BTC Must Reach 1 Billion Wallets To Hedge Inflation – Scaramucci
The CEO of the global investment firm Skybridge Capital, Anthony Scaramucci, noted that BTC still has a long way to go. Although the digital currency is attractive to users, its wallet bandwidth is still not enough for it to hedge against inflation.
Scaramucci believes the wallet bandwidth of Bitcoin would have to increase first. After that, investors may use it as a hedge against inflation during global recessions.
BTC Not Yet An Hedge Against Inflation – Skybridge CEO
On August 22nd, Scaramucci had a discussion with Squawk Box on CNBC. The CEO noted that BTC is still growing as a technical asset despite its increased usage.
According to him, one cannot consider the asset as a hedge against inflation. He said the number of BTC wallets would have to be over a billion first.
“Until BTC wallets reach the billion zone, I do not think it is a hedge against inflation,” he stated.
Meanwhile, the total number of BTC wallets worldwide is unknown. However, estimates predict that the wallets are over 200 million.
When BTC started to gain prominence, several proponents said it could serve as a hedge against inflation since it had a fixed supply of only 21 million. However, according to the IMF, this narrative may no longer be tenable as BTC’s correlation with the stock market is increasing.
Meanwhile, Scaramucci said he is bullish about the crypto market, including BTC. He mentioned BlackRock’s recent move to issue a private spot BTC trust with Coinbase serving as the custodian. The CEO said this signals high demand for Bitcoin from institutional investors.
BTC’s Price Will Remain Flat – Coinshare’s CSO
According to Cointelegraph, Swan Bitcoin’s managing director for private clients, Steven Lubka, believes BTC is still a hedge against inflation. Meanwhile, Lubka acknowledged that the flagship currency could not act as a shield against the high global inflation this year.
However, he argued that supply shocks and not monetary expansion were the major cause of the inflation. Therefore, BTC could not be an inflation hedge because it usually works in a monetary expansion situation.
At the time of writing, the price of BTC is trading at $21,406. This is a drop of about 69% from its ATH of $69,045 recorded on November 11th 2021.
Furthermore, Meltem Demirors, the chief strategy officer (CSO) of Coinshare, also spoke with Squawk Box on August 22nd. Demirors stated that she believes the price of BTC will stay flat throughout Q3 2022.
She said this because of the increasing price correlation between cryptocurrencies and the equity market.
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