Anthony Scaramucci, the Managing Director and CEO of Skybridge Capital, a leading investment management firm, believes that Bitcoin won’t hedge inflation until it hits 1B wallets. He made these remarks on Monday during CNBC’s Squawk Box.
According to Scaramucci, it is too early in the day to suggest that Bitcoin (BTC) would serve as a hedge against inflation. “Bitcoin needs to be held in at least 1B wallets before it can hedge against inflation. Until you get into the billion, billion-plus zone, I don’t think you’re going to see Bitcoin as an inflation [hedge] as it’s still an early adopting technical asset,” Scaramucci said.
At the moment, the exact number of Bitcoin wallets may not be known, but available data suggests that the number is in the range of 200 million, even as BTC mining stocks double in a month as mining companies increase production. In the early years of Bitcoin, some investors touted the asset to be a potential hedge against inflation, given that its total fixed supply was pegged at 21 million coins. However, according to a new report released by the IMF, the narrative has since changed, as Bitcoin has been correlated to the stock market.
Scaramucci said he was still confident that Bitcoin will still bounce back from its current price point. His bullish stand stemmed from the recent moves made by BlackRock to launch a new private spot Bitcoin trust with Coinbase serving as the custodian. Scaramucci believes that the launching of the private spot Bitcoin trust is a sign that the demand for Bitcoin is still very high. “The global crypto market is still filled with lots of short positions, which could result in people getting their faces ripped off when they least expect it,” Scaramucci said.
The Managing Director of private clients at Swan Bitcoin, Steven Lubka, argued that Bitcoin (BTC) could still serve as a hedge against inflation if well harnessed. He made this remark in a recent interview he had with journalists covering crypto space. Lubka believes that the world’s most popular cryptocurrency has failed to act as a hedge against inflation during global inflation events, suggesting that inflation is predominantly caused by supply shocks rather than the widely believed monetary expansion.
At press time, Bitcoin trades at $21,406, a figure down by 69.01% from its all-time high in November last year. “I expect the price of Bitcoin to remain flat throughout the third quarter as long as a price correlation continues to exist between cryptocurrencies and tech equities,” said Meltem Demirors, the Chief Strategy Officer at Coinshare. She made this comment on Monday during CNBC’s Squawk Box.