The American financier Anthony Scaramucci believes that bitcoin is a monetary standard that could one day become a global reserve currency. He explained the volatile nature of the digital asset with the fact that it is still in its early adoption days.
BTC Is Effective as a Monetary Network
During an interview with Natalie Brunell, the Founder and Managing Partner of SkyBridge Capital – Anthony Scaramucci – shared his stance on bitcoin’s merits and its future development.
The top executive scratched the topic of BTC’s volatility, saying that this is something normal for a relatively new asset class and compared it to Amazon. SkyBridge Capital’s CEO reminded that the e-commerce giant is now one of the leading companies, hinting that the primary cryptocurrency is also heading towards that direction:
“Bitcoin is volatile because it is in its early adoption stage. Amazon had the same volatile curve 24 years ago. But if you have put $10,000 on Amazon at its IPO, you would have $21 million today.”
Interestingly, this is not the first time when Scaramucci has made such a comparison. In March, he compared the asset’s performance to Amazon’s stock and doubled down on his belief that bitcoin is better than gold.
Scaramucci further added that bitcoin is not only a currency. It is actually an effective financial network and a monetary standard. According to him, the asset’s most significant advantage is its decentralization:
“Bitcoin is decentralized. And financial instruments work better when you put power in peoples’ hands rather than when the government is in charge.”
Do Your Own Research
Despite praising the primary digital currency as a highly successful financial instrument, Scaramucci said his support is not only for it. He sees merit in other digital assets, including the second-largest – Ethereum.
He also urged people to learn more about the cryptocurrency space. Even if they are skeptical about the market, they should know the reason for it:
“Understand why you don’t want to own bitcoin, don’t just automatically say: ‘Oh, this is rat poison.’”
Speaking of initial investments in the field, Scaramucci advised the public to allocate not more than 5% of their total savings in it. Thus, in case of a price expansion, they would still enjoy solid profits. On the other hand, if bitcoin’s value starts declining (which he doubts), the loss would be insignificant.
Subsequently, he opined that bitcoin had reached a level where the US government has no power to ban it. Instead, the officials could only tax or regulate it, which they have been striving for in the past year or so.
Featured Image Courtesy of NYPost