In a recent interview, former White House Director of Communications\u00a0Anthony Scaramucci, who is the founder and managing partner of global alternative investment firm\u00a0SkyBridge Capital\u00a0(\u201cSkyBridge\u201d), said that crypto is a better inflation hedge than gold.<\/p>\n
SkyBridge is \u201ca global alternative investments firm specializing in multi-strategy commingled fund of hedge funds products, custom separate account portfolios and hedge fund advisory solutions to address the needs of a wide range of market participants ranging from individual accredited investors to large institutions.\u201d<\/p>\n
On January 4, Skybridge\u00a0announced\u00a0\u201cthe launch of the SkyBridge Bitcoin Fund LP, which provides mass-affluent investors with an institutional-grade vehicle to gain exposure to Bitcoin.\u201d<\/p>\n
The press release went on to say:<\/p>\n
\u201cAdditionally, on behalf of its flagship funds, SkyBridge initiated a position, valued at approximately $310 million at the time of this release, in funds investing in Bitcoin during November and December 2020.<\/em>\u201c<\/p>\n On October 24, Scaramucci\u00a0told\u00a0CNBC\u2019s \u201cCapital Connection\u201d:<\/p>\n \u201cDo the homework on bitcoin, understand what it is\u2026 Anybody that does the homework \u2026 ends up investing into it. Look at Ray Dalio,\u00a0a bitcoin skeptic, now a bitcoin investor.<\/em>..\u00a0These are brilliant guys [who] did the homework and drew a conclusion that they needed to own a piece of bitcoin.<\/em>\u201c<\/p>\n Scaramucci mentioned that so far he has invested $1 billion into BTC:<\/p>\n \u201cFor me, I have over a billion dollars in Bitcoin now. I started accumulating that position last year.<\/em>\u00a0I think that this manifests itself into a gigantic asset class. This is equivalent, to me, to digital gold.<\/em>\u201c<\/p>\n However, he does not consider himself a Bitcoin evangelist :<\/p>\n \u201cGuys like Michael Saylor of MicroStrategy think it\u2019s better than that, could be 10 times gold. I\u2019m not that optimistic about it. I am not a Bitcoin evangelist. I don\u2019t think that Jesus and Moses got together and made a baby and named it Bitcoin; that\u2019s not me. But I am an investor in this because I see the technical properties associated with it.<\/em><\/p>\n \u201cUltimately, this is a de-layering mechanism for society\u2026 It\u2019s a ledger defined by math. And when you think about the history of money, a ledger defined by math that has a scarcity to it, where no politician or policymaker can corrupt it or add supply to it, I think is a fascinating thing. I think it will have a big position in the global economy over the next decade.<\/em>\u201c<\/p>\n https:\/\/youtube.com\/watch?v=SanyBbq63X4%3Fstart%3D1%26feature%3Doembed<\/p>\n On November 10, the U.S. Bureau of Labor Statistics, which is a unit of the U.S. Department of Labor, issued a press release to announce that for the 12 months ending October the Consumer Price Index (CPI) increased 6.2% before seasonal adjustment. which was \u201cthe largest 12-month increase since the period ending November 1990.\u201d<\/p>\n Two days later (i.e. on November 12), Scaramucci joined CNBC\u2019s \u201cSquawk\u201d, where he was asked by Scott Wapner if gold could be competition for crypto as an inflation hedge.<\/p>\n According to a report by The Daily Hodl, Scaramucci replied:<\/p>\n \u201cListen, I\u2019m never gonna sell short gold; it\u2019s got a 5,500-year history of offering a store of value, but like everything in our society, when you get a technical property where there\u2019s a massive improvement, that has a tendency to eclipse things.<\/em><\/p>\n \u201cWe had DVDs, and we moved to Netflix and streaming. The Satoshi Nakamoto white paper basically put us into a new era, and the technical properties associated with Bitcoin are infinitely better than gold: you can move it costlessly, you can store it \u2013 virtually costlessly \u2013 and it has this ledger that is completely missile-locked. You can\u2019t hack it.\u00a0<\/em><\/p>\n \u201cSo, with 21 million coins and its scarcity \u2013 remember we only have 65% of the gold mined right now \u2013 the shortage of supply, the technical properties, I think it\u2019s probably gonna be 10 times better than gold over a long period of time.<\/em><\/p>\n \u201cBut for right now, Bitcoin is pacing what people like Michael Saylor and Cathie Wood are predicting that it will do, it will eventually eclipse gold. It\u2019s about a $1.2 trillion market cap today, gold\u2019s roughly $11 [trillion]. But I think Bitcoin gets there, the same way we\u2019re using our smartphone today and not using a rotary phone.<\/em>\u201c<\/p>\n Wapner then asked if it is the case that for crypto to win gold has to lose. Scaramucci said:<\/p>\n \u201cWell, I think gold will be okay, but it\u2019s sort of a flatline situation. Can it go up modestly? Yes, but I think Bitcoin and properties like Ethereum and Algorand are gonna go up exponentially just because of the scalability [and] security issues around them.<\/em><\/p>\n