- Scaramucci asked Bitcoin investors not to lose focus of the bigger picture
- He also compared Bitcoin’s volatility during growth to Amazon’s stock in the late 90s
SkyBridge Capital founder Anthony Scaramucci has asked investors to hold onto their crypto assets as he believes the current market dip will come to an end soon.
“Take a chill pill, stay long bitcoin, other cryptocurrencies like Algorand and Ethereum, and I think you’re going to be very well-served long-term in those investments,” he said.
Bitcoin is not yet a mature store of value
Speaking during a CNBC interview, he explained that the Dollar will always be the Dollar hence Bitcoin’s change relative to it should not elicit much concern from investors. He asked them to focus ahead and make long-term investments, noting that Bitcoin is an emerging technology whose role as a store of value will rise as adoption increases.
“We're getting ahead of ourselves. If it's 2025, and there's a billion bitcoin wallets, let's call it a currency. The Dollar is still the Dollar. To me, this is an emerging technology that will eventually evolve into a store value as more and more people join the network.”
Scaramucci also mentioned Amazon’s growth in the late 90s, a period during which its stocks experienced massive volatility, as a reason why he wouldn’t be too harsh on Bitcoin for its volatility.
Despite plunging in value by at least 50% in a total of eight periods, The NASDAQ-listed firm’s stock survived and is today established as one of the most valuable tickers. He posited that investors need to realize Bitcoin is still an early adoption technology and is therefore neither a store of value nor a currency.
“Ultimately, it's about buying quality and recognizing that bitcoin — and I’ve said this on air many times — it's not a store of value at this moment. It's not technically a currency at this moment.,” he explained.
Crypto adoption will increase this year
Along with his enthusiasm towards the digital asset, Scaramucci said he recommends that his clients invest in the asset, but in reasonable amounts.
He maintained that he expects Bitcoin to retain an upward trajectory. The former Goldman Sachs exec detailed that while crypto markets remain wildly unpredictable, he anticipates that crypto adoption will grow this year.
Furthermore, noting that any sudden plunge in the markets is nothing new for Bitcoin, he predicted that by 2024, the coin would have scaled to have in the range of 500 million to 1 billion wallets globally.
“…Bitcoin is going to have, in my opinion, half a billion wallets, possibly a billion wallets as we get to 2024. So, people should ride this stuff out. I think it’s nonsensical to expect just an asymmetric 45-degree line in any story as new as Bitcoin.”