SkyBridge Capital Founder Highlights Bitcoin’s Profitability Over Four-Year Periods

Anthony Scaramucci, the founder and managing partner at SkyBridge Capital, talked about Bitcoin on CNBC’s “Squawk Box” on April 18. He covered topics such as its volatile nature, role as a safe haven asset, rate of adoption, and possible effects of US-listed Bitcoin ETFs.

Scaramucci acknowledged the challenges in accurately forecasting Bitcoin’s short-term price fluctuations due to current geopolitical uncertainties. He emphasized Bitcoin’s place in its adoption process, drawing a parallel between its present stage and the Internet in 1999. This analogy highlights Bitcoin’s emerging yet rapidly developing nature, implying that it will establish itself as a value storage mechanism when it reaches a billion users. At this point, he noted, Bitcoin’s price remains vulnerable to market swings influenced by risk appetite.

“Until this platform reaches over a billion users, it won’t function as an inflation hedge or a store of value, as some experts suggest. At present, it is more volatile than most people are comfortable with, and investors view it as a high-risk trade.”

During the conversation, the topic of Bitcoin being a secure investment option was brought up. Scaramucci pointed out that while Bitcoin’s value can fluctuate greatly during crises such as geopolitical tension or economic instability, it might not be a dependable haven asset at the moment. However, he is optimistic about its future potential and believes that Bitcoin could eventually reach prices ranging from $170,000 to $200,000, fueled by major occurrences like the halving.

He added:

No one has ever lost money in Bitcoin over a rolling four-year period of time.

The January launch of US-listed spot Bitcoin ETFs could dramatically influence Bitcoin’s market. Scaramucci believes that these ETFs will serve as a major conduit for traditional investors, enhancing Bitcoin’s price discovery and adoption through regulated investment vehicles. He dismissed concerns about the ETFs leading to excessive centralization of Bitcoin ownership, arguing instead that they will broaden investor base and enhance liquidity.

During his interview, Scaramucci shifted from being skeptical to becoming a supporter of Bitcoin. He admired its unique features, which include decentralization and immutability. According to him, the fact that Bitcoin can’t be controlled by central banks is an advantage, making it a strong contender to challenge or even exceed gold’s market value. Scaramucci’s perspective is rooted in his faith in Bitcoin’s fundamental concepts and its significance in shaping the future of financial structures.

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2024-04-18 19:44