Bitcoin can prosper without becoming a major currency: SkyBridge's Scaramucci

[webfact]

FILE PHOTO: A representation of virtual currency Bitcoin is seen in front of a stock graph in this illustration taken March 15, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

 

By Anna Irrera and Tom Wilson

 

LONDON (Reuters) - Bitcoin doesn't need to become a widely-used form of payment to succeed and could prosper solely as a store of value, SkyBridge Capital founder Anthony Scaramucci said on Wednesday.

 

Designed as a way to pay, bitcoin is still little use for commerce - though in a major step Tesla Inc said on Wednesday customers can now pay for its electric vehicles in the cryptocurrency.

 

"For bitcoin to be successful ... it doesn't have to become the global currency," Scaramucci said in an interview at Reuters Digital Assets Week 2021.

 

"It could just be a store of value, and then you end up transferring your bitcoin into the various currencies that you want to transact in," said the former White House communications director.

 

Earlier this year, Scaramucci's SkyBridge launched a bitcoin fund with $310 million in assets under management.

 

Bitcoin powered to an all-time high of nearly $62,000 this month, the latest milestone in a meteoric rise fuelled by bigger U.S. investors.

 

Still, Scaramucci - who was ousted by former U.S. President Donald Trump in 2017 after little more than a week on the job - said he was no bitcoin maximalist, referring to die-hard advocates of the cryptocurrency.

 

"I don't believe that Jesus and Moses got together and had a baby, and the baby was bitcoin - that's not me. I see the risks of bitcoin, it is a volatile asset," he said.

 

"I'm a bitcoin investor. I was once a bitcoin sceptic."

 

DIGITAL DOLLAR?

The Trump administration had a "broad-based, negative" view on bitcoin due to its theoretical threat to the dollar's status as de facto global reserve currency, Scaramucci said.

 

"The notion that somebody could dislodge the dollar would be painful for regulators," and its use as an economic policy tool, he said.

 

To be sure, bitcoin has a long way to go before it replaces the dollar.

 

Still, central banks globally including the U.S. Federal Reserve are looking into issuing their own digital cash in part to counter the rise of public and privately-led cryptocurrencies.

 

"There will be a digital dollar - the Treasury's obviously working on that," Scaramucci said.

 

"The United States is not going to let the yuan digitise without it digitising the dollar."

 

U.S. monetary and fiscal stimulus programmes launched to counter the COVID-19 pandemic could also make bitcoin an attractive hedge against the erosion of the dollar's value, Scaramucci said.

 

This is also driving more investors into alternative assets, like "non-fungible tokens" (NFTs), technology that allows digital artwork or other content to be authenticated and sold on distributed ledgers, Scaramucci said.

 

His son, a videographer, created a piece of art and sold it as an NFT for the ethereum digital currency, he added.

 

"Old fogies like me don't know what (NFTs) are unless we talk to our 21-year-old kids," he said. "That stuff is upon us. Don't be an old fart, and get yourself educated and up to speed as quickly as possible."

 

(Reporting by Tom Wilson and Anna Irrera. Editing by Mark Potter)

 

-- © Copyright Reuters 2021-03-26

 

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[ukrules]

I view Bitcoin as more of a reserve asset than a currency for day to day use in local stores, think of a Bitcoin as a Kilo of gold at the moment, they have similar prices.

 

 

 

[wombat]

When Thai gold shops accept crypto in exchange for gold i will stop saying crypto is a long con pump and dump for the techno elite 

[Heng]

1 hour ago, wombat said:

When Thai gold shops accept crypto in exchange for gold i will stop saying crypto is a long con pump and dump for the techno elite 

 

Why are you holding out for Thai gold shops when there are Swiss, Dubai, and Singapore (have already bought at Bullionstar myself with BTC, although in hindsight, should have just kept it in BTC) gold shops that already do.   It's like saying I'm not going to believe this whole "smart" phone trend until grandpa gets one.   

Edited March 26, 2021 by Heng

[ukrules]

5 hours ago, wombat said:

When Thai gold shops accept crypto in exchange for gold i will stop saying crypto is a long con pump and dump for the techno elite 

Nobody cares what Thai gold shops do ????

 

[Caldera]

I don't like to agree with that slime ball Scaramucci, but I think he's got a valid point there.

[GrandPapillon]

On 3/25/2021 at 6:11 PM, ukrules said:

I view Bitcoin as more of a reserve asset than a currency for day to day use in local stores, think of a Bitcoin as a Kilo of gold at the moment, they have similar prices.

 

 

 

I would say a Kilo of heavy speculation, at least Gold has a real purpose and real intrinsic value

[Heng]

If you keep saying something over and over, it must be true!

[GrandPapillon]

1 hour ago, Heng said:

If you keep saying something over and over, it must be true!

right, like the crypto fans claiming it's all safe when in reality it's completely unsafe on all levels LOL ????

[Heng]

3 hours ago, GrandPapillon said:

right, like the crypto fans claiming it's all safe when in reality it's completely unsafe on all levels LOL ????

 

I don't see a preaching it's safe 'theme' here.   If anything, the handful of people here who are in the market seem to warn newbies of staying away or going in slow if anything...  LOL. ????

[GrandPapillon]

well maybe in this thread, but all over the Internet they claim it's safe, secure and trustworthy when in really it fails on all those things LOL ????

 

great speculation tool, however, I agree LOL ????