He added that although the present situation of Bitcoin does not look nice, investors will accept the level of volatility when the digital currency becomes more widely adopted in the world.
Bitcoin has nosedived in value after hitting an all-time high of $63,000 in April. The cryptocurrency is now hovering around $33,000, but the present value is still 10% higher than its value at the beginning of the year.
Scaramucci admitted that Bitcoin has a very rough few weeks, but blames Elon Musk for some of its woes. According to him, the tweets of the Tesla co-founder “scared people” away from the crypto asset.
Crypto assets still in an early stage of adoption
Scaramucci, who is former chief of communications at the White House, says the Skybridge investment firm he founded has about $500 million in Bitcoin. He stated that the high volatility has more to do with the fact that the crypto asset is still in its early stage of adoption.
He also compared Bitcoin’s Amazon to the present situation of Bitcoin. Amazon’s price has also fluctuated heavily through the years.
He compared Bitcoin to Amazon, whose stock price has fluctuated dramatically through the years. He said,
If you went back to Amazon’s IPO back in 1997, if you held $10,000 of that stock on its IPO, it’s now worth $24 million.
But critics have also argued that Bitcoin cannot be compared with stocks since the former has no intrinsic value.
Bitcoin enthusiasts also argued that cryptocurrency assets do not make them the store of value that will offer protection to investors against inflation.
Scaramucci is still adamant that the Bitcoin space will multiple in the future.
He said there are about 125 million Bitcoin users in the world, based on the research conducted by the Skybridge research department. He believes that there would be at least a billion users by 2025.
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