What’s going to make bitcoin bigger than ever? According to billionaire investor Anthony Scaramucci, the answer is “trust.”
Anthony Scaramucci Discusses BTC in New York
Right now, trust – or the lack thereof – is getting in the way of the asset’s progress. Many are worried about the currency’s volatility and the fact that it is so vulnerable to price swings. Just four months ago, the asset managed to rise to a new all-time high of approximately $64,000 per unit, though now, it is trading for under $50,000. This is considerably better than where it was just a few weeks ago, but things have ultimately taken a negative turn for bitcoin in the eye of many public traders.
In El Salvador, many people are protesting bitcoin for these reasons and because the coin is consistently tied to illicit behavior and criminal activity such as money laundering. These protests are occurring on the horizon of the Central American nation making bitcoin full legal tender by September 7 of this year.
At a recent conference in New York, Scaramucci commented:
What is going to turn bitcoin into real value is a trusted network… My eureka moment was when I recognized that the blockchain is allowing us to transact with each other without a third party, without an authority.
He further stated that bitcoin has what it takes to be trusted by most people if they are willing to look past the initial ropes of traditional finance. For example, one of the big benefits of bitcoin that he points out is that it is limited in how many units will be produced. There are only 21 million units of BTC in the world, and all will be fully mined and placed in circulation by the year 2140.
By contrast, the United States and other countries can regularly print fiat money, which means people and nations alike will always be at risk of experiencing inflation, something we have seen as of late following the coronavirus pandemic.
Discussing some of the properties that make it trustable, Scaramucci said of bitcoin:
Bitcoin is a ledger, a decentralized ledger, and one of the most brilliant creations. We’re making money worth less every day by corrupting it with the additional supply of it, and we’ve increased its supply in the U.S. by 31 percent in the last 17 months.
Treat BTC Like It’s a Normal Asset
Because of this, he says his company Sky Bridge Capital is treating bitcoin and cryptocurrencies as items that can diversify portfolios only. He says that investors are expected to exhibit patience and get along with what is presently “workable.” He comments:
Investors are now taking too many risks in a highly volatile environment. Somebody said to me the other day, ‘How much do you have in bitcoin?’ I said, ‘Around 20 percent of my personal assets’ and they were like ‘Whoa!’