This makes Bitcoin a relatively attractive currency. There is a certain limit to the number of bitcoins on the planet, and investors believe that once the supply runs out, the value of the digital currency can only increase.
Anthony Scaramucci, founder of Skybridge Capital, has a large stake in Bitcoin, but says people need attention. He told CNN Business earlier this month that it could be a solid addition to the average investor’s portfolio – but you have to be bold for that.
“This thing tends to collapse,” he said. “This is because of the correction, and these corrections can be violent.”
Scaramucci said bitcoin could suddenly drop 20% to 50%.
“You have to be very careful,” he added.
“Bitcoin’s best days are ahead of it, but it’s going to be fickle and I think people need to prepare for it,” Scaramucci told CNN Business.