When will Bitcoin become a powerful hedge against inflation?

In estimating that Bitcoin wallets would have to surpass one billion to turn the leading cryptocurrency into an inflation hedge, the CEO of Skybridge Capital, Anthony Scaramucci.

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Speaking on CNBC’s Squawk Box on August 22, the CEO of the global investment management firm argued that Bitcoin is still an early-adoption asset that will need to surpass one billion wallets to start acting as a hedge against inflation.

“Until we get into the billion-plus wallet zone, I don’t think we will see Bitcoin become a strong hedge against inflation, as it is still a technical asset that is in early adoption,” he said.

Currently it is estimated that Bitcoin wallets have reached around 200 million, although the exact number is difficult to estimate with certainty.

Bitcoin is being described as a potential hedge against inflation, given its stable supply of 21 million coins.

Optimistic about Bitcoin and Cryptos

Scaramucci said he is still optimistic about Bitcoin and the overall cryptocurrency market, pointing to recent moves by BlackRock to launch a new private Bitcoin Trust spot, with Coinbase as custodian, as he sees this development as a sign that there is strong institutional demand for the top cryptocurrency.

In closing, we note that recently Coinshare’s chief strategist, Meltem Demirors, expressed the view that Bitcoin prices will continue to remain stable throughout the third quarter as the price correlation between tech stocks and cryptocurrencies continues.

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