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Senators and regulators explain why the $60 billion collapse of a major cryptocurrency is not the industry's Bear Stearns moment
Anthony Scaramucci, who served as Trump's White House communications director for just 11 days, is a staunch supporter of cryptocurrency.
Isn't it fun to think of Anthony Scaramucci as a big, cartoonish figure?
The Mooch was Donald Trump's communications director for just 11 days in 2017, but he had a lot of crazy things happen while he was there, including an on-the-record interview where he slammed his coworkers, which led to his firing.
The Australian Financial Review Cryptocurrency Summit Scaramucci spoke at on Wednesday was a lot of fun, and it lived up to the hype.
The Mooch came in from his New York office, and we saw right away how unique he is. There were huge paintings of Muhammad Ali and Superman in the background, as well as a bunch of guitars and other memorabilia, and the black puffer vest.
There were some classic jokes about US politics that Scaramucci didn't let us down with, either. Afterward, he made fun of his "11-day PhD in how Washington works." He called the Republicans a bunch of rabble
They have a lot of good things going for them: the Democrats. They are also crazy.
For his old boss, Scaramucci was very honest about his chances of regaining the presidency in 2024. He said that because of Donald Trump's declining popularity, it is very unlikely that he will even try to run for the presidency.
“Donald Trump does not want to lose the presidency twice,” Scaramucci said.
That's not to say Scaramucci doesn't still have the ability to make people laugh. It was his insights into the world of crypto that reminded the audience what he really is: a very smart person.
The Long Island native went to Harvard Law School with Barack Obama and then started his own investment firm in 1996, which he sold five years later. He joined Goldman Sachs after that.
In 2005, he started Skybridge Capital, a pioneering alternative investment firm that he still runs. Challenger, an ASX-listed company, owned a stake in the company for a few years until Skybridge bought it back in 2017, when it was sold to another company.
Advising big pension funds, running a hedge fund, and investing in digital assets like bitcoin and ether are three of the three main things the company does.
As a result, Skybridge has also come up with an ETF that gives investors the closest thing to investing in bitcoin, because the US government hasn't yet approved a cash bitcoin ETF. This ETF is called a "Bitcoin ETF."
The Mooch is happy to say that he was late to the party. He bought his first bitcoin in October 2020. But he gave one of the most clear-eyed explanations of why he jumped in, so that's why.
Scaramucci sees cryptocurrency investing as a way to protect against the spread of digital coins in the future.
"You want to get in here early," he said. You're short crypto if you're not long it.
When he thinks about crypto, he sees it as "a wonderful delayering asset for the economy." It can help cut out middlemen who take a cut of your ticket all over the economy.
He bought bitcoin 18 months ago, and there were about 80 million digital wallets with bitcoin then. There are now 247 million, and the Mooch thinks there will be 1 billion by 2024. "Ladies and gentlemen, we've reached the speed at which we can escape," he said.
Every restaurant in the world could accept bitcoin payments from a customer's smart wallet in five years, cutting out the credit card companies. This is not a far-fetched idea at all.
His appearance at the Summit was a great way to show how quickly internet technology has changed.
The speed at which technology has changed has made it possible for Scaramucci to speak at a conference for almost no money. He would have had to go through a phone operator to talk to someone in Australia not too long ago.
The world of crypto is still very new, so think about where we will be in five years.
Scaramucci also has a big selling point because he's so rare. Almost everyone knows about the fact that bitcoin has a limit of 21 million coins. There are less than 2 million coins left to be mined.
At least 2 million coins have been lost in some way, Scaramucci says. This means the pool is now 19 million coins.
As the use of bitcoin grows, demand will meet a limited supply; a "halving" event is set for 2024, when the number of bitcoins that can be made will fall from 900 to 450.
His prediction that bitcoin would rise to $US100,000 was off. The Mooch says that the US regulator's refusal to allow a cash bitcoin ETF, the pandemic, and now the war in Ukraine have set the industry back, which is bad for everyone.
But his belief in the "elasticity of this situation" and the "likelihood that these prices will go up to half a million dollars" hasn't changed.
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