- Anthony Scaramucci says Bitcoin’s technological immaturity makes it unsuitable as an inflation hedge.
- Despite the number of bitcoin wallets increasing from 80 million, 300 million is still too small, he said
- He noted he was bullish on bitcoin, hinting at the growing institutional demand.
Anthony Scaramucci, CEO of SkyBridge Capital, has said that Bitcoin is not yet ready for use as a hedge against inflation because of its technological immaturity.
In an interview on CNBC’s Squawk Box, Scaramucci said that even if the number of bitcoin wallets has increased from the 80 million he saw when he initially bought, 300 million is still too small. Scaramucci told CNBC anchor Joe Kernen that Bitcoin would not become an inflation hedge unless you got into the billion or billion plus wallets.
Although the precise number of Bitcoin wallets is unknown, estimates peg this amount at around 200 million.
Given its fixed quantity of 21 million coins, some viewed Bitcoin as a viable inflation hedge in its early years. But a new analysis from the International Monetary Fund suggests that this narrative has evolved over time, as Bitcoin has been found to be increasingly correlated with the stock market.
Scaramucci said he was still bullish about Bitcoin and the cryptocurrency sector in general, hinting at recent initiatives by BlackRock to form a new private spot Bitcoin trust with Coinbase as the custodian. According to the Skybridge Capital CEO, this was a sign of strong institutionalized demand for the premiere cryptocurrency.
The billionaire hedge fund manager believes that the role of major financial institutions like BlackRock and Goldman Sachs in accelerating institutional adoption of bitcoin receives little attention.
BlackRock, the largest asset manager in the world, has recently partnered with Coinbase to expand cryptocurrency investment options for its clients. In addition, the company launched its first spot bitcoin product, a private trust that follows the price of bitcoin directly. While bitcoin has dropped by over two-thirds of its all-time high, institutional interest remains high, as reported by BlackRock.
According to Scaramucci, the current state of the markets is rife with a lot of short positions that might lead to investors having “their faces ripped off when they least expect it.”
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