Anthony Scaramucci, Founder and Managing Partner at Skybridge Capital, a global investment firm, has asserted that Bitcoin (BTC) is not a reliable store of value. Known for his support for BTC and candid financial analyses, Scaramucci has provided a reason for this belief.
Why Bitcoin Falls Short As A Store Of Value Claim
In an exclusive interview on CNBC’s Squawk Box, Scaramucci declared that BTC fails to qualify as a store of value in the financial sector. His critique centers around the negative impact of the crypto industry’s current regulatory framework.
When questioned about the diversion between BTC and gold and what it reveals about the cryptocurrency itself and the market, Responding, the Skybridge Founder stated that he does not view Bitcoin as a store of value today, but an early-stage technology in the process of adoption.
He pointed out that numerous gold investors and enthusiasts have consistently compared BTC with gold, noting that while BTC has remained stagnant for two years, gold has risen over 30%. As a result, gold’s superior performance makes it a greater and more reliable store of value.
Scaramucci disclosed that Bitcoin could only be considered a reliable store of value if its adoption expands to the point where it has over a billion active crypto wallets. Although he agreed that the pioneer cryptocurrency could be a future store of value, but it does not hold that status presently.
Scaramucci argued that current regulatory headwinds and lack of proper frameworks in the industry undermines Bitcoin’s credibility as a store of value. Moving forward, he delved deep into BTC’s value as a core technology, highlighting its achievements and future potential.
The Skybridge Founder revealed that Bitcoin has integrated payments and rail systems into its technology, potentially advancing the United States (US) economy. He noted that if the US were spending $6 trillion to $7 trillion annually on transactions and verifications, BTC’s technology could significantly lower these costs, and possibly improve innovation and efficiency.
BTC Could Be Going To $100,000
During the interview, Scaramucci predicted that Bitcoin could climb to $100,000, setting a new all time high. However, he noted that the cryptocurrency’s price surge was taking longer than expected due to regulatory hurdles, market uncertainty and previous fraud incidents.
When asked if recent BTC price actions are driven more by investments in Spot Bitcoin ETFs or institutional investors buying BTC, Scaramucci confirmed that Spot Bitcoin ETFs have had a significant impact on the price of the cryptocurrency. He referenced earlier this year, when the launch of Spot Bitcoin ETFs triggered BTC’s rise to an all time high above $73,000.
Before this price increase, BTC had been trading around $30,000 in 2023, and even dipped to about $17,000 some time in 2022. As a result, the Skybridge Founder proclaimed that Spot Bitcoin ETFs have achieved the most successful ETF launch in history.
Featured image created with Dall.E, chart from Tradingview.com
