Investors should take a step back and look at the bigger picture rather than chasing the current Bitcoin price, SkyBridge Capital founder Anthony Scaramucci said on CNBC.
“Take a calming pill, stay long on Bitcoin, and on other cryptocurrencies such as Algorand and Ethereum. These investments will yield very good returns in the long term.”, the investor said.
According to Scaramucci, everyone in the market is a long-term investor until short-term losses arise that drive them mad.
The financier suggested that by 2025 there could be around a billion Bitcoin holders worldwide. The dollar will endure, and digital gold will finally establish itself as a store of value as the number of network users grows, he explained.
The founder of SkyBridge Capital said that Bitcoin is a technology ahead of its time. He compared it with Amazon’s shares, which survived the dot-com crash and numerous periods of extreme volatility. He reminded that $10,000 invested in them at the IPO eventually turned into $22 million.
Scaramucci attributed the current volatility to a muted level of adoption of the first cryptocurrency, particularly among large corporations. Steps in that direction are currently being taken only by hedge funds and small businesses.
“I would never use an asset like Bitcoin because of volatility and uncertainty. … It would be the same as running Amazon in 1998–2000.”, explained Scaramucci.
He declined to provide short-term price targets but expressed confidence in further user growth.
According to the financier, SkyBridge Capital currently advises investing between 1% and 4% of capital in Bitcoin, to “not miss the opportunity”.
Earlier in November 2021, Scaramucci proposed taking advantage of a correction to build up his positions.
Earlier, he forecast Bitcoin to reach $500 000.
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