Despite being an outspoken supporter of bitcoin, the founder of the investment company SkyBridge Capital – Anthony Scaramucci – does not believe the asset has reached a status of a hedge against inflation yet. In his view, this will happen once BTC wallets hit a billion.
In addition, the former White House official opined that the primary cryptocurrency will become a subject of mass adoption if giant institutions such as BlackRock introduce products related to it.
Still not a Hedge Against Inflation
In an 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 one billion wallets globally.
The American admitted entering BTC’s ecosystem when there were only 80 million wallets, while today, that number has surged to around 300 million.
Similar to some of his previous appearances, Scaramucci stated that the leading digital asset is still in its early days, and just like any other innovation, it needs time to overcome its volatility and establish itself as a preferred investment choice.
Not long ago, he compared the ongoing crypto winter to the DotCom bubble in the 2000s. The latter eliminated numerous meaningless projects, but some like Amazon and eBay survived the crash and now stand as leaders in their field. Scaramucci believes the bear market in the digital asset industry will have the same effect, and bitcoin will definitely emerge as a winner in the end.
Subsequently, the financier who briefly served as the White House Director of Communications under Donald Trump’s administration thinks giant institution could significantly boost bitcoin’s adoption level:
“People are not paying close enough attention to what BlackRock is doing. If Larry Fink and his team are setting up a product related to bitcoin that is telling you that there is institutional demand out there… I think this is a huge thing that has not been expounded upon as much as it should be.”
Brian Armstrong Shares Similar Thoughts
Two months ago, the CEO of Coinbase – Brian Armstrong – opined that the total cryptocurrency market capitalization should increase 5-10x so the asset class could be considered a successful hedge against inflation.
Crypto’s market cap by the time of his announcement stood at approximately $1.1 trillion and, despite the recent volatility, sits at a similar position now as well.
Currently, gold (historically chosen by many people as a hedge against inflation) has a market capitalization of over $11 trillion. Assuming Armstrong’s viewpoint is accurate, it means that crypto should catch up with the precious metal.
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