- Bitcoin may be volatile, but it already has strong fundamentals, said SkyBridge Capital founder Anthony Scaramucci.
- He noted that BItcoin's price has the potential to reach $400,000.
- "Bitcoin is a living, breathing thing in the digital space," he added.
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Anthony Scaramucci, American financier and founder of global investment firm SkyBridge Capital, compared Bitcoin (BTC) to the early days of Amazon, during a recent episode of “The What Bitcoin Did” podcast published on January 4.
“I think Bitcoin is Amazon [in] 2000, 2001 or 2002. It’s out there, it’s a winner, but it’s still in the very, very early stages of it. And by the way, if you looked at Amazon stock chart ‘97 to ‘02, you’re like ‘Oh geez, I missed this.’ The thing went from a fraction of a share to a gigantic amount of market capitalization,” said Scaramucci.
Since Bitcoin’s price has gone from $400 to $27,000, he said some people might say, “You’re an idiot, you’re coming in late.”
“My response to that is—no, if anything, we’re still in very early. And the reason why is that it’s still not fully accepted, it’s still harder to buy than you would like it to, it’s not a stock or an ETF, it’s not properly regulated yet in the United States. There’s a lot of things that have to happen here,” Scaramucci noted, adding, “I like where we are. I think we’ve got to that crossover point.”
— Anthony Scaramucci (@Scaramucci) January 11, 2021
Comparing Bitcoin to Amazon yet again, Scarmucci said that Jeff Bezos’s company “is not going to zero” and is a “proven thing now”—and so is Bitcoin. And even if someone could’ve bought 15,000 BTC for $5 each in the past (or paid 10,000 BTC for a couple of pizzas, for example), even today, we are still in the early stage of Bitcoin’s second phase of adoption.
“And trust me, 1% move by a ‘Fidelity,’ a ‘Vanguard,’ a ‘MassMutual,’ a ‘Ray Dalio,’ and those things are $300,000–$400,000 a coin,” Scaramucci surmised.
Furthermore, we are already “beyond the critical mass with Bitcoin” and it is likely that it will be regulated—perhaps onerously—because the government is worried about Bitcoin supplanting the supremacy of the US dollar, Scamucci asserted. But while that could lead to additional volatility, that is not the same thing as a risk.
“Remember, volatility is very different from risk. Volatility [is acceptable] if you’re patient and you understand the fundamentals of what’s going on. If you rode Amazon for 23 years and accepted the 50% declines in its price activity, but you knew the fundamentals were there, then you didn’t really have risk as much as you had to be patient to ride through the volatility,” explained Scaramucci.
“I don’t see the government being able to take out Bitcoin,” he said, adding “That is a living, breathing organism now in the digital space. And it will remain so whether the governments like it or dislike it.”
Well, we all know what Trump thinks.