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U.Today – There are many misconceptions about (BTC), particularly regarding its role in the broader financial ecosystem. Recently, the broader community was asked a question by CNBC's Squawk Box host Andrew Ross Sorkin. The question examines the reasons why Bitcoin fell over the weekend despite claims that it is an inflation hedge and a store of value.
When asked, Bitcoin bull Anthony Scaramucci responded that BTC is neither an inflation hedge nor a store of value – yet. He believes that global adoption of the coin is currently low and that not much will change until the coin has at least a billion users. These adoption numbers won't occur until around 2026, according to Scaramucci.
Bitcoin is often touted as the main competitor to gold, an asset that has served as a store of value and hedge against inflation for centuries. With Bitcoin's historic growth to a new all-time high (ATH) of over $73,000, the coin became further overvalued.
For Scaramucci, Bitcoin is still an early-stage technical asset that will trade like any other risk asset for the foreseeable future. While pointing out the growth momentum so far, he said that while Bitcoin has some hedging features, it is still struggling with severe volatility.
Bitcoin still early
Another big myth that Anthony Scramucci debunked is whether Bitcoin is still in its early stages or not. Since Bitcoin was introduced about 15 years ago, he said the argument that BTC is no longer new should be put aside.
He used the invention of the airplane as a case study, saying that although the Wright brothers had invented the airplane as early as 1903, critics felt that the innovation could not be commercialized until 1918. Given the plane's performance so far, Scaramucci is optimistic that Bitcoin will be worth much more in the long term.
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