Bitcoins (BTC) are often subject to misunderstandings, particularly regarding their place in the larger financial market. Lately, CNBC’s Squawk Box host Andrew Ross Sorkin raised a query to the public: Why did Bitcoin decline over the weekend, given its reputation as a shield against inflation and a valuable store?
In response to the query, Bitcoin advocate Anthony Scaramucci stated that Bitcoin isn’t functioning as an inflation protector or a store of value just yet. He opines that the worldwide acceptance of the cryptocurrency is currently insufficient for this purpose. This situation may not improve significantly until Bitcoin garners at least a billion users, which he predicts will occur around 2026.
Bitcoins are frequently described as a formidable rival to gold, an asset that has long been used as a means of preserving value and shielding against inflation. With Bitcoin recently reaching a fresh record high price of over $73,000, there has been an increased hype and enthusiasm surrounding the digital currency.
For Scaramucci, Bitcoin is currently an emerging technological asset that will behave like any other risk asset in the near term. Although he acknowledged its impressive growth so far, he emphasized that Bitcoin possesses some protective qualities, but it continues to face significant price swings.
Andres Sorkin raised a valid query over the weekend: Why has Bitcoin dropped in value if it’s meant to be a shield against inflation and a store of value? However, it’s crucial to keep in mind that it doesn’t possess those characteristics at the current level of global acceptance. Instead, Bitcoin is still an emerging technological asset in its infancy.
— Anthony Scaramucci (@Scaramucci) April 16, 2024
Bitcoin still early
A common misconception Anthony Scaramucci clarified is the belief that Bitcoin has gone past its early stage due to its 15-year existence. According to him, this perspective needs to be dismissed.
Using the example of the Wright Brothers and their invention of the airplane in 1903, some skeptics argue that it was not possible for this innovation to have gained commercial success by as late as 1918. Nevertheless, Scaramucci remains hopeful about Bitcoin’s future value based on how significantly the airplane has advanced since then.
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2024-04-16 15:26