Bitcoin changes the world – “like Copernicus in the 16th century”: SkyBridge- Capital founder
According to the founder of SkyBridge Capital, Copernicus was the first to theorise that the Earth orbits the Sun. And Anthony Scaramucci compares exactly that to Bitcoin – because BTC revolutionises the concept of money.
Anthony Scaramucci spoke to CNBC’s “Squawk Box” about Bitcoin. In doing so, he said that the world is changing when it comes to money.
To clarify the significance of this, he compared Bitcoin’s Crypto Wealth takeover of finance to the publication of Copernicus’ heliocentric theory.
“It was around 1500 when Copernicus said that we might be revolving around the sun. Things are changing. We have to look at it rationally, we have to accept that if money is a technology that allows us to transfer goods and services efficiently to each other, the technology around us is likely to improve money.”
The consequence of this, Scaramucci suggests, is a move away from the old guard. In this case: gold. Since last August, the shiny metal has been trapped in a descending channel. And what was once the best hedge is now playing second fiddle to bitcoin.
The bitcoin bull case
Scaramucci lays out the Bitcoin bull case, pointing out that the number one cryptocurrency can move much higher in the long run. Furthermore, with institutions flocking in, he sees a maturation point where volatility will eventually smooth out.
To back up this assertion, Scaramucci cites the example of Amazon. In the twelve years between Amazon’s IPO in May 1997 and May 2009, investors enjoyed gains of over 3,600%.
If one had bought Amazon after this period and held it until today, one would have received 640%.
While the returns after 2009 were much lower, the share price performance was also less volatile
“Amazon is now trusted with more stability 20 years later. It got a very big bang because of the pandemic, but just look at the long-term chart, and I think that’s going to happen with Bitcoin.”
Once BTC has fully scaled, he said, people will say, OK, it’s much less speculative now.
Asset price inflation
Given the insane money printing of late, Scaramucci says everything is set for Bitcoin to go higher and hit a new all-time high later this year.
“You have a 40 per cent increase in dollar volume, that will show up in asset prices…”
However, he warned that this situation will exacerbate inequality between the haves and the have-nots. Those with appropriate wealth will rise to the top, while the wealthless will go down.
He personally believes that Bitcoin is the asset to hold in these circumstances – mainly because of its scarcity (even if banks are bashing Bitcoin again…).
Therein lies the “Copernicus moment”. While gold is seen as relatively scarce, there is still no way to determine its supply. For the first time in history, Bitcoin (to buy Bitcoin at eToro guide) represents an asset that is widely accepted as valuable but has a verifiable, fixed supply.