Anthony Scaramucci appeared on CNBC’s Squawk Box to talk Bitcoin. In doing so, he said, the world is changing when it comes to money. To illustrate the significance of this, he compared Bitcoin’s takeover of finance to the publishing of Copernicus’s heliocentric theory.
“It was 1500 something when Copernicus said we may be revolving around the sun. Things do change. We have to look at it rationally, we have to accept that if money is a technology that allows us to transfer goods and services to each other efficiently, the technology around us would likely improve money.”
The upshot to this, Scaramucci implies, is a falling away from the old guard. In this case, gold. Since August last year, the shiny metal has been caught in a descending channel. And what was once the go-to hedge now plays second fiddle to Bitcoin.
The Bitcoin bull case
Scaramucci lays out the Bitcoin bull case by saying he believes the number one cryptocurrency can move much higher over the long term. What’s more, with institutions coming in their droves, he sees a maturation point where volatility will eventually smooth out.
To back up this claim, Scaramucci gives the example of Amazon. In the twelve years from Amazon’s IPO in May 1997 to May 2009, investors enjoyed over 3,600% gains. Buying Amazon after this period, and holding to the present, would have returned 640%.
While the returns were significantly fewer post-2009, its price action was also less volatile.
“Amazon now, 20 years later, is trading with more stability. It got a very big pop because of the pandemic, but just take a look at its long-term chart, and I think that will happen to bitcoin.
Once it fully scales, you’re going to be looking at that situation and saying, ‘OK, it’s way less speculative.’”
Money printers will see asset price inflation
Given the insane money printing in recent times, Scaramucci says everything is aligned for Bitcoin to move higher as the year goes on.
“You’ve got a 40% increase in dollar volume, that’s going to show up in asset prices…”
However, he warned that this situation would heighten the disparity between the haves and have-nots. Those with appropriate assets will rise to the top, whereas the asset-less will sink. Adding, he personally believes Bitcoin is the asset to hold in this circumstance, primarily due to its scarcity.
Therein lies the “Copernicus moment.” While gold is considered relatively scarce, there is still no way to determine its supply. For the first time in history, Bitcoin represents an asset widely accepted as valuable but with a verifiable fixed supply.
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