Hedge funder Anthony Scaramucci says Bitcoin could soar much higher in the current cycle.
In a new interview with Yahoo Finance, the founder of alternative investments firm SkyBridge Capital says Bitcoin could easily break through the $100,000 mark.
The former White House Communications Director argues that the ongoing monetary debasement, which is likely to increase the dollar supply by 40% in the coming 12 months, has made Bitcoin an attractive store of value.
Given the macroeconomic backdrop, he says BTC could hit $100,000 by February 2022.
“We have 23.6% more dollars in production and in our money supply than we did six months ago. And if you really analyze the $1.9 trillion stimulus, it’s very likely that we’ll get another 17% more dollar production. So you’ll be sitting here in a 12-month period of time you’ll have 40% more dollars or 40% more fiat currency. And so if you’re looking at dollars in your bank account you’re like okay, wait a minute, this may not be the store of value that I need from a corporate standing. And Bitcoin, which is an expanding monetary network, now fully robustly scaling pursuant to Metcalfe’s Law, you could be saying to yourself, okay I’m losing value in dollars but I’m not necessarily losing value in Bitcoin.”
Scaramucci adds that besides currency debasement, Bitcoin’s digital nature and user growth is making it more attractive to corporations.
“I think that’s the dilemma for CFOs right now is they’re watching this dollar production, this proliferation of dollars. They’re saying to themselves, ‘Okay maybe I need to have some of this.’ It’s very fungible, it trades in a liquid manner, it trades at a millisecond, and it is scaling. Over 100 million people are using bitcoin today. Very likely that a billion people will be using it in five years.”
He says he’s not surprised to see firms and institutional investors increasingly investing in the flagship cryptocurrency.
“…the market intel out there is that there are many corporations that are thinking about adding Bitcoin to their balance sheets. And there are institutional investors like BlackRock. BlackRock’s already signaled last month that they gave approval to purchase Bitcoin in some of their larger mutual funds, and to purchase Bitcoin futures.”
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