Anthony Scaramucci, CEO of Skybridge Capital, believes that while Bitcoin continues to be an attractive asset, it has not achieved the “wallet bandwidth” required to be considered an inflation hedge.
Speaking to CNBC’s Squawk Box on Aug.22, the CEO of global investment management said Bitcoin is still too much of an “early adoption technical asset” that should be held in roughly a billion portfolios before it begins serving as a hedge. against inflation.
“Until you enter the billion plus billion zone, I don’t think you will see Bitcoin as inflation [hedge] as it is still an early adoption technical resource.
Although the exact number of Bitcoin wallets in the world is unknown, estimates place this number at around 200 million.
In its early years, some advertised Bitcoin as a potential hedge against inflation, given its fixed supply of 21 million coins. This narrative has changed over time, however, as Bitcoin has been observed to be increasingly correlated with the stock market, according to a new IMF report.
“#Bitcoin it is not yet a mature enough asset to be considered a potential hedge against inflation, “he says @scaramucci On $ BTC. “You just don’t have the wallet bandwidth with Bitcoin. It’s still a technical asset that you adopt soon.” pic.twitter.com/YTsy6W3HGU
– Squawk Box (@SquawkCNBC) August 22, 2022
Scaramucci said he is still bullish on Bitcoin and the entire cryptocurrency market, pointing to BlackRock’s recent moves to launch a new private Bitcoin trust spot with Coinbase as custodian, a sign that there is strong institutionalized demand for the major cryptocurrency. .
Scaramucci believes the markets are currently filled with a ton of short positions, which could lead people to “face each other when they least expect it.
In a recent interview with Cointelegraph, Steven Lubka, CEO of Swan Bitcoin’s private clients, said that Bitcoin should still be considered a hedge from inflation.
Although Lubka agrees that Bitcoin failed to act as an inflationary hedge during this year’s global inflationary events, he believes this inflation was mainly caused by supply shocks rather than monetary expansion, where Bitcoin is able to hedge against inflation more effectively.
Related: The UK hits double-digit inflation for the first time in 40 years
At the time of writing, Bitcoin’s price is currently $ 21,406, down 69.01% from its all-time high of $ 69,045 on November 11 last year.
Also speaking to “Squawk Box” on Monday, Coinshare chief strategy officer Meltem Demirors said he expects Bitcoin prices to continue to remain flat throughout the third quarter as price correlation between tech stocks and cryptocurrencies continues.
“With #Bitcoin we have seen a lot of declining purchases, “he says @Melt_Dem. “While internally there is a lot of enthusiasm within #crypto community around the merger … I don’t think there is a lot of new capital coming up to buy #Eterium on these changed fundamentals “. pic.twitter.com/8KBiRHfT1f
– Squawk Box (@SquawkCNBC) August 22, 2022