Bitcoin won't hedge inflation until it hits 1B wallets: Scaramucci

Skybridge Capital CEO says Bitcoin needs a lot more proliferation before it can act as an inflation hedge.< /p> New

Anthony Scaramucci, CEO of Skybridge Capital, believes that while Bitcoin continues to be an attractive asset, it has not achieved the "portfolio bandwidth" needed to qualify as an inflation hedge.

Speaking on CNBC's Squawk Box on August 22, the global investment management CEO said Bitcoin was still too "an early adoption technical asset" that would need to be held in around a billion wallets before to start acting as a hedge against inflation.

"Until you enter the billion plus billion zone, I don't think you're going to view Bitcoin as an inflation [hedge] as it's still a technical asset to be adopted early."< /p>

Although the exact number of Bitcoin wallets worldwide is unknown, estimates place the number at around 200 million.

In its early years, some touted Bitcoin as a potential hedge against inflation, given its fixed supply of 21 million coins. However, this narrative has changed over time as Bitcoin has been observed to be increasingly correlated with the stock market, according to a new IMF report.

"#Bitcoin is still not a mature enough asset to be considered as a potential inflation hedge," says @scaramucci on $BTC. "You just don't have the wallet bandwidth with bitcoin. This is still a technical asset to adopt early." pic.twitter.com/YTsy6W3HGU

— Squawk Box (@SquawkCNBC) August 22, 2022