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Anthony Scaramucci, Skybridge Capital founder, had some pretty strong words to say in favor of Bitcoin as he talked about the skyrocketing dollar volume in the money supply. Earlier this year, Skybridge launched its Bitcoin fund. At the time, while the company was putting this cryptocurrency fund together, they noted that “we had 26% more dollars in circulation than over the past 244 years.” And including the entire stimulus means another 16% more dollar formation. That's a 40% increase in dollar volume that will show up in asset prices, he said on Squawk Box. Those who own the assets, as a result, get tremendous amounts of asset inflation, but the wages never catch up and the 20 plus millions of unemployed people can’t either, which is when “the gap gets wider, and then the politics get angrier and more loaded with populism,” said Scaramucci in an interview with CNBC. As such, the former White House Communications director recommends people have some defensive things. Personally, he endorses Bitcoin, which he said is “a long-term hedge” equipped with supply-demand imbalance and impregnability of the blockchain, which “is going to make that asset very attractive in a world printing money like this.”
Just Own Some
Currently trading around $59k, Bitcoin is up more than 14x from March low. Compared to the cryptocurrency’s 100% return YTD, the traditional safe-haven gold has been doing extremely poorly, down 8.62% YTD. “The world is changing,” said Scaramucci on precious metal underperforming Bitcoin. He likened this to Nicolaus Copernicus, saying that it is the earth that revolves around the sun, meaning “things do change.”“So we have to look at it rationally and we have to accept that if money is a technology that allows us to transfer goods and services to each other efficiently, the technology around us would likely improve money which is a form of technology and so bitcoin has done that.”Not to mention, Bitcoin is a lot better than gold, and if the trusted network adapts according to Metcalfe's law, “you want to own some bitcoin...you don't have to own a lot of it but just own some of it.”
Bitcoin in a “Transitory Period”
Talking about Bitcoin’s volatility feature, which the mainstream media and companies continue to use as a way to declare it uninvestable, Scaramucci gave the example of Amazon to conclude that the 12-year old Bitcoin is in a “transitory period.” He explained how Amazon made “a very big move” over a 12 years period, yet if you bought it after the 12th year, you got a 64x return on your money from 2009 to 2021.“If you bought Amazon on the public offering May 15, 1997, the $10k that you put into it is worth 21 million today but Amazon now 20 years later is trading with more stability.”And that's what he thinks will happen to bitcoin “once it fully scales and you reach adoption levels over a billion dollars.” What’s even more exciting is Bitcoin got to a trillion dollars faster than all of those companies, and that’s primarily because it's decentralized, he said.
“Now you're taking all of that c-suite drama, all the politics associated with it away from it, it is a fully scaling monetary network and a store of value and it's going to get there over the next 15 years.”[deco-beg-single-coin-widget coin="BTC"]