoin, attracted by its simplicity and resilience.
Markets return to Bitcoin after the crypto industry’s confidence game is done. There is no other escape route. There is no Bitcoin bank run. In times of disorder and unpredictability, people need trust and safety.
Even more importantly, he believes that the recent failures of some well-known cryptocurrency companies, such as FTX and digital asset hedge fund Three Arrows Capital, will cause investors to look beyond short-term price fluctuations and instead at Bitcoin’s potential as a decentralized payment network.
“Bitcoin maximalists are now being created every minute.” There are freshly converted users of self-custody appearing everywhere.
This is a regular occurrence in the cycle. In our darkest hour, Bitcoin ascends to prominence. It delivers the answer. It resolves the crisis of confidence. Several blocks of transactions. The digital payment network continues to provide a long-term savings technology that enables anybody on the globe to save their buying power for decades.
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