SkyBridge Capital and known Bitcoin bull Anthony Scaramucci compares early Web 1.0 growth to Bitcoin network effects to buttress arguments for a $500,000 coin.
Despite the downtrend, Scaramucci said in an interview with Kitco News that BTC is currently closely tied to stocks listed on the Nasdaq.
Honestly, I don’t know the reason [for the sell-off]. It’s probably a myriad of factors, but I think the most interesting thing is that Bitcoin is now very tightly correlated with the higher growth, higher risk Nasdaq stocks.
The serial investor noted that Bitcoin investors will be rewarded the same way those who held onto Amazon stocks in the early days of online commerce did.
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Scaramucci underlined how investors needed to persevere and have enough discipline to see the bigger picture.
Bitcoin has had at least 50% decline 10 times since 2012. In the last year, we’ve had two 50% declines, obviously the most recent one but also one in May of 2021, so if you’re long Bitcoin, you have to subject yourself to this type of volatility move.
I’ll just point out that people in Web 1.0, if the same sort of situation happened for Amazon and if you were wise enough and disciplined enough to hold Amazon and let that company take full advantage of the network effects associated with it, you did very well, and I think that’s going to happen with Bitcoin.
I just remind people what Jeff Bezos said at the 20th anniversary of the public offering of Amazon. People said ‘Wow, the stock is so volatile. How were you able to hang in there?’ And he said ‘Well, I was more focused on users and revenue growth.’
For Bitcoin, since it’s a network, you have to be focused on the wallet growth and the interaction among the people in the network, and so I ultimately think Bitcoin will be worth a half a million dollars. It’ll probably take four to five years. The ride will be rocky but certainly worth it.”
He went on to say that the adoption curve in crypto has something to do with the anticipated acceleration in Bitcoin’s value in four to five years time.
There’s a lot of research on that, and people say how can you value Bitcoin? Fundamentally, you can value Bitcoin related to the network. Remember what Robert Metcalfe, the MIT professor once said: ‘One fax machine is probably worthless but 100 million of them is worth something.’ The network itself is worth something, and people mistake that when they do their fundamental analysis on Bitcoin.”
Bitcoin-Litecoin Complimentary Growth
Notably, Bitcoin’s adoption curve had a contagion effect on Litecoin, whose rate of address growth outpaced that of Bitcoin last year. Total Litecoin wallet address began trending parabolically in January 2021, as the project’s privacy-centric MWEB launch drew closer and made headlines.
Having withstood the test of time after running for a decade without flaws, Litecoin is often seen as the ‘silver to Bitcoin’s gold’ among investors. More recently, the project launched the ‘omni-layer‘, which supports NFT creation, smart contracts, DAOs, tokenised assets and crowdfunding capabilities.
The fundamental and historical precedent for Bitcoin-Litecoin network growth has given rise to speculation of a 4-digit Litecoin to compliment Bitcoin’s much anticipated 6-digit target.
Litecoin exchanges hands at $104 at the time of writing.
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