Bitcoin's potential to act as a hedge against inflation won't materialize, according to Scaramucci, unless its user base expands to 1 billion wallets.
In a recent interview with CNBC, Anthony Scaramucci, the founder of SkyBridge Capital, shared his insights on Bitcoin's potential as a hedge against inflation.
Scaramucci believes that Bitcoin will gain legitimacy as a hedge against inflation as its user base grows and volatility decreases, with the number of wallet addresses potentially expanding from around 300 million to 1 billion. This growth, he believes, will help stabilize its value.
If viewed as an investment, Scaramucci predicts that Bitcoin’s market capitalization could increase substantially, possibly reaching from $1 trillion up to $3 trillion. However, if classified as a full asset class, it could potentially soar to the scale of gold’s market cap (~$23 trillion).
Regarding the timeline, Scaramucci expects substantial price gains and broader institutional adoption in the near term to medium term, especially by the end of 2025. He forecasts Bitcoin’s price reaching the $180,000 to $200,000 range by late 2025. This price growth aligns with the timeline in which Bitcoin would solidify its role as a reliable inflation hedge.
Scaramucci also points out that the fact that Larry Fink and his team at BlackRock are setting up a product related to Bitcoin indicates significant institutional demand. He thinks that people are not paying enough attention to what BlackRock is doing, specifically the potential for institutional demand for Bitcoin.
It's important to note that Scaramucci does not provide new information about the current number of Bitcoin wallets. He also does not repeat his previous statements about Bitcoin not being a hedge against inflation at its current stage or investing in Bitcoin during the current inflationary period being an inappropriate strategy.
Interestingly, Scaramucci entered the Bitcoin ecosystem when there were only 80 million wallets, well before the current 300 million. However, he does not mention the number of Bitcoin wallets at the time of his entry.
In conclusion, Scaramucci predicts a bright future for Bitcoin as a hedge against inflation, with substantial price gains and broader institutional adoption in the near term to medium term. His predictions are based on the growth of the Bitcoin user base and institutional participation, which he believes will help stabilize its value and solidify its role as a reliable inflation hedge.
Bitcoin's potential as a hedge against inflation, as discussed by Anthony Scaramucci, may increase its appeal in the finance world, influencing more investors to pour money into technology like Bitcoin for both short-term gains and long-term investment strategies. With institutions like BlackRock showing interest in Bitcoin, the technology's market capitalization could potentially expand to rival or even surpass gold's market cap ($23 trillion).
