Key Points
- SkyBridge Capital’s Anthony Scaramucci suggests Bitcoin needs more global adoption to become a store of value.
- Scaramucci predicts Bitcoin will hit 1 billion users by 2026, becoming an inflation hedge and store of value.
Anthony Scaramucci, the founder of SkyBridge Capital and a fervent Bitcoin (BTC) advocate, opines that Bitcoin is still in its infancy and needs to gain more acceptance before it can be seen as a store of value. Scaramucci predicts that this will occur within the next two years.
Bitcoin’s Path to Becoming a Store of Value
Scaramucci responded to a query posed by Andrew Ross Sorkin, a CNBC’s Squawk Box Host, on Twitter. Sorkin questioned why Bitcoin wouldn’t be the ideal safe haven during a war if it were a good store of value. He also pondered why people wouldn’t “rush to it” if Bitcoin is a real hedge against inflation, particularly in light of fears of escalating conflicts between nations. These queries were raised in the context of Bitcoin’s recent price drop, which does not align with its supposed status as a hedge against inflation or a safe haven.
Scaramucci argued that Bitcoin cannot yet be considered an inflation hedge or a store of value due to its current level of global adoption. He believes that Bitcoin needs to be adopted by over a billion users, which he anticipates will happen by the end of 2026, if not sooner. As Bitcoin scales, he asserts, it will become an inflation hedge and a store of value.
Bitcoin’s Performance and Future Prospects
Scaramucci supports Bitcoin, particularly when compared to the dollar. He noted that the dollar has lost 22% of its value since January 2020, while Bitcoin has increased 3.5x in the same period. Despite Bitcoin’s volatility, he believes it’s unfair to say that Bitcoin isn’t currently an inflation hedge to some extent.
He also addressed critics who argue that Bitcoin is no longer a new asset based on its 15-year history. Scaramucci drew a comparison with the early days of flight, reminding people that even 15 years after the Wright brothers demonstrated flight, there were still skeptics questioning its commercial viability. He maintains that patience and a long-term perspective are key when investing in Bitcoin.
Anthony Pompliano, another Bitcoin enthusiast and entrepreneur, also responded to Sorkin’s question. He suggested that Bitcoin’s recent drop is typical of general uncertainty, citing a similar asset dump during the peak of the COVID pandemic. He noted that various assets, including bonds, commodities, stocks, and real estate investment trusts (REITs), all experienced sell-offs, leading to a liquidity crisis. He also pointed out that Bitcoin’s plunge coincides with the last 3 days before tax payments are due, a period that has historically seen Bitcoin drop. Despite this, he predicts that Bitcoin will lead the recovery across markets.
