Crypto

Wall Street Expert Says What Bitcoin Is Lacking to Hedge Inflation

It would take over a billion cryptocurrency wallets for Michael Scaramucci to make Bitcoin a hedge against inflation.

Some see bitcoin as a way to fight inflation, just like gold, due to the number of bitcoins, which is ultimately limited to 21 million tokens (19.12 million have already been mined, according to Coinmarketcap). But, as we’ve seen, it’s all a bit more complicated because it’s a specific market: a loud voice from Wall Street is trying to clarify.

Michael Scaramucci, does that name remind you of anything? The latter was the White House communications director in 2017 under Donald Trump. He has since reinvented himself well: he is the boss of investment fund SkyBridge and one of the most popular voices in American finance, linking traditional finance and cryptocurrencies.

On Monday, he was interviewed by US media outlet CNBC about the role that cryptocurrencies and bitcoin in particular can play in terms of assets to counter inflation when you have an investment portfolio.

200 million crypto wallets

Michael Scaramucci acknowledges that bitcoin is a monetary asset and therefore has all the qualities to take on the role of an inflation umbrella. With one detail: its expansion to the entire population of the world: there are not enough users and official recognition. Indeed, it is estimated that 200 million wallets hold bitcoins or cryptocurrencies.

“Until you have a billion wallets or more, I don’t think you will consider bitcoin as [couverture] inflation as it is still an early technical asset,” he said.

If the latter is to be believed, there is still a long way to go before bitcoin is finally accepted globally as a hedge against inflation.

Antoine Larigaudri edited by PA.

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