SkyBridge Capital’s co-CIO highlighted the reasons the Wall Street giant will move on to bitcoin after comparing gold and bitcoin.
Both Bitcoin and gold have seen significant price volatility this year amid controversy over whether the cryptocurrency diverted demand from gold. In April, the digital currency peaked around $ 65,000 before falling. It was worth around $ 36,200 at the time.
On the flip side, gold came dangerously close to entering a bear market in March before reversing direction to offset losses since the start of the year. Anthony Scaramucci’s hedge fund, SkyBridge Capital, which has over $ 7 billion in assets under management, has increased its support for Bitcoin.
Anthony Scaramucci valued Bitcoin
The Wall Street institution has been praising the asset since late 2020, when the price of BTC gained a lot of momentum. Anthony Scaramucci, the company’s owner, has praised cryptocurrencies at every opportunity. These include predicting a price of $ 100,000 by year-end, saying it’s a safe investment like bonds, and claiming it’s better than gold, just like Gayeski.
According to the founder of SkyBridge Capital, the market cap of the cryptocurrency would reach $ 5 trillion if it hit “only half” the yellow metal market cap. With around 18.6 million bitcoins in circulation, this would translate into a price of $ 270,000 per coin.
Troy Gayeski highlighted the primary cryptocurrency
Troy Gayeski, the organization’s co-chief investment officer, said they believe in the future of gold but are more interested in investing in the digital alternative. He also outlined the company’s belief in the primary cryptocurrency while also criticizing the Federal Reserve’s actions since the outbreak of the COVID-19 pandemic.
Investors seek to hedge their positions as the global debt balloon spins out of control and the Fed to “Reduce asset purchases.“SkyBridge, on the other hand, is optimistic about gold’s outlook in terms of price against the dollar.
“In the future, the possibility that gold will hold its rise is quite likely and will hit new highs over the next year“, Projects Gayeski. SkyBridge intends to proceed with its largest digital asset, although gold has done well in similar scenarios in the past.
He said we will stick with bitcoin and cryptocurrency because we believe there are more benefits. You will get a little more juice from the same phenomenon than gold if you acknowledge the volatility of the younger market.
In early 2021, the organization also launched a Bitcoin fund with an initial investment of $ 25 million. Scaramucci bragged about how well the fund is doing, claiming that institutional demand is coming from all quarters.