The founder of investment firm SkyBridge Capital, Anthony Scaramucci, said that long-term bitcoin investors should not worry about the asset's recent correction, as it has a high potential to reach $500,000 in five years. Speaking to Kitco News, Scaramucci noted that the true value of bitcoin is based on the asset's growing network that will take little time to surpass gold.
Would the value of bitcoin be higher than gold?
The hedge fund manager believes that at the moment, bitcoin should not be considered the competitor of gold, pointing out that the precious metal took thousands of years to reach the current market valuation.
At the same time, he said that despite the current volatility in the cryptocurrency market, there would be additional buying opportunities for bitcoin in the future.
He pointed out that the asset was maturing and becoming an inflation hedge following the reduction in high volatility:
"I think eventually bitcoin will be worth half a million dollars, and that will take four to five years. It's going to be a tough ride, but it will certainly be worth it. [...] When you look at it as a store of value, bitcoin outperforms gold, but again, it's still early. I think when bitcoin matures, it will be more valuable than gold because of all the technical properties that are associated with it."
Scaramucci said the market should expect "fairly strict" laws, especially from the U.S., which is reportedly planning to focus on regulating the crypto industry.
"Bitcoin has taken root well despite regulation."
However, the former White House communications director pointed out that despite any government attempts to regulate bitcoin, the asset was far from disappearing, and China was the perfect case study.
He noted that despite China's ban on bitcoin, the asset has still recovered to new record prices.
Scaramucci expects bitcoin to have easy navigation for U.S. investors given that the IRS has classified the digital currency as property.
The SkyBridge Capital founder joins a growing list of analysts who believe bitcoin's current correction is temporary. However, the asset is making minor gains, trading at $37,800 at the time of writing.
Gareth Soloway, the chief market strategist at InTheMoneyStocks.com, thinks bitcoin could dip below $20,000, but argues that the long-term outlook remains optimistic.
The founder of investment firm SkyBridge Capital, Anthony Scaramucci, is more than optimistic about the future of bitcoin (BTC). Indeed, he believes that it is not comparable with gold because it is in every way superior in value. According to Scaramucci, this theory will become apparent to everyone in 5 years when bitcoin reaches $500,000. The restrictions issued by some countries against cryptocurrencies have not hindered their adoption, quite the contrary. The future is definitely looking up for digital currencies.
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