Anthony Scaramucci, founder and managing partner of Skybridge Capital, a global investment firm, said Bitcoin (BTC) is not a reliable store of value. Known for his support of BTC and candid financial analysis, Scaramucci gave a reason for this belief.
Why Bitcoin Isn’t Living Up to Expectations as a Store of Value
In an exclusive interview On CNBC’s Squawk Box, Scaramucci stated that BTC does not qualify as storing value in the financial sector. His criticism centers around the negative impact of the current regulatory framework for the cryptocurrency industry.
When I was asked about diversion between BTC and gold and what it reveals about the cryptocurrency itself and the market. In response, the Skybridge founder said he doesn’t see Bitcoin as a Store of Value today, but it is a technology in the early stages of implementation.
He emphasized that many investors and gold enthusiasts consistently BTC compared to goldnoting that while BTC stagnated for two years, the price of gold rose by over 30%. As a result, gold’s higher value makes it a better and more reliable store of value.
Scaramucci revealed that Bitcoin can only be considered a reliable store of value if its adoption is expanding to the point where it has over a billion lively cryptocurrency wallets. While he agreed that the pioneering cryptocurrency could be a future store of value, it currently does not have that status.
Scaramucci argued that currently headwinds regulating and the lack of a proper framework in the industry undermines Bitcoin’s credibility as a store of value. He went further, delving into BTC’s value as a fundamental technology, highlighting its achievements and future potential.
The Skybridge founder revealed that Bitcoin has integrated payments and rail systems into its technology, which potentially grows the economy of the United States (US). He noted that if the United States spends $6 to $7 trillion per year on transactions and verifications, BTC technology could significantly reduce these costs, and potentially improve innovation and efficiency.
BTC could reach $100,000
During the interview, Scaramucci predicted that Bitcoin could rise to $100,000setting a fresh all-time high. However, he noted that the cryptocurrency’s price rally took longer than expected due to regulatory hurdles, market uncertainty and previous incidents of fraud.
When asked if the recent price changes of BTC are more due to Spot Bitcoin ETF investments or institutional investors buying BTC, Scaramucci confirmed that Spot Bitcoin ETFs have had a significant impact on the cryptocurrency’s price. He mentioned this earlier this year when the launch of the Spot Bitcoin ETF sent BTC surging to all-time high above $73,000.
Before this price escalate, BTC was trading at around $30,000 in 2023, and at one point in 2022, it even fell to around $17,000. As a result, the Skybridge founder announced that the Spot Bitcoin ETF has achieved the greatest success ETF Introduction in history.
Featured image created with Dall.E, chart from Tradingview.com
