Investors will need to accept the trajectory and level of volatility in bitcoin as the digital currency becomes more widely adopted globally, SkyBridge Capital’s Anthony Scaramucci said in an interview with CNBC. Following a run to an all-time high above $63,000 in April, bitcoin has swiftly tumbled in a matter of weeks — at one point even more than halving from those earlier highs. Still, the leading cryptocurrency has gained more than 10% since the start of 2021.
Skybridge Capital has about $500 million in bitcoin.
At the time of writing, bitcoin is trading above $34,200, 3.16% up in the last 24 hours, according to CoinMarketCap. “I will point out that bitcoin is still up on the year, so it’s actually been a very good performer this year.” Scaramucci told CNBC’s “Capital Connection” on earlier this week. Skybridge Capital has “about $500 million” in bitcoin, according to Scaramucci, founder and co-managing partner at the firm. He further noted that bitcoin is still only in its early adoption stage and is set to become a “replacement” for gold, adding: “We actually like the upside characteristics and are willing to accept the volatility in bitcoin,” Anthony opined.
Bitcoin adoption will increase massively in the future.
“If you went back to Amazon’s IPO back in 1997, if you held that stock, $10,000 of that stock on its IPO is now worth $24 million. But you would have subjected yourself to eight periods of time where the stock dropped at least 50% as it was scaling, pursuant to Metcalfe’s law,” SkyBridge Capital’s Anthony Scaramucci said. “I’m very confident that we’ll be sitting here a year or two from now and talking about this volatility, but also being amazed at the upward trajectory of bitcoin over the next 24 months,” Scaramucci further opined.