Anthony Scaramucci says he accepts bitcoin's volatility

Anthony Scaramucci claims to accept bitcoin volatility - Anthony Scaramucci on Trump 1024x768According to Anthony Scaramucci of SkyBridge Capital, investors will have to accept bitcoin's trajectory and level of volatility as the digital currency becomes more widely adopted globally.

Over time, bitcoin will take the place of gold

After a run to an all-time high above $ 63.000 in April, bitcoin's price plummeted rapidly within a few weeks, at one point even more than half its previous highs. However, it has gained more than 10% since the start of 2021. As of 2:35 am ET on Wednesday, the price of bitcoin was $ 33.744, according to data from Coin Metrics.

"I will point out that bitcoin is still growing over the year, so it was actually a very good result this year," Scaramucci told CNBC's "Capital Connection" on Tuesday.

Skybridge Capital has "about $ 500 million" in bitcoin, according to Scaramucci, the company's founder and co-manager, as well as a CNBC associate.

He said bitcoin is still only in its early adoption phase and is set to become a "replacement" for gold, adding, "We actually like the upside characteristics and are willing to accept bitcoin's volatility."

The largest cryptocurrency in the world by market capitalization, according to CoinMarketCap, is often presented as a potential rival to gold as a long-term store of value. At the moment, however, the price of bitcoin tends to be exponentially more volatile than that of gold.

Bitcoin will rise again

“If we go back to Amazon's 1997 IPO, if you owned those shares, $ 10.000 of those shares on its IPO are now worth $ 24 million. But you would have been subjected to eight time periods where the stock fell by at least 50% as it was scaling, according to Metcalfe's law, ”he said.

Metcalfe's law states that the value of a network is proportional to the square of its users. Skybridge's research department predicts bitcoin users will hit one billion by 2025, up from 125 million today, Scaramucci said.

“Think of the telephone system from the early 1900s, when people started buying those phones and connecting with each other,” he said. "That's a little bit what's happening to bitcoin right now."

"I am very confident that we will be sitting here in a year or two and talking about this volatility, but we will also be surprised by bitcoin's upward trajectory over the next 24 months," said Scaramucci.

Therefore, these recent declines may suggest to many that this is the best time to invest. The important thing is to always do it with caution and using money that you are not afraid of losing if things go wrong. Also, to facilitate cryptocurrency trading, there are automated software such as Bitcoin Pro which help beginners to enter this sector by investing a minimal amount. Therefore, if the value were to grow, the potential profits would be huge.