Scaramucci- 1 billion BTC wallets needed to hedge inflation

Scaramucci- 1 billion BTC wallets needed to hedge inflation

Skybridge Capital CEO Anthony Scaramucci said that BTC has a long way to go. Users may find the cryptocurrency appealing, but it lacks the purchasing power to counteract inflationary pressures in the near term.

According to Scaramucci, Bitcoin wallet bandwidth needs to be increased first. After that, it might be used as a hedge against inflation by investors during times of global economic downturn.

Bitcoin Is Not Yet An Inflation Hedge, Says Skybridge CEO

Scaramucci spoke with CNBC’s Squawk Box on August 22nd. Even if its popularity has grown, Bitcoin’s CEO has stressed that it remains a technical asset with room to expand.

He claims that the asset has little value as a means of protecting against rising prices. First, there would need to be more than a billion Bitcoin wallets, he stated.

Until there are a billion Bitcoin wallets, he said, he doesn’t see it as a hedge against inflation.

At the same time, the number of BTC wallets in existence is a mystery. Estimates, nevertheless, put the number of wallets far over 200 million.

The rising popularity of Bitcoin (BTC) coincided with claims that it might protect its holders from inflation due to its limited number of 21 million coins. As BTC becomes increasingly correlated with the stock market, however, the IMF claims that this story may no longer hold water.

Scaramucci has expressed optimism on BTC and the cryptocurrency sector generally. He brought out how BlackRock had just just issued a private spot BTC trust with Coinbase acting as the custodian. That, according to the CEO, means that institutional investors are showing strong interest in Bitcoin.

Constant Bitcoin Price Expected, Says Coinshare’s CSO

Managing Director for Private Clients at Swan Bitcoin, Steven Lubka, reportedly told Cointelegraph that he still sees Bitcoin as a hedge against inflation. Also, Lubka admitted that the reserve currency was helpless in the face of the unprecedented inflation experienced around the world in 2018.

Supply shocks, he said, not monetary expansion, were the primary reason for inflation. Since Bitcoin is most effective during times of monetary expansion, it would be useless as a hedge against inflation in that context.

In this moment in time, one bitcoin is worth approximately $21,406. From its all-time high of $69,045 on November 11th, 2021, this is a decrease of over 69%.

Additionally, Coinshare’s CSO, Meltem Demirors, was a guest on Squawk Box on August 22nd. Demirors predicted that Bitcoin’s value would remain stable during the third quarter of 2022.

She made this remark due to the rising equities market price link with cryptocurrency.

Orizu Augustine
Orizu Augustine is an experienced crypto writer working for Alltechcraft. Having passion for writing, he covers news articles from blockchain to cryptocurrency and iPhone and Samsung related articles.