Bitcoin hasn’t done super well as of late. The world’s number one cryptocurrency by market cap has ultimately lost approximately 20 percent of its value since the beginning of the year due to many harsh economic factors including the war in Ukraine and rising rates thanks to the Fed, but all this isn’t scaring Anthony Scaramucci, the former White House director of communications under Donald Trump.
Anthony Scaramucci Has High Hopes for BTC
Having started a bitcoin fund last year, Scaramucci is known more for his time in the digital currency space rather than politics. In a recent interview, he stated confidently that the asset is likely to hit $100,000 within a two-year period, and that it will then climb to $500,000 before the end of the decade. He said:
I think bitcoin will have 100 million-plus wallets and it could be an inflation hedge, but that’s a good five to eight years away. It would be a mistake to be under-invested or not invested in cryptocurrency.
Scaramucci initially stated that bitcoin would hit the $100,000 mark before the end of 2021. However, the currency finished the year on a rather volatile note, initially hitting a new high of around $68,000 in November and then slipping to less than $40,000 by the end of December.
Despite the heavy volatility the currency has endured, Scaramucci believes this is all due to crypto still being quite new and getting settled. He says:
This is early adopting technology. This will be very volatile. There’ll be periods of time where bitcoin will crash, down 50 percent plus, but if you’re willing to zoom out and look at the long-term chart and look at the adoption story, could bitcoin get to $500,000 a coin? I believe it will… The only way you can handle a technology like this is to dollar-cost averaging and buy a little every month.
Earlier in the week, Joe Biden issued an executive order calling for lawmakers to begin developing a plan for the regulation of digital currencies. The order also allegedly opens the door to a U.S. form of national crypto. The move has caused some controversy in that many analysts believe regulating digital currencies could potentially lessen privacy and give the government too much power over a space that’s designed to provide monetary independence.
The Currency Is Still Young
I think over time what will happen is the cooler heads, the more rational, win out. I don’t think the United States wants to cede its leadership in financial services.
In 2021, Skybridge Capital – the bitcoin fund founded by Scaramucci – launched with approximately $310 million in assets under management. While the number seems big on paper, Scaramucci has said that bitcoin is still in its “early innings.” He also said that he believes a “tidal wave of institutional capital” will soon flood the industry.