Despite being a strong supporter of Bitcoin, Anthony Scaramucci, Founder of the investment firm SkyBridge Capital, does not believe the asset is currently a hedge against inflation. In his opinion, this will happen when the number of BTC wallets reaches a billion.
Besides that, the former White House official believes that the main cryptocurrency will be massively adopted if giant institutions like BlackRock introduce products related to it.
In an interview for CNBC, Scaramucci said that investing in Bitcoin to preserve wealth during the current inflationary situation is not an appropriate strategy at this time. He expects the asset to become “mature enough” to perform these functions when the number of Bitcoin addresses reaches a billion.
He said that he entered the ecosystem when there were only 80 million wallets, while today their number has grown to about 300 million.
As in some of his previous speeches, Scaramucci noted that Bitcoin is still in its infancy and, like any other innovation, it needs time to overcome strong fluctuations in volatility and establish itself as the preferred investment choice.
Recently, he compared the ongoing crypto winter to the Dot-com bubble of the 2000s. A lot of pointless projects were liquidated during that period, but some, like Amazon and eBay, survived the hard times and are now leaders of their markets. Scaramucci believes that a bear market in the digital asset industry will have the same effect, and Bitcoin is bound to emerge victorious in the end.
The financier also remarked,
“People are not paying close enough attention to what BlackRock is doing. If Larry Fink and his team are setting up a product related to Bitcoin that is telling you that there is institutional demand out there…. I think this is a huge thing that has not been expounded upon as much as it should be.”
Two months ago, Coinbase CEO Brian Armstrong opined that the total market capitalization of cryptocurrencies would need to increase by 5–10 times for this asset class to be considered a successful hedge against inflation.
At the time of his statement, the market capitalization of cryptocurrencies was about 1.1 trillion dollars and is now in a similar position.
Currently, the market capitalization of gold (which people historically choose as a hedge against inflation) is over $11 trillion dollars.