Bitcoin’s 3x Trading Range is a Good Thing

In a recent podcast with Anthony “Pomp” Pompliano, the American entrepreneur and angel investor Jason Calacanis said that Bitcoin has been performing quite stable and promising lately. As such, he was even contemplating purchasing portions of the primary cryptocurrency.

Calacanis: BTC’s Volatility Is Well In Balance

As a former blogger, Calacanis founded Weblogs Inc in 2003 – a startup supported by an angel investment from billionaire Mark Cuban. After selling the project to AOL, Calacanis became an angel investor himself, oriented towards technology startups. He’s involved in companies such as Uber, Robinhood, Thumbtack, and many others.

Jason Calacanis. Source: Medium
Jason Calacanis. Source: Medium

During the recent dual-podcast with Pomp, the topic inevitably reached Bitcoin, since Pompliano is one of the most popular BTC proponents. Calacanis firstly said that after the show, he “will go home today and say, “maybe we should put 1-2-3% into Bitcoin and make a big trade.” Because I have been sitting on the Bitcoin trade.”

Interestingly, Pomp said that if Calacanis indeed proceeds with purchasing some portions of the cryptocurrency and tweets out that he did it, this would “take 50% of your haters and turn them into the biggest Jason fans.”

Calacanis explained that he previously feared the infamous Bitcoin volatility. However, he believes that “the fact that it is trading in this range is very promising.” More specifically, he noted that the range in which BTC has been trading in the past two years is “a success for Bitcoin.”

“The fact that it has been only a 3x range, that feels pretty good for something that has no central authority. Feels like a tight range to me. Feels like a confidence builder. If it went back up to $20k and back to $3,500 or went to $40k and back down to $2,000 – that would be very concerning, and I would stay away.”

Pompliano compared BTC’s market performance with the early days of Uber, by saying, “imagine if the first three years of Uber, there was a public stock price – it would be chaos.”

However, it’s worth noting that Bitcoin actually went outside the $3,500 – $10,000 range as it jumped to $14,000 last June.

Pomp: 100x BTC Increase Is Easy

While Pomp and Calacanis discussed so-called long-shot investments that became a success story, such as the popular trading app Robin Hood, Pompliano asserted that the primary cryptocurrency is still such an asset.

“Low probability but high potential is, I think, exactly why people are excited about Bitcoin. Five years ago, the potential for Bitcoin to reach a global reserve status was less than 1%. Now, maybe we are at 3%-5% – still incredibly low odds.

But, if it gets there, you are talking about an asset that’s 150-200 billion dollars in value that would eventually get into the 10s of trillions of dollars. So a 100x increase is easy from here by looking at the global money supply.”

Featured Image Courtesy Of Fordham

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