What\u2019s going to make bitcoin bigger than ever? According to billionaire investor Anthony Scaramucci, the answer is \u201ctrust.\u201d<\/p>\n
Right now, trust \u2013 or the lack thereof \u2013 is getting in the way of the asset\u2019s progress. Many are worried about the currency\u2019s volatility and the fact that it is so vulnerable to price swings. Just four months ago, the asset managed to rise to a new all-time high of approximately $64,000 per unit, though now, it is trading for under $50,000. This is considerably better than where it was just a few weeks ago, but things have ultimately taken a negative turn for bitcoin in the eye of many public traders.<\/p>\n
In El Salvador, many people are protesting bitcoin for these reasons and because the coin is consistently tied to illicit behavior and criminal activity such as money laundering. These protests are occurring on the horizon of the Central American nation making bitcoin full legal tender by September 7 of this year.<\/p>\n
At a recent conference in New York, Scaramucci commented:<\/p>\n
\nWhat is going to turn bitcoin into real value is a trusted network\u2026 My eureka moment was when I recognized that the blockchain is allowing us to transact with each other without a third party, without\u00a0an authority<\/em>.<\/p>\n<\/blockquote>\n
He further stated that bitcoin has what it takes to be trusted by most people if they are willing to look past the initial ropes of traditional finance. For example, one of the big benefits of bitcoin that he points out is that it is limited in how many units will be produced. There are only 21 million units of BTC in the world, and all will be fully mined and placed in circulation by the year 2140.<\/p>\n
By contrast, the United States and other countries can regularly print fiat money, which means people and nations alike will always be at risk of experiencing inflation, something we have seen as of late following the coronavirus pandemic.<\/p>\n
Discussing some of the properties that make it trustable, Scaramucci said of bitcoin:<\/p>\n
\nBitcoin is a ledger, a decentralized ledger, and one of the most brilliant creations. We\u2019re making money worth less every day by corrupting it with the additional supply of it, and we\u2019ve increased its supply in the U.S. by 31 percent in the last 17 months.<\/p>\n<\/blockquote>\n
Treat BTC Like It’s a Normal Asset<\/h2>\n
Because of this, he says his company Sky Bridge Capital is treating bitcoin and cryptocurrencies as items that can diversify portfolios only. He says that investors are expected to exhibit patience and get along with what is presently \u201cworkable.\u201d He comments:<\/p>\n
\nInvestors are now taking too many risks in a highly volatile environment. Somebody said to me the other day, \u2018How much do you have in bitcoin?\u2019 I said, \u2018Around 20 percent of my personal assets\u2019 and they were like \u2018Whoa!\u2019<\/p>\n<\/blockquote>\n