Anthony Scaramucci says crypto investors should ride out the dotcom-style crash as it's early days for bitcoin
Anthony Scaramuccisaid cryptoinvestors should ride out the dot-com style crash in prices.
- "I think it is nonsensical to expect just an asymmetric 45-degree line in any story as new as
bitcoin," he said.
- The hedge fund manager said he expects bitcoin wallets to go up to half a billion by 2024.
Bitcoin's recent price crash doesn't necessarily mean the cryptocurrency is faltering, crypto investor Anthony Scaramucci believes.
A $10,000 investment in Amazon at the time of its initial public offering would have generated gains of $22 million today, he added.
"Ultimately, it's about buying quality and recognizing that bitcoin — and I've said this on air many times — it's not a store of value at this moment," Scaramucci said. "It's not technically a currency at this moment."
"What it is, is an early-adoption technology, an early-adoption technical story. With that, there's going to come a lot of volatility," he added.
Bitcoin has fallen from a record high of almost $69,000 in November to about $36,480 at last check Tuesday, according to CoinGecko data.
The crypto asset this week sank to a six-month low, and it is already down 20.9% in January. It began the year around the $45,650 mark, after trading sideways throughout December.
Earlier this month, the former White House communications chief said he wasn't buying the dip in bitcoin and predicted more swings in price for the token.
"Bitcoin is going to have, in my opinion, possibly a billion wallets as we get to 2024 and so, people should ride this stuff out," Scaramucci told CNBC's Andrew Ross Sorkin.
"I think it is nonsensical to expect just an asymmetric 45-degree line in any story as new as bitcoin."
While there is no exact figure on the exact number of active bitcoin wallets in the world, data from Crypto.com pegs it at roughly $144 million.
Bitcoin is seen by many as a hedge against inflation, since its limited supply is supposed to have a natural advantage over the US dollars, whose supply can always be increased.
But it has been showing more correlation with equities lately, with its price falling along with other risk assets as the Federal Reserve readies itself to start tightening monetary policy by hiking interest rates.
Scaramucci himself though doesn't think bitcoin is a good inflation hedge, and has previously called it "too immature."
Bitcoin's sell-off has skeptics ridiculing its potential again, and "Dr. Doom" economist Nouriel Roubini has said this must be a "painful" trade for retail traders who bought into the frenzy in November.
Still, Scaramucci is willing to bet that more people own bitcoin by the end of this year than they did in 2021.
Read More: The head of financial strategy for a crypto-finance firm breaks down why bitcoin could plunge further to between $18,000 and $20,000 this year before bouncing back — and shares 4 high-quality altcoins to scoop up when the market bottoms out
- A college is removing its vending machines after a student discovered they were using facial-recognition technology
- 11 states pay more in federal taxes than they get back - here's how every state fares
- Steve Jobs once said the best managers are 'individual contributors' who aren't interested in managing people
- Fuel your morning: Wholesome South Indian breakfast ideas for health
- Vodafone Idea shares tumble 14%, mcap erodes ₹10,806.7 cr
- National parties declare income of ₹3,077 cr in 2022-23; BJP has highest share
- Human trials may reveal efficacy of new Rs 100 cancer pill: Docs
- Multiplexes' revenue growth to dip to 15% in FY25 as OTTs crimp profit margins