Bitpush Skybridge Capital co-founder: Bitcoin is like the early Amazon stock, better than gold, it is worth buying now -

Anthony Scaramucci, co-founder of the well-known hedge fund Skybridge Capital, has once again reiterated his long-term bullish stance on Bitcoin.

Scaramucci told CNBC’s “Squawk Box” on Thursday that bitcoin’s trading volatility will decrease over time and it’s not too late to buy bitcoin now.

Many investors who are bearish on Bitcoin have criticized its volatility, with Bitcoin trading around $58,000 at press time. Just six months ago, it was trading at $11,000.

Scaramucci believes that the observation time should be extended. He compares the prospects of Bitcoin with Amazon stock. He said: "Bitcoin is 12 years old. However, if you bought Amazon after the 12th year, your return on capital from 2009 to 2021 would be 64 times. Today, 20 years later, Amazon's trading is more stable. If you look at the long-term trend chart, I think Bitcoin's trend will be similar."

He explains that Amazon's massive gains in its first 12 years (more than 3,600% from its IPO in May 1997 to May 2009) did not stop the stock from continuing to soar in the following twelve years.

Amazon stock price performance from 2009 to 2021, image source: MacroTrends

Scaramucci said bitcoin is still in a "transitional period," just like Amazon stock was in its early days. Some of bitcoin's fundamental features, such as running on a distributed digital ledger based on blockchain, are key to its soaring market value.

Bitpush data shows that Bitcoin has experienced rapid growth in recent months this year. Its market value has almost doubled this year alone. This week, Morgan Stanley became the first banking giant to provide Bitcoin funding exposure to its clients.

"Bitcoin will reach a market value of $1 trillion faster than all of these companies, primarily because it is decentralized, there are no executive struggles or other politicized elements, and it is a fully expanded currency network and store of value, and it will be achieved in the next 15 years," Scaramucci said confidently.

Speaking of gold, Scaramucci emphasized that Bitcoin plays the role of currency as a technology, telling host Andrew Ross Sorkin: "The world is changing."

“In a lot of ways, if you look at it, it’s better than gold. It’s easier to store, it can be transferred faster, and that value — the trusted network — is growing.”

Saifedean Ammous wrote in The Bitcoin Standard: “Bitcoin is best thought of as a distributed software for moving money around: in a currency that is immune to unexpected inflation and that does not rely on a trusted third party.”

Comparison of investing $1 in gold and Bitcoin over 11.4 years. Image credit: Woobull

Scaramucci has been a staunch Bitcoin supporter and earlier this year predicted that the price of Bitcoin would reach $100,000 by the end of 2021.

Image credit: Woobull, MacroTrends

Author: Mary Liu

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