On Tuesday, American investor and Shark Tank star Kevin O’Leary attacked Anthony “Pomp” Pompliano, co-founder and partner of Morgan Creek Digital Assets, while he claimed that 50% of his net worth was Bitcoin.
Both were invited on CNBC with host Melissa Lee to debate over bitcoin’s role as a “safe haven.” Pompliano replied, “For decades, financial institutions have been looking for non-associative assets that can be used to diversify their portfolios. Over the past year, we have been saying that bitcoin is a non-associative asymmetric asset. You can observe the global During periods of stability, such as May, we faced a tariff threat, and the trade war was tense when Bitcoin rose 55%. Bitcoin was negatively correlated with global events, and I think we will see this.”
Lee then asked Pompliano whether the rise in bitcoin prices in the past few days was due to a currency war between the United States and China, whether the price increase was due to Chinese investors buying bitcoin as a hedge, or because other investors bought bitcoin (thus pushing up prices), because they think there will be “funds flowing out of China.” Pompliano believes that both are possible.
O’Leary admitted on the show that he was skeptical about cryptocurrency. He said that he bought a $100 cryptocurrency with a try-ahead mentality at Harvard Business School about two years ago, and now only worth $30.62. He asked Pompliano why this was the case. Pompliano’s answer is that most of the unforeseen losses are due to poor performance of the coin.
According to Pompliano, Bitcoin is the only cryptocurrency worth investing in. When asked how much bitcoin he invested, Pompliano replied that 50% of his net worth is bitcoin.
O’Leary seems unable to accept this answer: “It’s too crazy! It’s definitely against the principle of diversified investment…”
On this issue, Pompliano asked O’Leary how much of the current net worth is in the stock market. O’Leary stated, “In any one stock, never more than 5 percent, in any one sector, never more than 20 percent.”