Shortly after launching a crypto-focused investment fund, U.S. investor and former White House Communications Director Anthony Scaramucci said that Bitcoin is a better store of value than gold.
According to a Jan. 5 Bloomberg report, Scaramucci suggested that Bitcoin can fill the role currently held by gold in the finance world much better. He said:
“Bitcoin is better at being gold than gold is at being gold. […] It’s easier to store, it’s harder to steal, it’s more portable, and so therefore, it’s become the ledger or the storage of the future in terms of the storage of value.”
The “harder to steal” part of that comment may be somewhat questionable. But then, CipherTrace did report that losses from crypto hacks, thefts, and fraud decreased to a mere $1.8 billion in the first 10 months of 2020, according to Reuters.
Still, Scaramucci is the latest traditional finance heavyweight to join the ranks of open Bitcoin proponents. As Modern Consensus reported in mid-December, the participation of institutional investors and big-name investors is the main reason why many believe this Bitcoin bull run to be different from the previous ones.
Scaramucci’s comments came on the heels of his Jan. 4 announcement of a Bitcoin fund by SkyBridge Capital—the venture capital firm that he founded. He commented on the launch:
“We believe Bitcoin is in its early innings as an exciting new asset class. […] With the institutional quality custody solutions available today, we believe the time is right to allocate capital and provide our clients access to the digital assets space.”
Skybridge Capital’s new fund started at about $25 million and has since grown to over $40 million thanks to a combination of new cash and Bitcoin’s skyrocketing price.
Scaramucci said that his firm is “a very big believer that Bitcoin is effectively going to become digital gold.”
He also compared Bitcoin’s market capitalization to gold’s, noting that if the new digital gold’s market cap were to reach just half of old gold’s—about $5 trillion—BTC’s value would increase tenfold.
Earlier this week, JPMorgan Chase also suggested that Bitcoin’s price will reach six figures. But, it saw a long time frame, predicting that $146,000 is only reachable after Bitcoin’s volatility decreases enough to satisfy more big mainstream investors. That, it said, could take years.
Scaramucci’s announcement explains that Wall Street firms have mostly avoided crypto assets due to security concerns, but SkyBridge Capital believes that its new Bitcoin fund will help ease this concern.
The firm’s president and CEO Brett Messing spoke highly of Bitcoin, suggesting that it belongs in all investment portfolios:
“Bitcoin is leading a digital monetary revolution around the world… We believe the onus has shifted from ‘why are you investing in Bitcoin?’ to ‘how are you not investing in Bitcoin?”