Will the Bitcoin bubble burst again?
Former White House Communications Director and founder of SkyBridge Bitcoin Trust, Anthony Scaramucci said that Bitcoin is volatile and its bubble could burst. However, he is still optimistic about the broader crypto market and said that people can make a huge amount of money in this sector. In a recent interview with CNN, he said that Bitcoin is comparable to digital gold and is a new way to store capital. He also noted that he was skeptical about Bitcoin and other digital assets earlier but has changed his mind given the mass adoption of digital currencies.
He highlighted that crypto investments are not for weak hands. Investors buying digital currencies must be ready for the volatility in the market. Scaramucci said,
“This could be a blow-up top bubble. We expect the fund to be volatile and it could lose money.”
SkyBridge jumps into Bitcoin
SkyBridge Capital launched the SkyBridge Bitcoin Fund earlier this week. The fund is designed to provide both retail and institutional investors an opportunity to get exposure to Bitcoin. The former White House executive said that Bitcoin is easier to transfer and scarce, which is the reason why they are investing in it. The firm has a $310 million exposure in the premier cryptocurrency. It will provide institutional level custody to clients and allow them Bitcoin exposure, without having to hold the coins directly.
He specified that Bitcoin is still in its nascent stages but has several institutional quality custodial solutions available. This is the right time for investors to allocate their capital to the crypto space. SkyBridge Senior Partner and co-chief investment officer Ray Nolte said Global money printing has reached all-time highs because of which Bitcoin emerges as a strong alternative to gold. It can not just provide a hedge against inflation in the future but can also store value.