Scaramucci: investments in bitcoin as safe as those in gold
The co-founder of SkyBridge Capital, Anthony Scaramucci, claims that investments in bitcoin are now as safe as investments in gold and other assets.
Yesterday, an opinion piece by Anthony Scaramucci and Brett Messing was published on CNN’s website claiming that investments in BTC are now much less risky than in the past thanks to new regulations and infrastructure created in the meantime.
The two authors admit that, until recently, investments in bitcoins involved by Bitcoin Union very high risks, which were not suitable for institutional investors, for example.
The issue is not only price volatility – a feature many traders appreciate – but above all structural issues that most other asset classes do not have to worry about, such as private keys, passwords, and theft, which can make purchased BTCs disappear in an instant.
According to Scaramucci and Messing, the rapid growth of bitcoin has resulted in governments and institutions stepping in to address many of the risks associated with this type of investment, for example by authorising banks to provide custody services.
„In short, bitcoin has matured – although it is still in an early adoption phase – and now offers significant long-term value.“
So while it is now possible for everyone, including institutional investors, to invest in bitcoin without taking too much risk in terms of the custody and storage of the tokens, the huge amount of dollars created from nothing and distributed in the markets in 2020 creates significant inflationary prospects to protect against which many investors are hoarding BTC.
Why investing in Bitcoin has become safer
Scaramucci and Messing in fact admit that bitcoin is by its very nature „inflation-proof“, since there can only be a maximum of 21 million BTCs. The rest is done by the law of supply and demand, thus making bitcoin a limited asset in demand.
For these reasons, combined with increased regulations and the entry of various financial institutions into this market, investments in bitcoin have become as safe as owning bonds and commodities such as gold, and are also being used to balance portfolios.
After stating this Scaramucci and Messing also quickly address the issue of the high volatility of the BTC price.
They believe that much of this could be due to the fact that it is a completely new and deregulated asset class, but warn that this is changing, not least because of the entry of major players such as macro funds, large hedge funds and life insurance companies into this market.