Despite being an outspoken advocate of bitcoin, the founder of the investment firm SkyBridge Capital – Anthony Scaramucci – does not believe the asset has yet reached an inflation hedged state. According to him, this will happen once BTC wallets hit the billion mark.
Furthermore, the former White House official has believed that the primary cryptocurrency will become the subject of mass adoption if giant institutions like BlackRock introduce related products.
Still not a hedge against inflation
In a interview for CNBC, Scaramucci argued that investing in bitcoin to preserve wealth during the current inflationary situation is not an appropriate strategy at the moment. He expects the asset to become “mature enough” and have these functions once it reaches a billion portfolios globally.
The American admitted that he entered the BTC ecosystem when there were only 80 million wallets, while today that number has risen to around 300 million.
Similar to some of his previous appearances, Scaramucci said that the leading digital asset is still in its infancy and, like any other innovation, it needs time to overcome its volatility and establish itself as a preferred investment choice.
Not long ago, he likened the ongoing crypto winter to the DotCom bubble in the 2000s. The latter knocked out numerous petty projects, but some like Amazon and eBay survived the crash and are now leaders in their field. Scaramucci believes that the bear market in the digital asset sector will have the same effect and eventually bitcoin will surely emerge as the winner.
Next, the financier who briefly served as the White House’s Director of Communications under the Donald Trump administration thinks a giant institution could significantly increase the level of bitcoin adoption:
“People don’t pay enough attention to what BlackRock is doing. If Larry Fink and his team are creating a bitcoin related product that is telling you there is an institutional demand out there … I think this is a huge thing that hasn’t been explained as much as it should be. “
Brian Armstrong shares similar thoughts
Two months ago, Coinbase CEO Brian Armstrong felt that the total market capitalization of the cryptocurrency is expected to increase 5-10 times, so the asset class could be considered an effective hedge against inflation.
Crypto’s market cap at the time of its announcement was around $ 1.1 trillion, and despite recent volatility, it is also now in a similar position.
Currently, gold (historically chosen by many people as an inflation hedge) has a market capitalization of over $ 11 trillion. Assuming Armstrong’s point of view is accurate, it means the cryptocurrency should catch up with the precious metal.
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