Anthony Scaramucci, founder and managing partner of SkyBridge Capital, appeared on CNBC’s “Squawk Box” on April 18 to discuss various topics concerning Bitcoin, particularly focusing on its volatility, status as a safe haven, adoption rates, and the potential impact of US-listed spot Bitcoin ETFs.
Scaramucci acknowledged the difficulties in predicting Bitcoin’s short-term price movements, especially in light of recent geopolitical tensions. He emphasized Bitcoin’s position in its adoption curve, comparing its current stage to the Internet in 1999. This analogy underlines its nascent yet rapidly evolving nature, suggesting that Bitcoin will stabilize as a store of value once it surpasses a billion users. For now, he says, its price remains susceptible to risk-on and risk-off trades.
“You won’t see this be an inflation hedge or a store of value, as other pundits are saying, until you get over a billion users. Right now, it’s going to be way more volatile than people like, and people look at it as a risk-on or risk-off trade until we get to that adoption curve.“
The discussion also touched on Bitcoin’s potential as a safe haven asset. Scaramucci highlighted the cryptocurrency’s volatility during times of crisis, such as geopolitical conflicts or economic downturns, suggesting that while it may not currently serve as a reliable safe haven, its long-term prospects remain strong. He predicts that Bitcoin could reach prices between $170,000 to $200,000, bolstered by significant events like the halving.
He added:
“No one has ever lost money in Bitcoin over a rolling four-year period of time.“
The January launch of US-listed spot Bitcoin ETFs could dramatically influence Bitcoin’s market. Scaramucci believes that these ETFs will serve as a major conduit for traditional investors, enhancing Bitcoin’s price discovery and adoption through regulated investment vehicles. He dismissed concerns about the ETFs leading to excessive centralization of Bitcoin ownership, arguing instead that they will broaden investor base and enhance liquidity.
Throughout his interview, Scaramucci, converted from a sceptic to an advocate for Bitcoin, praised its decentralized, immutable nature. He sees Bitcoin’s inability to be manipulated by central banks as a strength, potentially positioning it to rival or even surpass the market capitalization of gold. His views are grounded in a belief in Bitcoin’s core principles and its role in future financial systems.
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