Bitcoin Evolution: From A Tech Asset To Digital Gold Standard – Anthony Scaramucci
Institutional and retail interest in Bitcoin, the largest digital currency, has risen to a remarkable level as the asset gains mainstream recognition in the financial sector. What was once the domain of early adopters and tech-savvy investors is now being embraced by corporate giants, who consider the crypto king the virtual version of Gold.
A Shift In Bitcoin Toward A Gold-Like Stability
Over the years, Bitcoin has witnessed significant growth in terms of price and on-chain activity, prompting many to compare the digital asset to Gold, the largest asset in the world. Anthony Scaramucci, the founder and Managing Partner of SkyBridge Capital, recently weighed in on the growing discussion, offering his insights on the evolution of BTC.
In an interview on Bloomberg, Anthony Scaramucci explained that Bitcoin is in an evolutionary phase as major publicly traded companies take significant steps to acquire the top cryptocurrency. According to the founder, BTC is experiencing a pivotal transition, moving from its initial status as a speculative tech asset to its growing recognition as digital gold.
The founder’s remark highlights the current state of Bitcoin in the financial landscape, where institutional investors, wealth managers, and sovereign funds are adopting the asset to address inflation, currency debasement, and geopolitical instability. While addressing how BTC could fully claim the digital gold status, Scaramucci stated that wallet expansion is the main factor that would solidify this notion.
Currently, the Bitcoin network boasts roughly 300 million wallet addresses, but the founder believes that the number could expand over time. However, with 1 billion wallet addresses, BTC’s volatile nature is expected to decrease sharply, drawing attention to notable assets like Microsoft and Google over the years.
Such a scenario for the crypto king is likely to cement its position as a reliable store of value and a hedge against inflation. As a result, BTC will attract more retailers, institutional investors, and long-term holders, which will persistently dampen volatility over time.
Is BTC An Asset Class Or An Investment?
In the interview, the founder also made a bold prediction on Bitcoin’s market cap, which is expected to rise to unprecedented levels as its user base and holders grow. Scaramucci believes that Bitcoin market cap might experience a massive pump, possibly matching that of Gold.
Big institutions and high-net-worth players may be steadily acquiring BTC, thereby bolstering its market value. However, Scaramucci contends that Bitcoin’s market cap growth will likely be determined by whether it is seen as an investment or an asset class.
If considered an investment, the founder has called a $1 trillion to $3 trillion value an ideal market cap for BTC. However, when classified as an asset class, its market cap could soar to that of Gold, which is currently valued at around $23 trillion.
Featured image from Pixabay, chart from Tradingview.com
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