Although Bitcoin (BTC) remains a desirable asset, according to Anthony Scaramucci, CEO of Skybridge Capital, it has not yet attained the “wallet bandwidth” necessary to qualify as an inflation hedge.
During a Monday Squawk Box segment on CNBC. In order for Bitcoin to start functioning as an inflation hedge, it needs to be kept in around one billion wallets, according to the CEO of a worldwide investment management company.
“Until you get into the billion, billion-plus zone, I don’t think you’re going to see Bitcoin as an inflation [hedge] as it’s still an early adopting technical asset.”
The popularity of Bitcoin wallets
Although the precise number of Bitcoin wallets worldwide is unknown, estimates put the figure at around 200 million.
Given its fixed number of 21 million coins, some hailed BTC in its early years as a potential inflation hedge. This story has evolved over time, though, as more evidence has shown that Bitcoin and the stock market are becoming increasingly connected, according to a recent IMF analysis.
Scaramucci stated that he was still bullish on BTC and the wider cryptocurrency industry, citing recent actions taken by BlackRock to introduce a new private spot Bitcoin trust with Coinbase as the custodian as evidence of the substantial institutional demand for the market leader.
According to Scaramucci, there are presently a ton of short bets in the markets, which might lead to tremendous people having “their faces ripped off when they least expect it.”
BTC’s price is currently $21,383.97, down 68.01% from its all-time high of $68,789 on November 10 of last year.
Meltem Demirors, chief strategy officer at Coinshare, said she anticipates that BTC prices will remain stable throughout the third quarter as long as the price correlation between tech shares and cryptocurrencies persists in her appearance on Squawk Box on Monday.