Bitcoin users to soar to 1B by 2025
SkyBridge Capital says Bitcoin is still in its early adoption phase, where volatility is to be expected but there’s also huge potential for its appreciation.
Wed, 09 Jun 2021, 14:00 pm UTC
The crypto market has been highly volatile lately. For instance, Bitcoin (BTC) soared to an all-time high above $64,000 in April but plunged to just above $30,000 by May on one point.
However, SkyBridge Capital’s Anthony Scaramucci believes that Bitcoin did pretty well despite the volatility. “I will point out that bitcoin is still up on the year, so it’s actually been a very good performer this year,” Scaramucci said on CNBC’s “Capital Connection” on Tuesday.
He revealed that Skybridge Capital has about $500 million in Bitcoin. However, he isn’t particularly worried about the crypto’s volatility as he views it as an inflationary hedge.
“We’re making the case that despite the market’s volatility, with this continued printing of fiat currency particularly the U.S. dollar - there’s been over 469 billion U.S. dollars printed by the Fed this year,” Scaramucci explained. “For us, that Bitcoin exposure will offer a long-term hedge despite the volatility.”
SkyBridge Capital views Bitcoin as still in its early adoption phase. At this point, volatility is to be expected but there’s also huge potential for its appreciation.
“We actually like the upside characteristics and are willing to accept the volatility in Bitcoin, as Bitcoin, in our opinion, is in the early adoption stage,” Scaramucci said. “We think of the generation coming up behind us, they’re going to be accepting Bitcoin. As part of that standard, it will be, in our opinion, a replacement for gold. So where’s it trading right now, it’s about six and a half percent of gold’s market cap.”
While many investors blamed Elon Musk as the major reason for Bitcoin’s plunge, Scaramucci said that the market plunge is just part of a broader set of early adoption issues. “I would look at something like Amazon in its nascent era in and around 2000,” he explained BTC’s price in terms of the tech giant.
He said that 10,000 Amazon shares bought at its IPO in 1997 would now be worth $24 million. “But you would have subjected yourself to eight periods of time where the stock dropped at least fifty percent as it was scaling,” he added.
“I think this trajectory, this level of volatility, is something you have to accept if you believe Bitcoin’s longer-term story,” Scaramucci said. The number of Bitcoin users is expected to soar to a billion by 2025 from the current 125 million.
“Think of the phone system back in the early 1900s as people started to buy those phones and connect to each other,” he added. “That’s sort of what’s happening to bitcoin right now.”
“I’m very confident that we’ll be sitting here a year or two from now and talking about this volatility, but also being amazed at the upward trajectory of bitcoin over the next 24 months,” Scaramucci concluded.
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