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Anthony Scaramucci compares bitcoin to early days of Facebook, Amazon and Google

Oct 25, 2021, 22:10 IST
Business Insider
Bitcoin network. Namthip Muanthongthae
  • Anthony Scaramucci said bitcoin reminds him of Facebook, Amazon and Google in their early days.
  • He said bitcoin and other cryptocurrencies have early adoptive technologies.
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Anthony Scaramucci, the founder and managing partner of SkyBridge Capital, said bitcoin's volatility is akin to big tech companies like Facebook, Google, and Amazon in their early days.

"They all started with a wave of oscillating volatility before they stabilized," Scaramucci said on CNBC's "Capital Connection" on Monday. "Of course they all yielded tremendous growth and great returns, which I think bitcoin will do."

Scaramucci, the former White House Communications director under former president Donald Trump, said he has over $1 billion in bitcoin currently. He called the cryptocurrency "digital gold" and said it would become a "gigantic asset class."

And bitcoin skeptics who have done research on the asset class have changed their minds to invest. He noted billionaire investors like Ray Dalio, Paul Tudor Jones, and Stanley Druckenmiller have taken stakes in bitcoin.

Even so, Scaramucci said, "it has to get more stable; it has to be a less volatile asset."

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Bitcoin hit $65,000 for the first time in April and then went on a downward spiral as China signaled a crackdown on cryptocurrencies. Despite the steep losses, the digital asset has regained ground and then some.

This month, Bitcoin has surged amid investor hype over US Securities and Exchange Commission approval for bitcoin futures exchange-traded funds. The first two bitcoin futures ETFs - one from ProShares and the other from Valkyrie - started trading last week, with another from VanEck set to launch this week.

On Monday, the cryptocurrency traded at $63,233.82, a drop from its new all-time high around $67,000 last week.

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