The Pomp Podcast
00:06:36 · Jordi Visser
[00:06:36] S2: So I'm gonna go, I'm gonna take what you said, but I'm gonna take it a little bit of a different direction. So when you make a joke, this is bullish, the reaction is is there. So let's put two things into context. Number one, we had Google down 13%. Okay. Google, much bigger than Bitcoin. Not not not as much bigger, but it is bigger. I only bring that up because when you can have Intel down 25%, when you can have Google down 13, 14%, and especially Google, multi trillion dollar company, I think the move in Bitcoin when you normalize it for what's happening in the biggest assets in the world... Let's go the flip side. I mean, Eli Lilly's up 10% in two days. That's a trillion dollar company. So I I think people are just gonna have to get used to the fact that the reason that Bitcoin isn't moving as much as it did before is because volatility is just much lower, and and it's been lower than than than AI names all year. But let's go back to the general thing. I can remember in 1999, coming back from Brazil. This may sound funny to people, but the Nasdaq had all kinds of issues that were going on, and the Nasdaq was very similar to the crypto market, the electronic trading side. I mean, there was the Nasdaq and the New York Stock Exchange. Now they're both electronic, but back then, it was a very different world. And there were all kinds of issues that would happen on the Nasdaq because it was this new system. It was electronic. If a lot of orders came in in a day, would break the system. There were a whole bunch of things that came on. And I kind of equate this the same way for one element. We need things to happen for the system to be more trusted. My main thing now is the banks are involved with crypto. Like, they're not turning around. They're involved in tokenization. They're involved in supporting Bitcoin. It was a very different world during the hackings when Jamie Dimon was saying this was garbage and you'd never be involved. They all have skin in the game now. They're promoting it to their customers. That means that they care about the security and they care to know what happened. That's the way that in the long term, issues like this become bullish because we... There has to be a plan in place to deal with these types of things and make it clear.
00:08:43 · Jordi Visser
So when you mention the ETFs, you don't think BlackRock is spending a lot of time on quantum and a lot of time on these particular things? Of course they are. I heard that this week at a lunch where someone had talked to BlackRock, and what are they gonna do in the event that you've got these quantum companies doing conferences, and they're saying, yeah. We're gonna be able to, break into, Bitcoin by 2028. They're publicly out there saying that now. I know they wanna raise capital because they need a lot of capital to get to the hardware necessary to do that. But regardless, I think this speeds up people thinking about it. And if there's been one negative with inside, I think crypto and let's say Bitcoin, the last four years probably was more about recovery from what happened in 2021, 2022, and not a lot of focus on how do we deal with the security issues going forward from quantum and AI. I think issues like this actually speed up the need for it, and I think the fact that the banks are involved and you've got people with skin in the game that actually have... They have fiduciary responsibilities. There's a big difference between JPMorgan and Binance, but when they're both involved in the same area and they're kind of promoting it from an investment standpoint, I think everyone has to come together. So I'm gonna take the side that this is just a normal maturation process of a new technology that's going through the headaches and that these things can't happen, so we're gonna have to find other other ways to deal with this.
00:10:10 · Anthony Pompliano
[00:10:10] S3: If the volatility on the downside related to a hack like this is so muted, are you worried about the upside volatility in a bull market being more muted as well?
00:10:21 · Jordi Visser
[00:10:21] S2: No. Because, again, my my primary thing from the bull side of this, nobody owns it. And I mean I can say this a million times over, but aside from, you know, the subscribers you have, some of the subscribers I have, institutional people and wealthy people are just not involved in the space. And again, I've talked about this that the only time that I think the true massive bull market occurs, number one, the technology happens and fundamentals start driving it. That's what will be next year's business. Tokenization just continues to move forward. You had a DTCC announcement this week. It... Tokenization is going to happen. That will lead to more fundamentals in the space. Second thing is what Stripe is seeing with the agent to commerce side is only gonna grow from here. It's not even a question. The question is how fast will it grow and when will we start seeing the numbers? And I've learned this with AI. Don't underestimate how fast this can happen if it's in a world where businesses can run it, and then competition just keeps coming from it because the deflationary pressures from these businesses that adopt it are going to be there. So I think on that front, this has been for me about innovation and technology and the combination of AI and fundamentals, and that's what I think the beginning stuff of crypto is. If we learned anything with AI over the last whatever years, you can't wait for the data to be good. We're kinda going through that with the AI trade. When the data really started being good, meaning when we started seeing the earnings, these names were already up 500%, thousand percent, and now they've gone sideways for a period of four months with all kinds of ups and downs. I think crypto is gonna go through the same thing. I will say one more thing on this for people as you go through it. We had a very large rally from 59,000 in Bitcoin up to around the, $87.88 area. I think going back and testing the two hundred day moving average, which is what we're gonna end up doing, I'm sure, and maybe even pierce below it a little bit.
00:12:13 · Anthony Pompliano, Jordi Visser
[00:12:13] S3: What is that? [00:12:13] S2: 73 to 74. Almost got there overnight. I don't think people should just sit there and think that, okay, everything is fine. We went through the hacking. We're gonna turn back up. This has been very correlated over the past month and a half to the AI trade. And whether people accept that or not, a chart of semiconductors now in Bitcoin has been one for one for the most part. The other point of this, which I brought up in a video this week, is a index of oil and tenure rates has also been correlated to it. So I think we've been going through, as I keep saying in my weekly weekend videos, there's been a horrible trading environment from anyone who's trying to sustain moves for longer than say a month and a half. You had to make your money in a very small window this year in the first half of the year, and then since then, it's been a lot of back and forth and just a lot of mud, and that's in all the major assets. I I think we're still in it until we get a catalyst. There may be a catalyst next week with quarterly refunding announcement, but other than that, I think we're just kind of grinding through.
00:13:16 · Anthony Pompliano
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