Anthony Scaramucci served as White House Director of Communications from July 21-31, 2017 under President Donald Trump.

Scaramucci is the founder and managing partner of SkyBridge, a global alternative investment firm. He is also the founder and chairman of SALT, a global thought leadership forum and venture studio.

At the Bitcoin Conference in Nashville, Tennessee, Scaramucci discussed where traditional markets are headed for the remainder of 2024 and in 2025.

“We have spiraling interest rate costs at the federal level,” he said. “I guess I’m worried about that and I think the fed is going to cut rates because they’re worried about that as well, and it may trigger more growth stock market boom. It’ll certainly help Bitcoin.”

Scaramucci asked Dan Morehead, CEO of Pantera Capital and Chairman of Bitstamp, how will the federal government get out of the situation that the fiscal people in our government put them in, where you are staring down the barrel of a 36-37 trillion dollar deficit.

“It’s a huge problem,” Morehead answered at the Bitcoin Conference. “I don’t see how Congress gets out of it, but the fed’s job is supposed to be stable prices, which when I was a kid — me zero inflation — they bumped it up to 2 percent now, but it’s still way above that. It’s 50 percent higher than their goal, so I don’t think they can do anything about the fiscal problem. They have to keep rates high to do their congressionally mandated objective of keeping stable prices, so yeah it’s a fiscal problem.”

Scaramucci also asked Gary Cardone, managing partner at Card1Ventures, if the United States is in a debt crisis.

“I think we are in a debt crisis and it will never ever be repaid, ever” Cardone explained. “It doesn’t have to be repaid. There’s no way to get out of this. All asset values go up, I think next couple years.”

Asymmetric potential of Bitcoin

“It feels to me like it’s asymmetrical,” Cardone said. “I think everyone’s underestimated you. These guys have been here a lot longer than I have. I have not met one person that got close to the estimates of the quality, or the volume, that is rolling into these ETFs. The quality is staggering and the volume is spectacular, I think. When every expert in Bitcoin can miss that volume by 3-4X, I don’t think anyone really understands how asymmetrical this could possibly be.”

“I’ll put it very simplistically, it’s an asset class, so therefore it shouldn’t trade to the market capitalization of Nvidia or Apple, it’s got to trade to the market capitalization of gold, and I would argue that it’s better than gold, so it’ll probably trade to market capitalization above gold,” Scaramucci added. “Then, I’ll just say two quick things, the Jersey City, the mayor just said 2 percent exposure for the pension fund into Bitcoin, the state of Wisconsin is saying they’ve got 150 million that they announced last month or two months ago in Bitcoin, and we’ll be on this stage next year, someone will be on this stage, explaining that the T tactical asset allocation models for all institutional investors will have a one, two, possibly three percent exposure to Bitcoin. When you think about the magnitude of that, I don’t see how you don’t trade to the market capitalization of gold.”

“Yeah, I I totally agree with Anthony,” Morehead replied. “That’s the right way to look at it. We were at Goldman when they did the GSCI and now everybody thinks of commodities as an asset class doing emerging markets in the 90s, and now everybody thinks of emerging markets as an asset class in probably five years tops. Every institutional investor on Earth will have a blockchain team they’re going have an allocation. It’s going to be like 800 basis points or something like that, and the reason I’m still so bullish, and I think it’s still so asymmetric, nobody has that allocation right now. This is the first trade smart money missed, right, it’s all individuals like you and the audience that did this. Almost all institutions have either zero or less than 1 percent of their assets in blockchain, and so it’s not only the most asymmetric trade I’ve ever seen, I think it’s the most inevitable trade I’ve ever seen. Like it might take longer than we all think, right, it might have some ups and downs which it does, but basically everybody with the smartphone’s going to be using blockchain in 10 years, right, like it’s just that obvious, so that’s why I still think it is still very asymmetric because institutions have yet to really address it.”

Wall Street

Additionally, Scaramucci was asked if Bitcoin could potentially take the market cap of gold of 10 trillion or 11 trillion.

“It’s between 15 and 16 trillion right now at current prices,” he said. “Bitcoin is roughly one and a half trillion, so that’s a 10x. I don’t think it’s going to happen immediately, but could you see a 10x in Bitcoin over 10 years, I do believe that you’ll have at least one, possibly two more, having cycles. It will be embedded. Let me just say this one thing, and I think Dan and Gary would agree with me, because we’ve been on Wall Street a long time. We worked at Goldman together. Wall Street is this magnificent selling machine. They get a hold of a product. What do they do, they pick up the phone. They call their clients and they explain to their clients why they need to own the product. You know, Dan’s mentioning the Goldman Sachs Commodities Index, you were in fixed income, I was in equities, we were both working on that simultaneously to launch that product for Tim O’Neal back in 1990, so just imagine now thousands, tens of thousands of people all over Wall Street picking up the phone to call clients, institutions on a consultative basis, on a hard selling basis, on a brokerage basis. The asset class known as Bitcoin, you haven’t even seen that wave yet, and just watch what happens when the Morgan Stanley financial advisers get a hold of this thing, which is probably coming Labor Day weekend.”