Investing in Bitcoin is as safe as gold and bonds, says SkyBridge’s Anthony Scaramucci

Bitcoin has matured as an asset in recent years and is now a safe investment like gold and bonds, according to SkyBridge Capital’s Anthony Scaramucci and Brett Messing.

In a recently published joint post, the duo also highlighted BTC’s untouchability as a major merit that outlines the uniqueness of Bitcoin.

BTC is as safe as gold and bonds

Anthony Scaramucci, co-founder of large Wall Street investment firm SkyBridge Capital, and the company’s President and COO, Brett Messing, released an opinion piece to debunk some of the most popular myths and risks surrounding BTC investing.

They admitted several such “unique and distinct risks” including the possibility of losing private keys to a wallet where users store Bitcoin wealth and increased price volatility.

While the former requires more personal diligence, the latter is changing with “new rules and regulations that have spurred wider institutional acceptance”. One such example came last year when the United States Bureau of Currency Control authorized banks and custodians to add cryptocurrency services.

These signs of maturation made Bitcoin more attractive to institutions as several prominent names made sizeable allocations and openly praised the asset. Thus, BTC has become comparable to some of the most traditional and secure asset classes:

“Improved regulations, infrastructure, and access to financial institutions like Fidelity, which hold investors’ money, have made Bitcoin investments as safe as owning bonds and commodities like gold, which are also used to balance portfolios.”

Executives also noted that BTC is still very early in the introductory phase and “offers significant long-term value.” Bitcoin as an emerging asset class is currently somewhere between “an infrastructure for wider acceptance” and “room for value creation”.

Anthony Scaramucci. Source: CNBC

Combating the volatility of BTC

One of the most notorious characteristics of Bitcoin is its volatility. The primary cryptocurrency rose or fell in double digits more than once in a day. Scaramucci and Messing, however, attributed these movements to their “novelty” and the lack of clear regulation.

The situation is changing, however, as more and more world watchmen review and implement new regulations. As a result, the duo argued that high net worth individuals, macro funds, hedge funds and life insurance companies will be drawn to “a more stable environment” for BTC investing.

Regardless, the post touched on the economic uncertainty sparked by the COVID-19 outbreak that led the world’s governments to take extreme measures. At such moments, investors and even ordinary people tend to opt for tangible assets like gold and neglect intangible options like BTC. However, the duo believe that this particular trait represents the strength of the cryptocurrency:

“Bitcoin is valuable because – not in spite of it – it is immaterial. You can always look for more gold. Bitcoin is unique among assets as the world’s first store of value in which supply remains completely unaffected by increased demand. “

The billion dollar hedge fund SkyBridge Capital launched a Bitcoin Fund LP earlier this year with an initial investment of $ 25 million. Scaramucci will act as fund manager and his goal is to “democratize bitcoin”.

SPECIAL OFFER (sponsored)
Binance Futures 50 USDT FREE Coupon: Use this link to register and get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register and enter the POTATO50 code to get 50% free bonus on every deposit up to 1 BTC.

Comments are closed.