Bitcoin won’t hedge inflation until it hits 1B wallets: Scaramucci

Anthony Scaramucci, CEO of Skybridge Capital believes that Bitcoin is still an attractive asset but has not yet reached the “wallet bandwidth”, which is necessary to make it an inflation hedge.

CNBC’s SquawkBox on Aug 22 featured the global investment management CEO. He stated that Bitcoin was still too early to adopt and would need to be kept in approximately a billion wallets to begin acting as an inflation hedge.

“Until you reach the billion, billion-plus area, I don’t think you’re going to be able to see Bitcoin [as an inflation hedge] because it’s still an early adopting technical resource.”

Although the exact number is not known, estimates put this figure at around 200 million.

Bitcoin was initially viewed as an inflation hedge due to its 21 million coin supply. According to a new IMF report, this narrative has changed. Bitcoin is now more closely linked to the stock market.

@scaramucci, $BTC: “#Bitcoin still isn’t a mature enough asset for being regarded as an inflation hedge.” You don’t have enough bandwidth to use Bitcoin as a wallet. It’s an early adopter technical asset. pic.twitter.com/YTsy6W3HGU
— Squawk Box August 22, 2022 (@SquawkCNBC).

Scaramucci stated that he is still bullish about Bitcoin and the entire crypto market, pointing out recent moves by BlackRock to create a private spot Bitcoin trust with Coinbase serving as custodian. This is a sign of institutionalized demand for the most popular cryptocurrency.

Scaramucci believes the current market is saturated with short positions. This could lead to people having “their faces ripped off when it least expects”.

Steven Lubka, Swan Bitcoin’s managing director of private client, stated that Bitcoin should be treated as an inflation hedge in a recent interview.

Lubka acknowledged that Bitcoin was not an effective inflation hedge in the face of global inflation events. However, he believes this inflation is more likely to be caused by supply shocks than monetary expansion. This is where Bitcoin can better hedge against inflation.

Similar: UK experiences double-digit inflation, for the first time since 1940

Bitcoin’s current price is $21,406, which is a drop of 69.01% compared to its November 11th record of $69,045

Meltem Demirors, chief strategy officer at Coinshare, spoke on Monday on “SquawkBox” and stated that she believes Bitcoin prices will remain flat in the third quarter due to the continued price correlation between tech equities cryptocurrencies.

“With #Bitcoin, we’ve seen lots of buying on dips,” said @Melt_Dem. “While there is a lot of excitement within the #crypto community about the merge… “I don’t believe there’s much new capital coming into #Etherium to purchase these fundamentally changed fundamentals.” pic.twitter.com/8KBiRHfT1f
— Squawk Box August 22, 2022 (@SquawkCNBC).

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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