Anthony Scaramucci, the CEO of the global investment firm Skybridge Capital, stated that Bitcoin still has a long way to go. Even though the digital currency is appealing to users, its wallet capacity is insufficient for it to act as a hedge against inflation.
Scaramucci believes that Bitcoin wallet bandwidth must first increase. Investors may then employ it as a hedge against inflation during global recessions.
Bitcoin Is Not Yet An Inflation Hedge – Skybridge CEO
On August 22nd, Scaramucci participated in a CNBC Squawk Box interview. The CEO noted that despite its increased use, BTC continues to grow as a technical asset.
According to him, the asset cannot be considered an inflation hedge. He stated that the number of BTC wallets must first surpass one billion.
Bitcoin Needs 1 Billion Wallets To Be A Viable Inflation Hedge.
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“Until BTC wallets reach the billion zone, I do not think it is a hedge against inflation,” he stated.
Meanwhile, the total number of BTC wallets worldwide is unknown. However, estimates predict that the wallets are over 200 million.
When BTC started to gain prominence, several proponents said it could serve as a hedge against inflation since it had a fixed supply of only 21 million. However, according to the IMF, this narrative may no longer be tenable as BTC’s correlation with the stock market is increasing.
Meanwhile, Scaramucci said he is bullish about the crypto market, including BTC. He mentioned BlackRock’s recent move to issue a private spot BTC trust with Coinbase serving as the custodian. The CEO said this signals high demand for Bitcoin from institutional investors.
According to Coinshare’s Chief Strategy Officer, Bitcoin’s price will not fluctuate.
Steven Lubka, managing director for private clients at Swan Bitcoin, believes Bitcoin is still a hedge against inflation, per Cointelegraph. In the meantime, Lubka acknowledged that the reserve currency could not serve as a shield against this year’s high global inflation.
Nonetheless, he claimed that the inflation was primarily brought on by supply shocks and not by monetary expansion. Therefore, BTC could not be a hedge against inflation, as it typically functions during monetary expansion.
The price of Bitcoin at the time of writing is $21,406. This represents a decline of approximately 69% from its peak of $69,045 on November 11th, 2021.
Coinshare’s CSO, Meltem Demirors, also shared her thoughts with the Squawk Box audience on August 22. Demirors stated that she expects the price of Bitcoin to remain flat throughout the third quarter of 2022.