Anthony Scaramucci, founder of alternative asset manager SkyBridge, says Bitcoin should not be merely compared to gold.
Bitcoin is a “compounding machine for investors,” the former White House Director of Communications says. Instead, it’s more comparable to Berkshire Hathaway, he adds.
Scaramucci’s recent endorsement of Bitcoin (BTC) is not something new, as he has made several statements in support of the adoption of the flagship cryptocurrency over the years.
A foretaste of this was an interview in March 2021 where he referred to the changing environment where institutional investments in Bitcoin demonstrate a paradigm shift in the global financial ecosystem.
He compared it to gold and highlighted the benefits of BTC in terms of ease of storage, transportation, and ability to embrace change as technology for the transfer of goods and services.
Performance metrics shed light on Bitcoin’s trajectory as it relates to gold. Adjusted for inflation, gold has recorded 30% gains over the past decade, while Bitcoin, despite its volatile nature, has delivered a 3,700% increase since its creation, with annual returns of no less than 44%.
Bitcoin’s market dynamics
Bitcoin (BTC) is the leading blockchain-based digital currency. Different from traditional fiat currencies, it operates on a peer-to-peer network, eliminating the need for intermediaries.
Currently, exchanging hands for $62,600, Bitcoin has experienced a 21% surge over the past week. With a circulating supply of 20 million BTC, the cryptocurrency commands a market cap of over $1.2 trillion, per data from CoinGecko.
Bitcoin is facing resistance at the previous all-time high of $69,000, while $62,000 is acting as its closest support level.
The Relative Strength Index (RSI) on the weekly timeframe stands at 92.4, indicating a robust momentum.
Institutional Adoption
Experts at the Qatar Web Summit foresee Exchange-Traded Funds (ETFs) as a catalyst for Bitcoin’s adoption by professional investors.
Animoca Brands CEO Robert Yung, Dfinity Foundation’s Dominic Williams, and Delta Blockchain Fund founder Kavita Gupta argue that regulated investment vehicles pave the way for institutional involvement, marking an important “IPO moment” for Bitcoin.
Large financial institutions like Bank of America’s Merrill Lynch and Wells Fargo have entered the Bitcoin ETF market, introducing spot Bitcoin ETF products to their wealth clients.
This suggests a wider acceptance of cryptocurrency investment vehicles, with Morgan Stanley potentially following suit.
El Salvador’s Bitcoin investment
The president of El Salvador, Nayib Bukele, recently revealed how their Bitcoin investment has enjoyed a profit margin of more than 40%. Although that move was criticized early on, the transaction of purchasing 2,381
Bitcoins at the average price of $44,292 and being backed by the special citizenship offer in which Bitcoin donation is exchanged for expedited naturalization has proven to be a forward-thinking maneuver indeed.