Bitcoin ownership as safe as bonds and gold
Anthony Scaramucci: Bitcoin ownership as safe as bonds and gold
SkyBridge Capital’s Scaramucci has launched a new bitcoin fund. He says better infrastructure and regulation will make BTC investments as safe as bonds and gold.
Anthony Scaramucci, the chief executive of SkyBridge Capital and former White House communications director, believes the value proposition of Bitcoin (BTC) has increased significantly now Bitcoin System that governments have reduced many of the risks associated with the digital asset.
In an opinion piece on CNN, Scaramucci and his SkyBridge colleague Brett Messing explained that Bitcoin has become a practical option for long-term investors looking to protect themselves from inflation. The authors also claim that holding Bitcoin today is far less risky than it was a few years ago.
Back then, they say, regulations and infrastructure were still underdeveloped
Bitcoin’s growth has „prompted governments and institutions to step in and reduce many of the risks associated with the digital currency,“ the authors said. They were referring to the US monetary regulator, which allowed banks to offer cryptocurrency services.
They went on to say:
„[…] „Increased regulation, improved infrastructure and access to financial institutions, such as Fidelity, that hold investors‘ money have made bitcoin investments as safe as bonds and other commodities, such as gold, which are also used to diversify portfolios.“
SkyBridge Capital made a big splash last month when it filed an application with the US Securities and Exchange Commission (SEC) for approval of a bitcoin hedge fund. The SkyBridge Bitcoin Fund LP came to market a few weeks later. Fidelity acted as custodian and Ernst & Young provided auditing services.
SkyBridge invested in Bitcoin in November and December, building a large position with the digital asset even before its parabolic rise. When the fund was launched on 4 January, SkyBridge claimed that the Bitcoins it owned were worth about US$310 million.
Institutional capital was a key catalyst behind bitcoin’s 2020 rally, in which it surged 300 per cent to reach a new all-time high of US$42,000 on 8 January. So-called smart money investors are beginning to view Bitcoin as a form of digital gold. The increase in value can be much higher than with precious metals.