When Will Bitcoin Become An Inflation Hedge? Scaramucci Explains
Bitcoin An Inflation Hedge
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When Will BitcoinBecome An Inflation Hedge? Scaramucci Explains
Manyinvestors picked interest in Bitcoin, believing it could be a hedge againstinflation. According to an analyst at D.A Davidson, Chris Brendler, BTC couldbecome a hedge because it is decentralized and not a product of a central bank.These opinions and expectations led many people to accumulate large quantitiesof BTC coins.
Butthe recent price fluctuations and speculations in the market are seeminglyoverpowering BTC’s underlying value. Now that inflation is causing havoc ineconomies, many investors are disappointed that Bitcoin couldn’t serve as ahedge as expected.
But a topBitcoin supporter, Anthony Scarramucci, the founder of SkyBridge Capital,believes that BTC hasn’t reached the stage of hedging against inflation.According to the investment company founder, Bitcoin will get that status whenBTC wallets hit 1 billion.
But to reachthat level, Bitcoin must be adopted worldwide. Scaramucci believes that ifgiant institutions such as BlackRock introduce products related to BTC, peoplewill know that institutional demand for crypto is growing. As such, BTC willachieve mass adoption.
UsingBitcoin as a Hedge now is not appropriate
Manyinvestors seem disappointed that Bitcoin became even more volatile during thiseconomic turmoil. But during an interview, Scaramucci advises against investingin BTC to preserve wealth now. According to him, BTC is not yet matured forthat unless the wallets reach 1 billion worldwide.
Recall thaton June 14, Scaramucci mentioned that the crypto winter is like the DotCombubble of the 2000s. In his statements then, Scaramucci pointed out that theincident made companies such as eBay and Amazon the market leaders in theirfield after surviving the bubble burst.
Therefore,the one-time White House Director of Communications believes that the ongoingbear market trend will do the same for BTC after flushing out the meaninglessprojects.
Bitcoin has been making headlines in the media recently. Bitcoin is known as a cryptocurrency that is decentralized, with no trusted third party required for transactions to occur. Recent events have made Bitcoin the most valuable cryptocurrency on earth, as well as a hedge against market volatility.