Anthony Scaramucci, CEO, Skybridge Capital, believes that Bitcoin is an attractive investment, on account of it not reaching the wallet bandwidth necessary for an inflation hedge, as reported by Cointelegraph.
According to Cointelegraph, in a conversation with CNBC’s Squawk Box, Scaramucci emphasised on Bitcoin being at an early adopted technical stage, which is required to be held in close to a billion wallets before it starts to act as a hedge against inflation. “Until you get into the billion, billion-plus zone, I don’t think you’re going to see Bitcoin as an inflation [hedge] as it’s still an early adopting technical asset,” Scaramucci said. Estimates have shown that the total number of Bitcoin wallets being around 200 million. Users have touted Bitcoin as capable hedge against inflation, considering its fixed supply of 21 million coins. Insights from a recent International Monetary Fund (IMF) has shown an increasing correlation between Bitcoin and stock market.
On the basis of information by Cointelegraph, Scaramucci mentioned about carrying a bullish outlook towards Bitcoin, and the cryptocurrency market’s recent take on BlackRock to unveil a new private spot Bitcoin trust having Coinbase as the custodian, which has the potential to show institutionalised demand for the cryptocurrency. Scaramucci believes that markets currently have short positions in it. In an interview with Cointelegraph, Steven Lubka, managing director of private clients, Swan Bitcoin, made the argument on Bitcoin and its characteristics of being a potential inflation hedge.
Moreover, Cointelegraph noted that while Lubka agreed on Bitcoin failing to act as an inflationary hedge during events of global inflation, he anticipates that the reason behind inflation concerns supply shocks rather than monetary expansion, for Bitcoin to hedge against inflation in an effective way. Speaking on Squawk Box, Meltem Demirors, chief strategy officer, Coinshare, spoke on her expectations of Bitcoin prices to remain flat throughout the thir quarter, due to price correlation going on between technology equities and cryptocurrencies.
(With insights from Cointelegraph)