7 months ago
24 ARTICLE AD
According to Scaramucci, Bitcoin’s level of adoption must increase considerably before it is considered a store of value and inflation hedge.
SkyBridge Capital founder and popular Bitcoin (BTC) bull Anthony Scaramucci believes Bitcoin is still two years away from becoming a store of value. According to Scaramucci, Bitcoin is in its early days and must undergo increased adoption before global acceptance.
Scaramucci Says Bitcoin Should Hit 1 Billion Users by 2026
In an X post, Scaramucci responded to a question CNBC’s Squawk Box Host Andrew Ross Sorkin asked about Bitcoin. On Sunday, Sorkin asked why Bitcoin would not be the perfect safe haven during a war if it were a great store of value, as Bitcoin bulls believe. He also noted that if Bitcoin is really a hedge against inflation, people should “rush to it” fearing that countries will further their conflict. Sorkin asked these questions, suggesting that Bitcoin’s price crash does not agree with the asset’s purported status as a hedge against inflation or safe haven.
Earlier today, Scaramucci said Bitcoin cannot be an inflation edge or store of value “at the current percentage of global adoption.” According to him, Bitcoin needs much more adoption before it can be widely considered a hedge. Scaramucci wrote:
“[Bitcoin] is still an early stage technical asset that will trade like other risk assets until [it] exceeds a billion users which should happen by the end of 2026 if not sooner. It will [become an inflation hedge and store of value] as it scales.”
Scaramucci’s explanation supports Bitcoin, especially compared to the dollar. The Bitcoin bull pointed out that while the dollar has lost 22% of its value since January 2020, Bitcoin has climbed 3.5x in the same time. According to Scaramucci, this makes it “unfair” for anyone to claim Bitcoin is not currently an inflation hedge to some degree. However, he warned that despite the asset’s wins over the years, Bitcoin is very volatile.
Furthermore, Scaramucci responded to Bitcoin critics who use the asset’s 15-year history as a point to argue that Bitcoin is no longer a new asset. In support of the king coin, Scaramucci wrote:
“I would like to remind people that the Wright brothers demonstrated flight in 1903. By 1918 there were still critics suggesting that there would be no commercial viability of flight. It pays to be long [in] this and patient.”
Pomplianon Responds to Sorkin
Another popular Bitcoin bull and entrepreneur, Anthony Pompliano, responded to Sorkin’s question shortly after the post. According to Pompliano, Bitcoin’s recent plunge is typical of general uncertainty. Pompliano highlighted a similar asset dump during the heat of the COVID pandemic, buttressing his point that investors tend to panic during such periods. He noted that several assets, including bonds, commodities, stocks, and real estate investment trusts (REITs), all sold off, sparking a liquidity crisis.
Interestingly, Pompliano pointed out that the plunge in Bitcoin coincides with the last 3 days before tax payments should be submitted, “which historically has seen Bitcoin drop as well”. In support, he predicts that Bitcoin will lead price recovery across markets.
