Anthony Scaramucci, founder and CEO of SkyBridge Capital, does not think BTC can act as an inflation hedge just yet. Scaramucci is renowned for his bullish opinions on the digital gold.
He has not relented in promoting Bitcoin and does not appear to want to stop anytime soon. Regardless, in terms of hedging against inflation, Scaramucci thinks BTC is not there yet.
Scaramucci refutes claims of BTC acting as an inflation hedge
CNBC’s Squawk Box hosted Scaramucci on Monday in one of its episodes. The Former White House Communications Director weighed in on the deplorable conditions of the markets. Scaramucci was asked why BTC appears to be plummeting with traditional stocks despite being noted as an inflation hedge.
In response, he said BTC has not yet gotten to the stage of acting as a steadfast hedge against inflation. “As it relates to Bitcoin, I’ve said consistently on this show that Bitcoin still is not a mature enough asset to be regarded as a potential inflation hedge,” Scaramucci remarked.
He added that the asset had not grown enough to attain that position, especially regarding wallet bandwidth. “When I bought my first BTC, it was about 80 million wallets, according to Glassnode; there’s probably 300 million wallets globally today,” he said. He further noted that a bandwidth reaching a billion wallets would be necessary attainment before BTC can act as an inflation hedge.
Despite underperformance, Scaramucci thinks BTC has good fundamentals long-term
While Scaramucci does not believe BTC can protect investors from macroeconomic conditions, he is confident the asset is getting there. Scaramucci pointed out that most people are unaware of the importance of BlackRock’s involvement in Bitcoin. He mentioned that it signifies a massively growing institutional interest in the asset class.
As an ardent Bitcoin proponent, Anthony Scaramucci has long-lasting faith in the firstborn crypto. Scaramucci noted that Bitcoin’s fundamentals are relatively bullish in the long term despite the persistent Crypto Winter. He mentioned that two factors are likely to flush demand into Bitcoin. The factors he said are Fidelity’s BTC savings retirement plan and BlackRock’s private BTC trust fund.
BTC has mainly been underperforming of late, but Scaramucci remains unfazed. The asset class has been met with a significant rejection that brought it down to lows not seen in almost a month. After testing the resistance at $25k, BTC dipped to as low as $20,856 on Saturday before slightly bouncing back. The asset’s current price is $21,094, having shed 12.7% of its value in the past seven days.
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