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There are many misconceptions about Bitcoin (BTC), especially as it relates to its role in the broader financial ecosystem. Recently, a question from CNBC’s Squawk Box Host Andrew Ross Sorkin was posed to the broader community. The question probes the justifications why Bitcoin fell over the weekend despite claims of it being an inflation hedge and store of value.
Alex DovbnyaResponding to the question, Bitcoin bull Anthony Scaramucci said BTC is neither an inflation hedge nor is it a store of value - yet. He believes the level of global adoption of the coin is low for now, and things will not change much until the coin hosts at least a billion users. These adoption figures, according to Scaramucci, will not take place until about 2026.
Bitcoin is often pitched as a major competitor to gold, an asset that has served as a store of value and a hedge against inflation for centuries. With Bitcoin’s historic growth to a new all-time high (ATH) above $73,000, there has been more over-pitching for the coin.
To Scaramucci, Bitcoin is still an early-stage technical asset that will trade like any risk asset for the foreseeable future. While he pointed out the growth traction thus far, he said Bitcoin indeed has some hedging features, but it still has intense volatility to contend with.
Bitcoin still early
Another major myth Anthony Scramucci debunked is whether or not Bitcoin is still in its early stages. With Bitcoin launched about 15 years ago, he said the argument that BTC is no longer new should be shunted aside.
Yuri MolchanUsing the airplane invention as a case study, he said despite the Wright Brothers inventing the airplane by 1903, critics say the innovation could not be commercialized by 1918. Given how the airplane has evolved to date, Scaramucci is optimistic that Bitcoin will be worth much more in the long term.
Tomiwabold Olajide
U.Today Editorial Team
Vladislav Sopov
Dan Burgin