Bitcoin is no riskier than bonds or precious metals

Anthony Scaramucci: Bitcoin is no riskier than bonds or precious metals

Bitcoin has become a viable option for long-term investors seeking refuge from inflation, said Anthony Scaramucci of SkyBridge Capital

Anthony Scaramucci, founder of SkyBridge Capital and former White House communications director, believes Bitcoin’s (BTC) value proposition has strengthened significantly now that Crypto Revolt governments have addressed many of the risks associated with the digital asset.

In an editorial published on CNN, Scaramucci and fellow SkyBridge executive Brett Messing argue that Bitcoin has become a viable option for long-term investors seeking refuge from inflation. The authors also say that holding Bitcoin is much less risky today than it was a few years ago, when regulation and infrastructure were still underdeveloped.

Bitcoin’s growth, according to the article’s authors, has “caused the government and institutions to step in and address many of the risks associated with digital currency,” referring to the Office of the Comptroller of Currency’s decision to allow banks to provide crypto services.

The two entrepreneurs continued:

“Increased regulation, improved infrastructure and access to financial institutions that hold investors’ money, such as Fidelity, have made investing in Bitcoin as safe as owning bonds and commodities such as gold, which are also used to balance portfolios.”

SkyBridge Capital made headlines last month after filing an application with the U.S. Securities and Exchange Commission to start a hedge fund on Bitcoin.

The SkyBridge Bitcoin Fund LP was launched a few weeks later, with Fidelity providing custodian services and Ernst & Young handling the audit

SkyBridge invested in Bitcoin between November and December, managing to accumulate a large exposure to the digital asset before the most explosive phase of growth began. At the time of the fund’s launch on 4 January, SkyBridge said its exposure to BTC was worth about $310m.

In 2020 BTC grew 300%, and certainly institutional capital was one of the main catalysts for the rally, culminating in a new ATH near $42,000 on 8 January 2021. So-called “smart money” investors are starting to see Bitcoin as a form of digital gold, but one that can appreciate much more than precious metals.