Famous hedge fund manager Anthony Scaramucci Bitcoin (BTC), Ethereum (ETH) and of Algorand (ALGO) believes it will replace gold as the best assets to hedge against inflation.
In a speech on CNBC’s Squawk Box, Scaramucci explains how Bitcoin and crypto represent generational change towards new technological advancement, as DVDs and rotary phones have been shelved as a result of innovations; He claims that BTC and cryptocurrencies will also replace gold.
“Listen, I will never underestimate gold; It has a 5,500-year history of delivering a store of value, but as with everything in our society, when there is a big improvement in a technical feature, things tend to get overshadowed.”
We had DVDs and switched to Netflix and streaming. The Satoshi Nakamoto whitepaper has ushered in a fundamentally new era, and the technicalities associated with Bitcoin are infinitely superior to gold: You can move it around, store it almost inexpensively – and it has a ledger that is completely on target. You cannot hack it.
So, with 21 million coins and its scarcity – remember, we only have 65 percent of the gold mined right now – the shortage of supply, the specs, I believe it will outperform gold over time.
But right now, Bitcoin is progressing at the pace that people like Michael Saylor and Cathie Wood predict it will, eventually eclipsing gold. Today it has a market cap of about $1.2 trillion and gold is worth about $11 trillion. But I think Bitcoin is getting there, just as we use our smartphones and not our flip phones today.”
While Scaramucci believes that both gold and Bitcoin can rise together in the face of inflationary pressures, he believes that digital assets such as Bitcoin, Ethereum and Algorand are more likely to increase exponentially over time.
“So, I think gold will be fine too, but it’s kind of a straight line situation… Is it possible to go up gradually? Yes, but the scalability of features like Bitcoin and Ethereum and Algorand in their environment [ve] I think it could be thrown exponentially due to security issues.
Can the price of gold rise? Definitely. If inflation is predicted to be 6%, will gold rise? Certainly. But I would put my money in Bitcoin and I encourage my clients to do the same… And I believe Bitcoin is just getting started.
so for me [altının] There is potential to rise, but I wouldn’t be surprised if Bitcoin rises at an exponential rate while gold rises at a linear rate.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.