Anthony Scaramucci, the Founder and Managing Partner at Skybridge Capital, a global investment firm, has recently made headlines by asserting that Bitcoin (BTC) is not a reliable store of value. Despite his previous support for BTC and candid financial analyses, Scaramucci now provides a reason for this belief.
In an exclusive interview on CNBC’s Squawk Box, Scaramucci declared that BTC fails to qualify as a store of value in the financial sector. His critique centers around the negative impact of the current regulatory framework in the crypto industry.
When questioned about the diversion between BTC and gold and what it reveals about the cryptocurrency itself and the market, Scaramucci stated that he does not view Bitcoin as a store of value today, but rather as an early-stage technology in the process of adoption.
He pointed out that while BTC has remained stagnant for two years, gold has risen over 30%, making gold a more reliable store of value. Scaramucci believes that Bitcoin could only be considered a reliable store of value if its adoption expands to the point where it has over a billion active crypto wallets. He acknowledges that BTC could potentially become a future store of value, but it does not hold that status presently due to regulatory headwinds and lack of proper frameworks in the industry.
Scaramucci also highlighted Bitcoin’s value as a core technology, pointing out that it has integrated payments and rail systems into its technology, potentially advancing the US economy. He suggested that BTC’s technology could significantly lower transaction costs and improve innovation and efficiency if the US were spending $6 trillion to $7 trillion annually on transactions and verifications.
During the interview, Scaramucci predicted that Bitcoin could climb to $100,000, setting a new all-time high. However, he noted that the cryptocurrency’s price surge was taking longer than expected due to regulatory hurdles, market uncertainty, and previous fraud incidents.
When asked about recent BTC price actions and whether they are driven more by investments in Spot Bitcoin ETFs or institutional investors buying BTC, Scaramucci confirmed that Spot Bitcoin ETFs have had a significant impact on the price of the cryptocurrency. He referenced earlier this year when the launch of Spot Bitcoin ETFs triggered BTC’s rise to an all-time high above $73,000.
Before this price increase, BTC had been trading around $30,000 in 2023 and even dipped to about $17,000 at one point in 2022. Scaramucci proclaimed that Spot Bitcoin ETFs have achieved the most successful ETF launch in history.
In conclusion, Scaramucci’s insights shed light on the current challenges facing Bitcoin as a store of value and its potential for future growth. Despite the obstacles, he remains optimistic about Bitcoin’s technological advancements and its impact on the economy.
