Bitcoin is not an inflation hedge: Skybridge’s Scaramucci
- Anthony Scaramucci says Bitcoin needs to reach a billion wallets to start being seen as an inflation hedge.
- However, he is bullish on the crypto markets, predicting a recovery towards the end of the year.
- Scaramucci also says that the meme stock situation is still due to people having a lot of cash from last year.
Skybridge Capital CEO Anthony Scaramucci says despite Bitcoin’s continued attractiveness as an asset class, it’s not at the level where it can be “considered an inflation hedge.”
Scaramucci vented his emotions during one interview with CNBC’sSquawk Box‘ on Monday.
Bitcoin as an inflation hedge… not yet
On Bitcoin, Scaramucci believes there is still room for the pioneering crypt to grow into mainstream adoption before hitting the button to claim inflation-hedge status.
“Bitcoin is still not a mature enough asset to be seen as a potential inflation hedgehe told CNBC.
While his sentiments are likely to elicit sharp reactions from the entire Bitcoin community, especially from the perspective that the pioneering crypto is not “mature enough,” Scaramucci’s explanation rings a bell or two when it comes to global adoption.
He believes that to get to the point where it is now seen as a hedge, the BTC network must have grown to at least one billion wallets.
For now, the benchmark cryptocurrency “[doesn’t] has your wallet’s bandwidth“, he noted, adding that it is currently at the stage of “an early use of technical resource.”
The crypto market and meme stock mania
The Skybridge Capital founder also spoke about the overall crypto market, with the recent selloff across major assets coinciding with the sharp moves in the meme-stock sector.
In particular, he cited the recent volatile price movement of Bed, Bath & Beyond — the retailer whose stock joined the meme bandwagon to mirror the past performances of GameStop and AMC Entertainment.
According to him, the kind of trades seen with these stocks are likely to continue given the possibility that there is still a lot of excess liquidity across the pockets of investors. He believes these people”made a ton of money” during the bull market, and helped with the easy cash that characterized the economy then.
Elsewhere, he is optimistic about the market’s prospects for recovery towards the end of 2022 and early next year. Signals of these have been bounced in the middle of some good news, which may be the case over the next few months.
And he thinks it’s likely that people with massive short positions could easily get caught up in a sharp rally and “get ripped off.”