There is inflation when money becomes more cumbersome than commodities. – Anthony Scaramucci, CEO of Skybridge Capital, believes that Bitcoin is far from achieving the goal that everyone would like to see, namely a real investment that would cover inflation galloping.
Buy BTC yes, but not to hedge!
For the businessman, even if the Bitcoin continues to be a very attractive asset, he did not cross the minimum threshold for the adoption to be realand that it constitutes a safe haven.
To reach this stage, it would be necessary, according to him, that moreone billion people adopted it. At present, estimates (it is difficult to know a real figure) announce that there are about 200 million addresses worldwide.
“Until you get into the billion zone, over the billion even, I don’t think Bitcoin will play the role of an inflation hedge because it’s still an early adopter technical asset. »
If we follow Scaramucci’s reasoning, with one billion bitcoin addresses, knowing that the maximum cap will be 21 million BTC, each address would hold on average 0.021 BTC (about $450).
Keep in mind that the 21 million will only be reached around the year 2140. Indeed, the miners only issued 19 million BTC at present. Then, it is estimated that nearly 4 million BTC are lost forever. They are stored on wallets whose owners have lost the keys. It would therefore be necessary that more than 800 million new addresses are created, for an average portfolio of 0.015 BTC (approximately $315). Do you already have yours?
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From anti-inflation hedging to pure gambling, what approach?
Despite the understandable desire of the majority of buyers, Bitcoin is far from being an investment that protects its buyer. We have seen this many times before, the covid crash being a recent example. The price of bitcoin is still closely linked to that of the traditional market.
For Steven LubkaManaging Director of Private Clients at Swan bitcoin, it is the exact opposite. Bitcoin should be considered as a hedge against inflationdespite some declines.
Easy to say for someone who could have bought it a few months ago for less than 6 or 7000 dollars. But less easy to accept for the one who would have invested at the top, namely nearly 70,000 dollars. With a price of around 20,000 today, i.e. nearly 70% losseven with 10% inflation, he would have lost less by keeping his dollars in his bank account.
The positive point to keep in mind is that the two actors agree on one thing. Whether or not it is already a safe haven, you have to own bitcoin. Today’s buyers are always early adopter and whether it takes a year, five years or ten years, investing in Bitcoin will be a safe haven like gold today.
If you have friends (lots of friends), you can therefore have fun giving them your sponsorship. They will be able to buy bitcoin. With 800 million addresses to create, you have enough to live on royalties for a few years!
Take advantage of the opportunities to buy low-cost cryptos that the market offers us! Register without delay on the FTX reference crypto exchange platform. In addition, you benefit from a lifetime reduction on your trading fees (commercial link, see conditions on official website).