Scaramucci predicts when Bitcoin will become a hedge against inflation

Despite being an outspoken supporter of bitcoin, the founder of the investment company SkyBridge Capital – Anthony Scaramucci – does not believe that the asset has reached the status of a hedge against inflation yet. In his view, this will happen when BTC wallets reach one billion.

In addition, the former White House official believed that the primary cryptocurrency will be subject to mass adoption if giant institutions such as BlackRock introduce products related to it.

Still not a hedge against inflation

In a interview to CNBC, Scaramucci argued that investing in bitcoin to preserve wealth in the current inflationary situation is not an appropriate strategy at the moment. He expects the asset to be “mature enough” and have these features when it reaches one billion wallets globally.

The American admitted that he entered BTC’s ecosystem when there were only 80 million wallets, while today the number has risen to around 300 million.

Similar to some of his previous appearances, Scaramucci stated that the leading digital asset is still in its early days, and just like any other innovation, it needs time to overcome volatility and establish itself as a preferred investment choice.

Not long ago, he compared the ongoing crypto winter to the DotCom bubble of the 2000s. The latter eliminated many pointless projects, but some such as Amazon and eBay survived the crash and are now leaders in their field. Scaramucci believes the bear market in the digital asset industry will have the same effect, and bitcoin will definitely emerge as a winner in the end.

Later, the financier who briefly served as White House communications director during Donald Trump’s administration believes a giant institution could significantly increase bitcoin’s adoption level:

“People don’t pay close enough attention to what BlackRock is doing. If Larry Fink and his team put up a product related to bitcoin that tells you there’s institutional demand out there … I think this is a huge thing that hasn’t been explored as much as it should be.”

Brian Armstrong shares similar thoughts

Two months ago, the CEO of Coinbase – Brian Armstrong – believed that the total market capitalization of cryptocurrency should increase 5-10x so that the asset class can be considered a successful hedge against inflation.

Crypto’s market capitalization at the time of his announcement was roughly $1.1 trillion, and despite the recent volatility, it sits in a similar position now as well.

Currently, gold (historically chosen by many people as a hedge against inflation) has a market value of over $11 trillion. Assuming Armstrong’s view is accurate, that means crypto should catch up with the precious metal.