Pompliano Presents Gold, Bitcoin as Last Line of Defense..."Government Default Cannot Be Weathered with Cash"

▲ Gold, Bitcoin

Amid growing debate surrounding the falling value of the dollar and fears of government default, Anthony Pompliano has brought forth gold and Bitcoin as the last line of defense against savings collapse.

According to crypto media outlet Benzinga on May 26 (local time), Anthony Pompliano, CEO of Professional Capital Management, emphasized that one should hold Gold and Bitcoin (BTC) to prepare for the depreciation of the dollar.

In a post on X (formerly Twitter), Pompliano warned that the falling value of the dollar drives asset inflation, ultimately harming savers. He argued that inflation increases discontent among the middle class and savers, creating an environment ripe for governments to adopt socialist or populist policies.

Pompliano stated, “When savers fall behind, socialism rises. When socialism rises, governments default. If governments default, you better hope you’re holding gold and Bitcoin.” Benzinga reported that Pompliano’s argument came just days after Mark Cuban, a strong proponent of Bitcoin as an inflation hedge, revealed he had sold most of his Bitcoin, stating it hadn't served as the defense he had hoped for.

Benzinga pointed out that Bitcoin had not yielded good returns over the past year, even as the U.S. Dollar Index barely rose. It also explained that there have been observed instances where neither Bitcoin nor gold consistently acted as universally reliable hedge assets amid macroeconomic uncertainty.

However, Benzinga reported that while Bitcoin underperformed gold during periods of tariff pressure last year, Bitcoin surpassed gold after the Iran war began in late February. According to Benzinga Pro, Bitcoin was trading at $76,776.43 at the time of writing, down 0.53% over 24 hours, while spot gold fell 0.89% to $4,529.11 per ounce.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*