Anthony Scaramucci at SkyBridge Capital told CNBC on Thursday that he believes bitcoin can continue to move higher in the long run and eventually with fewer wild slows, as adoption picks up. It was similar in its outlook for the cryptocurrency that has historically volatile shares of Amazon.
Scaramucci made the comparison in response to a question from “Squawk Box” co-host Andrew Ross Sorkin, who asked the hedge fund founder what will happen to the price of bitcoin if, ultimately, early investors ‘a decision that they can no longer generate external returns, encouraging them to sell and buy other assets that they see as ready for significant benefits.
“Bitcoin is 12 years old. But if you bought Amazon after the 12th year, you got a 64x return on your money from 2009 to 2021,” said Scaramucci, explaining that Amazon’s huge gains in the its first 12 years – gaining more than 3,600% from the IPO in May 1997 to May 2009 – did not stop the stock from rising higher in the next twelve years.
“Amazon is now, 20 years later, trading with more stability. It got a pretty big pop because of the pandemic, but just take a look at its long – term card, and I think that’s going to happen to bitcoin, “he said. “As soon as it’s full scale … you’re going to look at that situation and say, ‘Okay, it’s much more speculative.'”
Bitcoin, created in 2009, has been seeing a meteoric rise since its inception and in recent months. It was trading around $ 58,000 per coin Thursday morning. But just six months ago, the price was at around $ 11,000. This year alone, the world’s largest cryptocurrency in terms of market potential has almost doubled, according to Coindesk data.
Total supply of bitcoin is limited at 21 million. Approximately 18.66 million coins are now in circulation, Coindesk data shows. Supporters see bitcoin’s default supply limit as one reason its price may continue to rise as more investors seek property.
Bitcoin has been prone to wild price movements in its history. In 2017, he put up a huge rally and traded at nearly $ 20,000 per coin in December of that year, the highest level at the time. But then in 2018, in what became known as the “crypto winter,” bitcoin lost about 80% of its value.
Some bitcoin bulls see the current run as different due to more institutional adoption.
For example, companies like Tesla and Square bought the digital coin with cash on their balance sheets; Mastercard plans to open its network to some cryptocurrencies later this year; and Morgan Stanley is poised to become the first major bank in the U.S. to allow bitcoin investors to access bitcoin s funds.
Skeptics question whether bitcoin is an effective trading method or even a stable source of value, as supporters argue it is.
“As a collector, it’s gone up a lot, but it hasn’t gone up at the right times,” New York University finance professor Aswath Damodaran told CNBC Tuesday. “In fact, last year, when stocks were falling apart, bitcoin went down even more. That’s not what you want in a rally,” he said.
Damodaran, known as Wall Street’s “Dean of Valuation” for his company’s analyzes, confirmed that he is not completely against the idea of cryptocurrencies. “I think it’s going to be a good cryptocurrency. I don’t see how bitcoin can be.”
Scaramucci, which owns his company’s bitcoin assets, said bitcoin is still in its “transition period,” as in the early days of Amazon shares. However, he said some of the basic features of bitcoin – such as running on a distributed digital ledger called blockchain – have been crucial for its skyrocketing market cap.
“Bitcoin gained $ 1 trillion faster than all of those companies, mainly because it’s decentralized, so now you’re getting all the C-suite drama and all politics associated with it, away from it, “he said. “It’s a network full of scale, money and a store of value and it’s going to come in over the next 15 years.”
Earlier this year, Scaramucci told CNBC that he estimates bitcoin will reach $ 100,000 per coin by the end of 2021.
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