Anthony Scaramucci’s Bitcoin and the ability to replace gold

According to Anthony Scaramucci of SkyBridge Capital, given the global spread of digital currencies, investors need to adjust to Bitcoin trends and levels of volatility.

Bitcoin prices have fallen sharply in the weeks after hitting an all-time high of over $ 63,000 in April. Nevertheless, it has increased by more than 10% since the beginning of 2021. Bitcoin prices were $ 33,744 at 2:35 AM EST on Wednesday, according to Coin Metrics data.

Scaramucci told CNBC’s Capital Connection on Tuesday.

SkyBridge Capital owns “approximately $ 500 million” in Bitcoin, said Scaramucci, the company’s founder, co-management partner and CNBC employee.

He said Bitcoin is still in the early retirement phase and will be a “replacement” for gold. “We really like the positive qualities and are ready to accept the volatility of Bitcoin. There are. “

According to CoinMarketCap, Bitcoin, the cryptocurrency with the largest market cap, is being marketed as a potential competitor to gold for long-term store of value. But now bitcoin prices are more exponential than gold prices. It tends to fluctuate.

“If you came back to Amazon’s initial public offering in 1997 and owned this stock, the $ 10,000 on that initial public offering is now worth $ 24 million. It was scaled according to Metcalf’s law. So, ”he said.

According to Metcalfe’s law, the value of a network is proportional to the square of the user. Skybridge’s research department expects Bitcoin users to grow from 125 million today to 1 billion by 2025, Scaramucci said.

“Think of the phone systems of the early 20th century when people bought these phones and started connecting to each other,” he said. “It’s like what’s happening with Bitcoin right now. . “

“I’m sure we’ll sit here a year or two later and talk about this volatility, but we’re also amazed at Bitcoin’s upward trend over the next 24 months,” said Scaramucci.

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