Anthony Scaramucci: Bitcoin Cannot Be Store of Value Until Adoption Exceeds 1 Billion Users

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Anthony Scaramucci, the founder of SkyBridge Capital and a well-known Bitcoin advocate, thinks it will take another two years for Bitcoin to fully establish itself as a valued asset for storing wealth. In his opinion, Bitcoin is currently in its infancy and needs wider usage before it can gain global recognition as a trusted store of value.

Scaramucci Says Bitcoin Should Hit 1 Billion Users by 2026

In a recent post on X, Scaramucci addressed a query from CNBC’s Andrew Ross Sorkin regarding Bitcoin’s role as a safe-haven and store of value during times of conflict or inflation. On Sunday, Sorkin posed the question of why Bitcoin wouldn’t be an ideal refuge if it truly held these characteristics, as some Bitcoin supporters argue. He also pointed out that if Bitcoin functions as an effective hedge against inflation, then people should consider investing in it due to the potential for escalating conflicts between countries. Sorkin raised these points, implying that Bitcoin’s price instability may not align with its perceived role as a safe haven and hedge against inflation.

In a statement made earlier today, Scaramucci expressed his view that Bitcoin does not yet have enough global acceptance to function as an inflation hedge or a store of value. He went on to suggest that a greater degree of adoption is necessary before it can be widely regarded as such. (Scaramucci’s original post: Bitcoin cannot serve as an inflation edge or store of value with its current level of global adoption.)

Bitcoin is currently in its developmental phase as a technical asset, and its price behavior will resemble that of other risk assets. However, once it surpasses one billion users, expected by the end of 2026 or sooner, it’s likely to function as an inflation hedge and a store of value.

Scaramucci argues that Bitcoin is a viable alternative to the dollar based on its performance since early 2020. While the value of the dollar has decreased by 22%, Bitcoin has surged approximately three and a half times during the same period. Consequently, it seems unfair for anyone to dismiss Bitcoin as an inflation hedge at this time. However, Scaramucci cautions that Bitcoin’s volatility is significant and should not be overlooked despite its past successes.

Additionally, Scaramucci countered arguments from Bitcoin detractors who base their criticism on the cryptocurrency’s 15-year existence and label it as no longer innovative. To bolster his stance for Bitcoin’s relevance, Scaramucci asserted:

“Let me bring up the fact that the Wright brothers achieved their historic first flight back in 1903. Yet, as recently as 1918, there were skeptics who doubted the commercial potential of flying. It’s worth being patient and persistent in such situations.”

Pomplianon Responds to Sorkin

In response to Sorkin’s query, renowned Bitcoin advocate and entrepreneur Anthony Pompliano commented not long after the post. Pompliano explained that Bitcoin’s recent decline is a common occurrence during uncertain times. He brought up an analogous occasion, when markets panicked during the height of the COVID-19 pandemic. Pompliano emphasized that various assets, such as bonds, commodities, stocks, and real estate investment trusts (REITs), all experienced significant sell-offs, causing a liquidity crisis.

It’s worth noting that according to Pompliano, Bitcoin’s recent decline in price aligns with the final three days before taxes are due, a period that historically sees Bitcoin experience a dip. To add to this observation, he anticipates that Bitcoin will spearhead market-wide price recovery.

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2024-04-16 18:27