Anthony Scaramucci Says Holding Bitcoin As Safe As Owning Bonds And Gold

 

Anthony Scaramucci, the head of SkyBridge Capital and former White House communications director, believes Bitcoin’s (BTC) value proposition has strengthened significantly now that governments have addressed many of the risks associated with the digital asset.

In an opinion article published on CNN, Scaramucci and fellow SkyBridge executive Brett Messing  argue that Bitcoin has become a viable option for long-term investors seeking refuge from inflation. The authors also claim that holding Bitcoin is far less risky today than it was a few years ago when regulations and infrastructure were still underdeveloped.

Bitcoin’s growth has “caused government and institutions to step in and address many of the risks associated with the digital currency,” the authors wrote, referring to the decision by the Office of the Comptroller of Currency to authorize banks to provide cryptocurrency services.

They continued:“… increased regulations, improved infrastructure and access to financial institutions — like Fidelity — that hold investors’ money have made bitcoin investments as safe as owning bonds and commodities like gold, which are also used to balance portfolios.”

SkyBridge Capital made a big splash last month when it filed an application with the U.S. Securities and Exchange Commission to launch a Bitcoin hedge fund. The SkyBridge Bitcoin Fund LP launched a few weeks later, with Fidelity serving as custodian and Ernst & Young handling the auditing.

Institutional capital was a major catalyst behind Bitcoin’s 300% rally in 2020, culminating in a new all-time high near $42,000 on Jan. 8. So-called smart money investors are beginning to view Bitcoin as a form of digital gold – one with potentially much higher upside than precious metals.

[image:pixabay]

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