Anthony Scaramucci on bitcoin and its potential to replace gold

Investors need to see the trend and level of volatility in Bitcoin how the digital currency is becoming more widespread worldwide, said Anthony Scaramucci of SkyBridge Capital.

According to a to an all-time high of over $ 63,000. to run In April, the price of Bitcoin fell rapidly within a few weeks – at some point even more than halved from those previous highs. Still, it’s up more than 10% since early 2021. On Wednesday at 2:35 p.m. ET, Bitcoin was priced at $ 33,744, according to Coin Metrics.

“I would like to point out that Bitcoin is still growing year-on-year, so it actually performed very well this year,” Scaramucci told CNBC’s Capital Connection on Tuesday.

According to Scaramucci, the company’s founder and co-managing director and CNBC employee, Skybridge Capital has “approximately $ 500 million” in Bitcoin.

He said Bitcoin is still in the early stages of adoption and will become a “replacement” for gold, adding, “We actually like the upside characteristics and are ready to accept Bitcoin’s volatility.”

According to CoinMarketCap, Bitcoin is the largest cryptocurrency by market capitalization and is often viewed as a potential competitor to gold as a long-term store of value. Currently, however, the price of Bitcoin tends to be exponentially more volatile than that of gold.

“When you went back to Amazons IPO in 1997, if you held this stock, $ 10,000 of that stock is now worth $ 24 million when it goes public. But you’d have exposed yourself to eight periods of time where, under Metcalfe’s law, the stock had fallen at least 50% when it was scaled, “he said.

Metcalfe’s Law states that the value of a network is proportional to the square of its users. Skybridge’s research division expects Bitcoin users to reach 1 billion by 2025 from the current 125 million, Scaramucci said.

“Think of the telephone system in the early 20th century when people started buying these phones and connecting to each other,” he said. “That’s happening with Bitcoin right now.”

“I am very confident that in a year or two we will sit here talking about this volatility, but also be amazed at Bitcoin’s uptrend for the next 24 months,” said Scaramucci.

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