Bitcoin Won’t Be A Hedge Against Inflation Until It Has 1B Wallets – Scaramucci

Bitcoin won’t be a hedge against inflation until it has 1 billion wallets, according to Skybridge Capital CEO Anthony Scaramucci. While BTC remains an appealing asset, according to him, it has still not attained the “wallet bandwidth” necessary to be called an inflation hedge.

On CNBC’s Squawk Box on August 22, the global investment management CEO claimed Bitcoin was still too much of an early adopter technical asset that would need to be stored in roughly a billion wallets before it could operate as an inflation hedge.

“Until you get into the billion, billion-plus zone, I don’t think you’re going to see Bitcoin as an inflation [hedge] as it’s still an early adopting technical asset.”

Although the precise number of Bitcoin wallets in the world is unclear, estimates peg the figure at about 200 million.

Given its limited number of 21 million coins, some viewed Bitcoin as a potential inflation hedge in its early years. This story has shifted over time, with Bitcoin becoming increasingly connected with the stock market, according to a recent IMF analysis.

“#Bitcoin is still not a mature enough asset to be regarded as a potential inflation hedge,” says @scaramucci on $BTC. “You just don’t have the wallet bandwidth with Bitcoin. It’s still an early adopting technical asset.” pic.twitter.com/YTsy6W3HGU

— Squawk Box (@SquawkCNBC) August 22, 2022

Scaramucci stated that he is still positive on Bitcoin and the wider crypto market, citing recent actions by BlackRock to form a new private spot Bitcoin trust with Coinbase as the custodian – a proof that the top cryptocurrency has significant institutionalized demand.

Scaramucci believes that the markets are presently saturated with short positions, which could lead to individuals having their faces torn off when they least expect it.

Steven Lubka, managing director of private clients at Swan Bitcoin, stated in a recent interview that Bitcoin could still be regarded an inflation hedge.

While Lubka agrees that Bitcoin has failed to operate as an inflationary hedge throughout this year’s global inflation events, he argues that this inflation has been generated mostly by supply shocks rather than monetary growth, which Bitcoin may hedge against more successfully.

Bitcoin’s price is at $21,406, down 69.01% from its all-time high of $69,045 on November 11 of last year.

Coinshare’s chief strategy officer Meltem Demirors stated on ‘Squawk Box’ on Monday that she anticipates Bitcoin prices to remain unchanged during the third quarter as the price link between tech shares and cryptocurrencies persists.

“With #Bitcoin we’ve seen a lot of buying on dips,” says @Melt_Dem. “While internally there’s a lot of enthusiasm within the #crypto community around the merge… I don’t think there’s a lot of new capital coming in to buy #Etherium on these changed fundamentals.” pic.twitter.com/8KBiRHfT1f

— Squawk Box (@SquawkCNBC) August 22, 2022

Bitcoin won’t be a hedge against inflation until it has 1 billion wallets is a very bold statement in an era where previous conceptions about cryptocurrencies are being shatter daily and redefined.

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