SkyBridge Capital’s Anthony Scaramucci on Wednesday said that investors need to accept the upward trajectory and volatility level in bitcoin as this digital currency is becoming more widely adopted worldwide.
In the month of April, the value of Bitcoin was reached all time high of above $63,000, and then the price of this digital currency has rapidly tumbled in a matter of weeks. At some point even it reached to the half of all time high. Still, Bitcoin gained more than 10% from the beginning of 2021. Today, the price of bitcoin is close to $33,744, according to Coin Metrics.
Skybridge Capital has almost $500 million in this digital currency, according to Scaramucci.
He expressed, digital currency is still in its early stage and is set to be a replacement for gold. He added, “We actually like this upside trend and accept the volatility in bitcoin.”
Bitcoin is frequently pitched as a potential competitor to gold as a sustainable store of value. At present, although, bitcoin’s price is exponentially more uncertain than that of gold.
According to Metcalfe’s law, the value of any network is directly proportional to the square of its users. The research department of Skybridge expects that by 2025 bitcoin users will reach a billion. At present there are 125 million bitcoin users, Scaramucci said.
Scaramucci cites example of Amazon’s IPO back in 1997 and of Phone system in the early 1900s. He expressed that exactly that’s sort of what is happening to bitcoin right now.
Scaramucci said that he is very confident that people will talk about this volatility a year or two from now and will be amazed at the upward trajectory of bitcoin in the next two years.