Anthony Scaramucci, president of SkyBridge Capital and ex communications director of the White House, claims that the value proposition of Bitcoin (BTC) has greatly improved now that policymakers have tackled much of the digital asset-related threats. 

Scaramucci and SkyBridge manager Brett Messing, in an paper released on CNN, claim that Bitcoin is now a promising option for long-term buyers finding relief from inflation. The writers also argue that carrying Bitcoin is much less dangerous nowadays than it was when laws and technology were only insufficient a few years earlier.

The rise of Bitcoin has prompted governments and institutions to move in and tackle many of the threats related to the virtual currency, the authors stated, responding to the Office of the Currency Comptroller’s action to allow banks to offer digital currency services. 

Why people invest in bitcoin: Psychology of cryptocurrency

They proceeded:

“[…] increased regulations, improved infrastructure and access to financial institutions — like Fidelity — that hold investors’ money have made bitcoin investments as safe as owning bonds and commodities like gold, which are also used to balance portfolios.”

When it lodged a request with the U.S., SkyBridge Capital gained international attention in the previous  month. Securities and Exchange Commission to establish a hedge fund for Bitcoin. Several weeks later, the SkyBridge Bitcoin Fund LP began, with Fidelity acting as custodian and Ernst & Young doing the monitoring. 

Between November and December, SkyBridge allegedly spent in Bitcoin, helping it to acquire a significant virtual currency position before its parabolic rise. SkyBridge estimated its BTC investment was valued about $310 million at the time the fund was introduced, on Jan. 4.

Institutional capital was a significant driver for the 300 percent surge in Bitcoin in 2020, ending on Jan. 8 with a new record peak above $42,000. Bitcoin is starting to be regarded by smart money investors as a type of digital gold, one with a theoretically far better prospect than rare metals.

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