Bitcoin’s Viability as a Store of Value Questioned by Anthony Scaramucci
During a recent appearance on CNBC’s Squawk Box, Anthony Scaramucci, the Founder and Managing Partner at Skybridge Capital, shared his views on Bitcoin (BTC) and its suitability as a reliable store of value. Scaramucci attributed his skepticism towards Bitcoin fulfilling this role to the existing regulatory challenges prevalent within the cryptocurrency industry.
Scaramucci pointed out that despite being compared to gold, Bitcoin has not shown the same level of stability and value appreciation. Contrary to the soaring gold prices, Bitcoin has maintained a relatively stagnant value over the past two years. Consequently, Scaramucci stressed that for Bitcoin to establish itself as a credible store of value, widespread adoption with at least a billion active crypto wallets would be imperative.
Furthermore, Scaramucci delved into the potential implications of Bitcoin’s technology on the US economy. He proposed that incorporating Bitcoin into payment systems and financial rails could lead to substantial cost reductions and enhanced operational efficiency. Nonetheless, Scaramucci acknowledged the existing regulatory hurdles and the absence of a comprehensive framework as key obstacles hindering Bitcoin’s recognition as a store of value.
Despite the challenges highlighted, Scaramucci maintained an optimistic outlook on Bitcoin’s future price trajectory, foreseeing a surge to $100,000. He attributed the slower-than-anticipated price growth to regulatory barriers, market uncertainties, and previous fraudulent incidents. Scaramucci also emphasized the significant impact of Spot Bitcoin ETFs on Bitcoin’s price fluctuations, citing their role in propelling the cryptocurrency to an all-time high exceeding $73,000 earlier this year.
In summary, Scaramucci’s observations shed light on the intricate issues surrounding Bitcoin’s viability as a store of value and underscore the pivotal role that regulations play in shaping its future course. Despite the promising long-term prospects of the cryptocurrency, overcoming regulatory challenges and fortifying industry frameworks will be vital in cementing Bitcoin’s standing in the financial domain.
