Anthony Pompliano Pitches Gold, Bitcoin As Hedges Against Dollar Debasement: 'If The Government Defaults, You Better...'

Anthony Pompliano, CEO of Professional Capital Management, emphasized on Monday the importance of holding gold and Bitcoin (CRYPTO: BTC) as a hedge against dollar debasement.

Warning Or Advice?

In an X post, Pompliano warned that dollar debasement would drive asset inflation, ultimately harming savings.

The Bitcoin advocate then theorized that inflation would lead to frustration among the middle class and savers, creating ideal conditions for the government to introduce socialist or populist policies.

“If savers fall behind, socialism will rise. If socialism rises, the government will default. If the government defaults, you better hope you are holding gold and Bitcoin,” he stated.

Are Bitcoin, Gold Really The Hedges You Want?

Interestingly, Pompliano’s thesis comes just days after Mark Cuban, the celebrity investor who aggressively endorsed Bitcoin as a hedge against inflation, revealed he has sold most of his BTC as it didn't turn out to be the shield he expected it to be.

In fact, Bitcoin failed to give good returns when the dollar, as tracked by the U.S. Dollar Index, barely rose over the last year.

A particularly striking observation was the failure of both Bitcoin and gold to act as reliable universal hedges in the face of macroeconomic uncertainties.

While Bitcoin underperformed gold during tariff-induced pressures last year, it has outpaced the yellow metal since the Iran war started in late February.

Price Action: At the time of writing, BTC was exchanging hands at $76,776.43, down 0.53% over the last 24 hours, according to data from Benzinga Pro. Spot gold traded down 0.89% at $4,529.11 an ounce

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