According to Anthony Scaramucci of Skybridge Capital, the world’s most sought-after cryptocurrency – Bitcoin is set to become a replacement for gold.
This statement strongly opposes what economist and crypto critic Peter Schiff said some months back. The economist and crypto sceptic said that gold was a better alternative to both Bitcoin and conventional money.
Despite falling as low as below half of its all-time high at some point in recent weeks, Bitcoin is still up more than 10% so far in 2021.
Anthony Scaramucci is quite an advocate for the biggest cryptocurrency and describes the currency as a ‘very good performer’ despite its volatility.
Anthony Scaramucci has a rigid stance about Bitcoin and insists that the currency is here to stay. According to him, investors need to start accepting the level of volatility of Bitcoin as well as its tragedy. He opines that this is needed as Bitcoin continues to gain popularity.
Following a run to an all-time high above $63,000 in April, the price of Bitcoin has swiftly tumbled in a matter of weeks — at one point even more than halving from those earlier highs, CNBC reported. Still, it’s gained more than 10% since the start of 2021. As of 2:35 a.m. ET Wednesday, the price of Bitcoin was at $33,744, according to data from Coin Metrics.
“I will point out that bitcoin is still up on the year, so it’s actually been a very good performer this year.,” Scaramucci told CNBC’s “Capital Connection” on Tuesday.
Anthony Scaramucci, who is the founder and a co-managing partner at the investment firm as well as a CNBC contributor mentioned that Skybridge Capital has “about $500 million” in bitcoin.
He went further to say that Bitcoin is still very much in its early adoption stage and is set to become a “replacement” for gold. “We actually like the upside characteristics and are willing to accept the volatility in Bitcoin”, he added.
This is not the first time Bitcoin is being compared to gold. This comparison happens a lot as Bitcoin is the largest cryptocurrency by market capitalization, even though the price of the currency tends to be more volatile when juxtaposed with gold.
Explaining the potentials that Bitcoin has, Anthony Scaramucci said that “If you went back to Amazon’s IPO back in 1997, if you held that stock, $10,000 of that stock on its IPO is now worth $24 million. But you would have subjected yourself to eight periods of time where the stock dropped at least 50% as it was scaling, pursuant to Metcalfe’s law”.
The research department of the New York-based investment firm expects growth in bitcoin users to reach a billion by 2025. At present, there are only about 125 million Bitcoin users.
“Think of the phone system back in the early 1900s as people started to buy those phones and connect to each other. That’s sort of what’s happening to bitcoin right now”, he continued.
“I’m very confident that we’ll be sitting here a year or two from now and talking about this volatility, but also being amazed at the upward trajectory of bitcoin over the next 24 months,” Scaramucci said.
El Salvador has adopted Bitcoin as a legal tender. Irrespective of the recent price volatility, analyst still say that Bitcoin still has a long way to go and is here to stay.