Bitcoin (BTC) is not a hedge against inflation until it has reached 1 billion wallets, SkyBridge Capital CEO and founder Anthony Scaramucci said. Speaking to the media on May 25, Scaramucci criticized the crypto community for speaking about Bitcoin as if it is a hedge against inflation.
The total global market value of Bitcoin has touched an all-time high of around $330 billion while the cryptocurrency’s price has steadily grown by over 60% in 2020 so far.
While most consider gold to be a traditional hedge against inflation, some have argued that Bitcoin can also be used for this purpose because its supply is fixed and it does not pay interest.
Bitcoin is not a hedge against inflation in the same way gold is for many people, according to recent news. He explained that unlike gold or other commodities, bitcoin is not a currency—and therefore cannot be used as a store of value or a medium of exchange in the same way.
However, the entrepreneur noted that he believes the digital asset could provide protection against government currency manipulation and “financial repression”—when central banks artificially suppress interest rates in order to encourage spending by consumers and businesses—if it reaches 1 billion addresses.
Not Possible to See Bitcoin As An Inflation Hedge Now
Bitcoin is not a safe haven asset. It has been used as such and will be again, but it’s not presently one.
That’s according to Anthony Scaramucci, founder of the investment firm SkyBridge Capital and former White House communications director under President Donald Trump.
In an interview with CNBC on Thursday, Scaramucci said that he doesn’t think Bitcoin (BTC) can be considered a hedge against inflation until it hits 1 billion wallets:
The reason why I say that is because I’m old school in the sense that when you look at equities or bonds or currencies as hedges against inflation.
I want something that is easily accessible to me if there’s an emergency where my family needs money fast, where I need someone else’s money fast and I need liquidity fast so they can get cash back into their hands quickly enough so they don’t have to lose any value in terms of purchasing power through inflationary pressures.