#1566 Anthony & Polina Pompliano | How Geopolitics Are Making Bitcoin Stronger

Unknown Source June 24, 2025 31 min

artificial-intelligence investment startup apple google

🎧 Listen to Original

53 Companies

49 Key Quotes

3 Topics

1 Insights

🎯 Summary

Podcast Episode Summary: #1566 Anthony & Polina Pompliano | How Geopolitics Are Making Bitcoin Stronger

This 30-minute episode of the Pomp Podcast, featuring Anthony Pompliano and Polina Pompliano, centers on the increasing relevance of Bitcoin amidst geopolitical instability and the evolving institutional adoption landscape, particularly concerning stablecoins.

---

1. Focus Area

The discussion primarily focused on Bitcoin as a geopolitical hedge, the maturation of Bitcoin’s volatility profile making it suitable for institutional portfolios, and the paradoxical role of stablecoins in onboarding traditional finance (TradFi) to digital assets.

2. Key Technical Insights

• Stablecoins as Digital Dollar Form Factor: Stablecoins (like USDC) are fundamentally just another form factor for the US Dollar, tokenized on a blockchain, offering immediate, low-cost, 24/7 transferability superior to traditional wire systems with operating hours.
• Volatility Maturation (Goldilocks Zone): Bitcoin’s volatility has cooled to a “Goldilocks” level—high enough to offer significant outperformance (historically comparable to top hedge funds like Renaissance Technologies) but low enough for institutions to integrate into regulated portfolios without extreme risk mandates.
• Obfuscating Volatility for Early Adoption: Early institutional adoption of Bitcoin often required “wrapping” it within structures (like venture funds with quarterly marks) to obfuscate its daily volatility from risk managers.

3. Market/Investment Angle

• Geopolitical Shocks are Temporary: Emotional, panic-driven selling of Bitcoin during weekend geopolitical crises (e.g., US/Iran tensions) is an uneducated response; the asset quickly recovers because its decentralized, censorship-resistant nature is inherently valuable during uncertainty.
• Institutional Acceptance Threshold: Bitcoin’s falling Compound Annual Growth Rate (CAGR) is making it more “fathomable” to institutions, moving it from an asset deemed too risky (e.g., 240% CAGR) to one that enhances portfolio Sharpe Ratios due to its non-correlation and high upside potential.
• Investor Optimization: Retail investors often seek maximum volatility (leading them to altcoins), whereas institutions seek resilience, asymmetry, and a better risk-adjusted return profile, which Bitcoin is now increasingly offering.

4. Notable Companies/People

• Co-2: Mentioned for their 2030 market cap ranking of tech companies, which notably included Bitcoin and Ethereum but excluded giants like Apple and Google, highlighting a projected shift in market dominance.
• Circle/Tether: Referenced as the current leaders in the stablecoin space, driving TradFi onboarding.
• JP Morgan & Bank of America: Both banks are reportedly preparing to enter the stablecoin game once regulatory clarity is provided, signaling major institutional commitment.
• Renaissance Technologies: Used as a benchmark; Bitcoin’s recent 5-year CAGR (around 60-65%) is comparable to the historical returns of this legendary hedge fund.

5. Regulatory/Policy Discussion

• Clarity for Payment Stablecoins Act: The US Senate passed this legislation, marking a significant legislative win for the crypto industry.
• Political Support: Former President Trump publicly urged the House to pass the stablecoin legislation, framing it as “American brilliance.”
• Reduced Reputational Risk: Regulators are reportedly removing the “reputational risk” penalty previously applied to banks engaging with crypto, paving the way for major financial institutions to participate directly.
• The Corporate Central Bank Playbook: A major concern raised is that banks launching dollar-backed stablecoins (like JPM Coin) might eventually remove the dollar backing, effectively becoming private central banks capable of printing money at will, necessitating rules to prevent this.

6. Future Implications

The conversation suggests a future where Bitcoin is firmly established as a core, albeit volatile, asset class within institutional treasuries and sovereign portfolios due to its superior properties during periods of global chaos. Stablecoins will serve as the primary bridge, onboarding the world to blockchain rails, even if the underlying asset (the dollar) remains unchanged.

7. Target Audience

Crypto Investors, Institutional Asset Managers, and Financial Professionals focused on digital asset integration, geopolitical risk management, and regulatory developments in the stablecoin sector.

🏢 Companies Mentioned

PayPal ✅ institution

Bank of America ✅ institution

But I ✅ unknown

Like I ✅ unknown

The US ✅ unknown

Wells Fargo ✅ unknown

Bitcoin ETF ✅ unknown

Bitcoin ETFs ✅ unknown

This Mastercard World Elite ✅ unknown

Cedar Falls ✅ unknown

At Simple Mining ✅ unknown

Pomp Letter ✅ unknown

Wall Street ✅ unknown

Brian Moynihan ✅ unknown

JPM Coin ✅ unknown

💬 Key Insights

"And I think that now what we are seeing is we are seeing the intersection of Bitcoin and traditional markets. And as those two things come together, there will be new ways"

Impact Score: 10

"That's a 10% increase. And therefore, if you keep getting that Bitcoin per share to grow, then people start to say, oh, you know what, if I hold this thing and the Bitcoin per share is going to grow in the future, then I should actually ascribe some future value."

Impact Score: 10

"Some trade at NAV, some people trade at some cases as high as six, seven, eight, nine times NAV, right? Obviously, I don't think that's very sustainable."

Impact Score: 10

"What the Bitcoin Treasury companies essentially have said is whether they already are a company or they're starting a new company, I'm going to put Bitcoin on the balance sheet and then my entire goal is to buy more Bitcoin."

Impact Score: 10

"Bitwise is the first and only Bitcoin ETF provider to openly publish its Bitcoin wallet addresses, allowing anyone to verify the fund's holdings. I believe this level of transparency is exactly the kind of innovation that only crypto makes possible."

Impact Score: 10

"you're going to have to create a rule that says, if you launch a stablecoin and you have a backing, let's say one-to-one to the US dollar, you may never remove the backing in the future. You can't onboard a bunch of people with a promise that the coin is backed by something, and then in the future remove that backing, change the rules, and now all of a sudden you just have a money printer."

Impact Score: 10

📊 Topics

#artificialintelligence 43 #investment 5 #startup 1

🧠 Key Takeaways

💡 create rules