- The activity in GameStop is more proof of concept that Bitcoin is going to work, Anthony Scaramucci
- The shares of GameStop are up by more than 1,700 percent in 2021
- SkyBridge Capital has exposure to Bitcoin of about $385 million
Anthony Scaramucci, co-founder of the New York-based hedge fund manager, Skybridge Capital has explained that the recent victory recorded by GameStop, a crypto retail trader, is a positive for Bitcoin.
What is the GameStop Saga?
In the 24 hours, the shares of GameStop has spiked more than 125 percent. GameStop’s shares are now up nearly 1,700 percent in 2021, the shocking climb was termed the GameStop saga.
The outrageous rally of GameStop is fueled by a short-squeeze buy. With the aid of social media, more individuals are throwing their funds behind GameStop, a leading retail destination for video games, consumer electronics, and gaming merchandise.
The price rally of GameStop has caught the attention of a lot of investors including Tesla’s CEO, Elon Musk and venture capitalist, Chamath Palihapitiya. The most recent investor to talk about the saga is Skybridge Capital’s co-founder Anthony Scaramucci.
GameStop Saga is ‘More Proof’ that Bitcoin Will Work
In an interview with Bloomberg, Scaramucci highlighted that the impact of small retail trading groups, most notably GameStop, showed the power of decentralized finance – the concept that forms the backbone of Bitcoin.
Scaramucci explained that we are currently in the age of micro investors – the main idea of decentralization. In the last couple of weeks, the shares of GameStop has exploded as micro investors rallied behind the retailing giants. He explains;
The activity in GameStop is more proof of concept that Bitcoin is going to work. How are you going to beat that decentralized crowd? That to me is more affirmation about decentralized finance.
One major concern about the saga voiced by investors amid the GameStop saga is the possibility of a spike in the inflation rate in an age of unprecedented monetary and fiscal experimentation.
On the Flipside
- The general manager of the Bank for International Settlements (BIS), Agustin Carstens, has criticized Bitcoin for being too volatile
- According to Agustin Carstens, Bitcoin was inherently risky and “increasingly vulnerable” to a 51% attack
- In his speech, he noted that investors must be cognizant that bitcoin may well break down altogether
Skybridge and Bitcoin
Anthony Scaramucci’s Skybridge is one of the hedge fund managers that have backed Bitcoin. Skybridge joins the likes of Grayscale, Massmutual, MicroStrategy, Fidelity Investments, Ruffer Investment, and Guggenheim Partners LLC as institutional investors to throw their weight behind Bitcoin.
Just recently, Skybridge announced that it has “initiated a position, valued at approximately $310 million,” in the Skybridge Bitcoin Fund. Scaramucci explains that the Skybridge Bitcoin Fund currently holds $60 million while the company has exposure to about $385 million.“