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“Take a chill pill, stay long” – Anthony Scaramucci says bitcoin’s recent plunge won’t last

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“Take a chill pill, stay long” – Anthony Scaramucci says bitcoin’s recent plunge won’t last

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Buyers should calm down on cryptocurrency issues and make long-term investments instead, SkyBridge Capital’s Anthony Scaramucci told CNBC on Tuesday.

Some people think bitcoin is “rat poison,” as billionaire investor Warren Buffett once described it; others think it’s the worst thing that’s ever happened to civilization, Scaramucci said in a “Squawk Box” interview. “Everyone is a long-term investor until you have short-term losses and then you start to panic.”

“Take a chill pill, stay in bitcoin, other cryptocurrencies like Algorand and Ethereum for a long time, and I think you’ll be served very well in the long run in these investments,” the hedge fund founder added.

Bitcoin was back above $37,000 on Tuesday, a day after briefly falling below $33,000. Even with its rebound, the world’s largest digital coin has been trading well below its all-time high of around $69,000 reached in November.

Some crypto analysts fear the onset of a “crypto winter,” like the bear markets seen in 2017 and 2018 when bitcoin plunged around 80% from all-time highs at the time.

Scaramucci believes buyers need to see the big picture when it comes to bitcoin, rather than wondering what bitcoin’s current value is against the US dollar.

“We’re getting ahead of ourselves. If it’s 2025 and there’s a billion bitcoin wallets, call it a currency,” he said. “Dollar is still dollar. To me, this is an emerging technology that will eventually evolve into market value as more people join the network.”

Scaramucci cautioned against his enthusiasm by warning that bitcoin remains volatile due to poor adaptation, especially among large corporations – Tesla being one of the exceptions. Smaller organizations like hedge funds and small businesses are “snapping,” the long-term bitcoin advocate added.

“I would never mine an asset like bitcoin because of the volatility and uncertainty. … It would be like mining Amazon in 1998, 1999 and 2000,” Scaramucci said, referring to the early years since founding. Amazon in 1994.

Scaramucci advises his own clients to invest in cryptocurrency, but don’t get too excited. “I don’t want my clients to miss this. I tell them to size it appropriately – it’s a 1% to 3% allowance, 1% to 4% at cost.”

“You can let it run, of course,” he added. “But size it appropriately and then recognize that it will be part of our future.”

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“Take a chill pill, stay long” – Anthony Scaramucci says bitcoin’s recent plunge won’t last

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