Bitcoin is scarce, valuable, and should be part of your 401(k), Anthony Scaramucci says
Bitcoinstands to be the best-performing asset in the next 10 years and should have a spot in retirementportfolios, Anthony Scaramuccitells 401K Specialist magazine.
- Scaramucci said purchases of the volatile
cryptocurrencyshould be made in "bite-size" chunks.
- Bitcoin is "the technology that people are going to use for a large swath of commerce" over the next 100 years, said SkyBridge Capital's founder.
Bitcoin should be a part of people's retirement accounts as the cryptocurrency's rewards outweigh its risks, Anthony Scaramucci, the founder of investment firm SkyBridge Capital, said in an interview with 401K Specialist, a magazine that covers defined contribution plans.
Bitcoin purchases should be "in bite-size, digestible chunks," so that clients, including plan participants, will be comfortable holding the volatile asset, he told 401K Specialist magazine in an article published online Wednesday.
Bitcoin has been on a turbulent and mostly downward ride in May, rocked by worries ranging from China's threats to restrict mining and trading activities surrounding the largest cryptocurrency to Tesla's decision to halt taking bitcoin as payment for its electric vehicles because of environmental concerns.
Bitcoin, which is prone to big price swings, has dropped about 32% so far in May to trade below $40,000.
But bitcoin's volatility is one reason the digital currency should be part of a retirement portfolio, he said.
"People can trade within their 401k without tax consequences," Scaramucci said. "If we're right about Bitcoin and I was your financial advisor, I would tell you that over the next 100 years, this is the technology that people are going to use for a large swath of commerce on the planet."
Bitcoins "are scarce, and they're going to be valuable. For that reason, I do think it's appropriate to own a few in a retirement account," he said.
Scaramucci earlier this month defended the slide in bitcoin's price in a Bloomberg interview, saying bitcoin has been able to "maintain its supremacy as the apex predator in digital currency."
401K Specialist said Scaramucci recommends that non-professional investors have bitcoin exposure of no more than 5% of their retirement portfolios. SkyBridge's bitcoin exposure has grown to more than $500 million, the magazine reported and noted that the money manager projects bitcoin will hit $100,000 this year.
Bitcoin "was the best performing asset over the last 10 years, and I predict it will be the best performing asset over the next 10 years," said Scaramucci.
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