A prediction was recently made about bitcoin by the founder of Skybridge Capital, who said that the pioneer cryptocurrency would be adopted as legal tender by a number of Latin American countries in the future, not just El Salvador. Recently, he doubled down on his prediction of Bitcoin reaching the $100,000 mark, but he also said that he does not believe the cryptocurrency can be used as a hedge against the rising inflation. Anthony Scaramuccibelieves that bitcoin is a technological asset that is meant for early adoption. The founder of the investment management company had given an interview last week atMarketwatchwhere he shared his thoughts.
He elaborated that countries other than El Salvador would also adopt bitcoin as legal tender. Last year in September, El Salvador made history after it decided to adopt the world’s first crypto as legal tender, along with the US dollar. NayibBukele, the President of the country, had predicted in the beginning of January that there will be two more countries who will follow in their footsteps this year and adopt Bitcoin as legal tender. Nigel Green, the chief executive of Devere Group, had also made a prediction in the same month.
According to him, he believes that there will be three countries that will announce the adoption of Bitcoin as legal tender in 2022. Last year in October, Alex Hoeptner, the chief executive of Bitmax, a crypto derivatives trading platform, had also made a prediction along the same lines. Only, he said that there would be five countries adopting Bitcoin as legal tender in 2022. Not only did Scaramucci double down on his $100K price prediction for bitcoin, the founder of Skybridge Capital also added that there was a possibility of the coin hitting a whopping $500,000 in the long run.
Furthermore, he added that by the end of 2025, there will be more than a billion wallets holding Bitcoin. He continued to predict that there would also be a surge in bitcoin users in the next decade, as this number would reach around 2.5 to 3 billion. He opined that once Bitcoin reaches that milestone and would have matured as an asset, then it would be the right time to have a conversation about the suitability of the crypto to be used as a hedge against inflation. In recent times, the founder has opined several times that he does not believe Bitcoin is a suitable hedge for inflation as yet.
These days, fund managers and investors have been talking about the possibility of bitcoin being used as an inflation hedge, given the current situation. Last year in March, Bank of America had stated that Bitcoin did not appear to be a compelling hedge against inflation. Goldman Sachs had also stated in June that bitcoin could be considered an alternative to copper, but not gold. Previously, the investment bank had said that bitcoin could be a retail inflation hedge. But, JPMorgan, yet another investment bank said that bitcoin was an inflation hedge and that people were dumping gold in favor of it.