Benzinga - Well-known hedge fund manager Anthony Scaramucci discussed his views on Bitcoin going forward, why he likes the token and a potential price target during an interview on CNBC.
Scaramucci has a long history in the financial sector, starting his career at Goldman Sachs before founding multiple hedge funds and even serving a short stint as the White House communications director. He is a known advocate for Bitcoin (BTC).
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In the interview, Scaramucci said that he likes Bitcoin from a technical point of view.
"It's decentralized in a way that makes it very powerful. The network itself is scaling," he said. "If you think about the way we treat money in our society over the last 5,000 years, Bitcoin checks all of the boxes. The only box it doesn't check is central bank manipulation, which I think makes it way more powerful."
Scaramucci is an advocate for the technology behind Bitcoin, which has not yet been adopted by enough people to fully realize its potential.
"Bitcoin is on an adoption curve. If you go back to Web1, Bitcoin is sort of in the 1999 point in the spectrum. … It won't be an inflation hedge or a store of value — until you get over a billion users," he said.
According to Scaramucci, Bitcoin is on the cusp of a massive wave of adoption. However, he does not believe that the adoption will be large enough to reduce the volatility of Bitcoin.
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In terms of price targets, he said, "You could have 10% to 15% downside just because it is still a risk-on/risk-off asset. But long-term, I think this thing trades to $170,000, probably to $200,000, and that's consistent with where it's been over the 15 years of Bitcoin."
When asked about the potential for a Bitcoin crash, which was brought up after the comparison of Bitcoin to Web1.0 in 1999, Scaramucci said, "If you are willing to hold that asset, which we are, over a rolling four-year period of time, no one has ever lost money in Bitcoin."
Scaramucci noted that Bitcoin is still relatively young, and he believes there is still strong upside potential in the future if you can stomach the ups and downs for several years or more.
To end the interview, Scaramucci said that he and his team believe that Bitcoin can surpass the market capitalization of gold. The total amount of above-ground gold reserves is valued at around $16 trillion. So, if Scaramucci is correct and Bitcoin reaches a market cap of $16 trillion, a single BTC could be worth more than $800,000. This is an increase of over 1,100%.
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