- Scaramucci urged Bitcoin investors not to lose sight of the bigger picture
- He compared Bitcoin’s volatility during growth to Amazon’s stock in the late 1990s
Anthony Scaramucci, founder of SkyBridge Capital, urged investors to hold on to their cryptocurrencies, saying he believes the current market downturn will end soon.
“Take a chill pill, stay long on Bitcoin and other cryptocurrencies like Algorand and Ethereum, and I think over the long term those investments will reward you well,” he said.
Bitcoin is not yet a mature store of value
Speaking in an interview on CNBC, Scaramucci explained that the dollar will remain the dollar, so Bitcoin’s exchange rate against it should not be a primary source of concern for investors. He urged them to focus on the future and to invest with a long-term horizon, stressing that Bitcoin is an emerging technology whose role as a store of value will grow as adoption increases.
“Don’t panic. If by 2025 there are a billion Bitcoin wallets, we’ll have to call it a currency. The dollar is still the dollar. To me, this is an emerging technology that will eventually evolve into a store of value as more people join the network.”
Scaramucci also referenced Amazon’s dramatic volatility in the late 1990s—when its stock went through massive swings—to illustrate that Bitcoin’s volatility should not be judged too harshly.
Despite Amazon’s stock dropping by 50% or more on multiple occasions, the company survived and is now one of the most valuable tickers on the NASDAQ. Scaramucci suggested investors should recognize that Bitcoin is still in a first-adoption phase and therefore is neither a mature store of value nor a fully functioning currency right now.
“Ultimately, it’s about buying quality and acknowledging that Bitcoin, and I’ve said this on-air many times, is not a store of value at the moment. It’s not technically a currency right now,” he explained.
Cryptocurrency adoption will increase this year
While enthusiastic about the digital asset, Scaramucci said he advises his clients to invest in Bitcoin in reasonable amounts.
He expects Bitcoin to maintain an upward trajectory. The former Goldman Sachs executive noted that although crypto markets remain highly unpredictable, he anticipates digital currency adoption will grow this year.
Pointing out that sudden market drops are nothing new for Bitcoin, he predicted that by 2024 the number of wallets could grow to a range between 500 million and 1 billion globally.
“…Bitcoin will, in my view, have half a billion wallets, maybe a billion by 2024. So people should get into this stuff. I think it doesn’t make sense to expect only a smooth 45-degree upward line for a new asset like Bitcoin.”