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REUTERS / Joshua Roberts
SkyBridge Capital co-founder Anthony Scaramucci argues that the victory of retail traders over short sellers in the GameStop battle is a boon for Bitcoin.
Scaramucci told Bloomberg in an interview that the impact of small retail groups shows the power of decentralized finance – the very concept behind Bitcoin.
Money management, once seen as limited to a concentrated group of highly paid advisers, is being democratized through smartphones and low-cost online trading, Scaramucci said.
“The activity in GameStop is further proof of the concept that Bitcoin is going to work,” he said. “How are you going to beat this decentralized crowd? To me, that’s more of a statement about decentralized finance.”
Reddit traders feasted on GameStop’s rapid price hike after their online posts urged others to join the trade, which pushed the video game retailer’s stock value up by about 600% in only 10 trading days. That caused short sellers to lose a record $ 5 billion in wagering against the stock this year, according to data from S3 Partners.
Barron’s reported that a US securities regulator suggested there was something “consistently wrong” with the trading options surrounding GameStop stock.
“This is the age of the micro-investor and you better take it seriously – otherwise you will be taken to the cleaners,” said Scaramucci.
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Scaramucci’s SkyBridge has Bitcoin exposure of around $ 385 million, according to Bloomberg. The company’s Bitcoin-focused fund, SkyBridge Bitcoin Fund, now has around $ 60 million, he said.
Bitcoin was the best performing asset in the world last year, rallying 300%. Returns on the digital token have surpassed gold by more than 10 times.
Growing concerns about inflation in an era of unprecedented monetary and fiscal experimentation along with a significant reduction in the supply of new bitcoin have contributed to its impressive rally.
The price of a single bitcoin is about $ 10,000 lower than its record high above $ 41,000 at the start of the month. It was trading at $ 31,031 on Wednesday at 9:20 a.m. GMT or 4:20 a.m. ET, down about 4% on the day on the Coinbase exchange.
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