Former White House Communications Director Anthony Scaramucci joined Yahoo Finance Live to break down his thoughts on Donald Trump and how he thinks history will remember him.
- Day two of the impeachment trial. Democrats making their case that former President Donald Trump was responsible for that deadly January 6 riot at the Capitol. You're looking at live pictures there on your screen. For more on this, we want to bring in Anthony Scaramucci, the SkyBridge Capital founder there, also former White House communications director. And of course, we have Yahoo Finance correspondent Julia La Roche joining the conversation.
Anthony, great to speak with you again. We have a lot to talk to you about. But first, let's just start with the impeachment. And let me just get your thoughts just on what we've heard over the past two days as the prosecution lays out its case against former President Trump.
ANTHONY SCARAMUCCI: It's a devastating case. It's very well thought out. The prosecution is doing a very good job of laying down the facts-- and again, not just the speech that the president made on the 6th of January, but all of the additional action items that he did after the election. And you know, not to throw out legal jargon, but it's important for people to understand that he is the but for causation in that tragedy. Without him, you don't have the tragedy.
Moreover, if he just abided to his oath to the Constitution and accepted the election-- the free and fair, nonfraudulent election-- of Joe Biden, now President Biden, you would not have had that tragedy, and you would not have had those five deaths. And so the president-- the former president-- is the proximate cause to that insurrection and to that violence. And additionally, he disavowed his oath to the Constitution by not accepting the free and fair election.
So they have all the elements there, all the base evidentiary elements to convict him. But unfortunately, because this is a political trial more than it is one based on objective, clear-eyed assessment of fact, he is-- still got a good chance of being acquitted, although his defense counsel is doing a horrific job.
And Senator McConnell left an opening this morning by suggesting that he has yet to decide how he's going to come down in terms of a verdict. So I think that's going to give a little bit of ceiling to some of these other Republicans, which would be good news. So it's not over yet.
JULIA LA ROCHE: Well, certainly, not over yet. But, you know, irrespective of the outcome here, Anthony, I would like to kind of hear your perspective, especially as someone who has worked not only on the campaign or in the White House but also kind of disavowed President Trump afterward.
What do you think his legacy will be? And what do you think that impact might be on the future of the Republican Party and also just kind of the country in general when we're talking about a lot of divide and how we can kind of bring folks back together?
ANTHONY SCARAMUCCI: Well, I think this will certainly be his legacy. This will even eclipse the 13 million jobs lost. It'll eclipse the malpractice of the pandemic. I'm not trying to make light of the 430,000 people that died, which are unbelievably tragic. But you can't blame every single death on President Trump. But you can blame this on him. He'll go down in history, once people have a moment to reflect on this, as a domestic terrorist, as an insurrectionist. And this will be a stain on him and his family forever.
As it relates to the Republican Party, they have an opportunity here to save themselves and to rebuild. But the likely acquittal that will come will cause a further destruction of that party. But what I will say about the country, which is what I like in the optimism, this is very bad for the Republican Party but quite good for the American people. Because laying out this case, there are 75% of the American people know where things stand. The president has 80% approval in the Republican Party. But remember, the Republican Party is only 30% of the registrants. So it's sort of 76-24 right now.
I would make the case to your viewers and listeners that Donald Trump is a great unifier. He just happens to be unifying all of us against him. And so that will be his legacy. It'll be one that will be on the infamous side of the ledger in American history, in American politics.
ADAM SHAPIRO: Hey, Anthony. It's Adam. It's great to see you. About two weeks ago, a reporter at another network was trying to get you with a gotcha question for working with the Trump administration. And you said, I made a mistake. And I'm curious, because it was so perfectly handled-- the way you did it. Why can't the Republicans, like a Josh Hawley or a Ted Cruz, say, look, this is a mistake? What holds them back from doing that?
ANTHONY SCARAMUCCI: Well, you know, some of what holds them back is that judgment. Obviously, the reporter that you were referencing coming hard at me-- I supported Donald Trump. So therefore, there's a binary thing, even though I took back my support and worked super hard to campaign against him. And you'll remember, Adam, that I started that project about two years ago. So, you know, for some people, it'll never be enough. And I understand that. But I think that's a resistance block.
The other resistance block is these people love power more than they like their own principles or our Constitution. And so they've been told by their political consultants to stay the course. This is the right course. This is a way to get the base transferred over to you.
The coward and traitor Josh Hawley and the coward and traitor Ted Cruz were told by the same political consultant, go up there and speak about this election and take seriously these fraudulent claims. And if you do that, you'll be in pole position to accept the baton of Trumpism. And, of course, that backfired on these two cowards because it was a principle as an amoral decision that they were making.
But that's where we are right now. These people, Adam, are more concerned about their positions of power and ruling than they are service and serving the public. And so the American people are on to them. And so the good news is, that party-- unless it reforms itself, it will split into two pieces. And it will become a minority party for at least a generation.
JULIA LA ROCHE: Well, Anthony, I am going to shift topics, and we're going to start talking about something else in your wheelhouse besides politics and, of course, as the managing partner of SkyBridge recently launching a Bitcoin fund. I want to hear how that went for you. Did it exceed your expectations? And what's sort of next for you as it relates to that?
ANTHONY SCARAMUCCI: Well, first of all, I'm very jealous of the palm trees in your background. So I just want to point that out. We're getting a little snow here.
JULIA LA ROCHE: I'm in Miami.
ANTHONY SCARAMUCCI: But listen. I mean, I did a tremendous amount of work on that, Julia. You've been to our SALT conferences. We've had a whole series of people that have come to our conferences that are Bitcoiners. I started out as a Bitcoin skeptic.
I want to confess to everybody that I'm not a Bitcoin evangelist, but I'm a Bitcoin investor. I've looked at the landscape, and I recognize that there is a spot now for Bitcoin. And I'm trying to encourage my colleagues, I'm trying to courage investors that have been with SkyBridge for many, many years to think about it that way.
And what I would say to money managers that are listening-- you're going to be benchmarked off of Bitcoin, meaning, in your mosaic of stocks and bonds and alternatives and gold, there will be a few percentage points related to digital currency. And since Bitcoin is the winner of that battle, it'll likely be Bitcoin. And so if you're not going to be an investor in Bitcoin, you're effectively short Bitcoin for the purposes of that evaluation.
And so we made a decision back in October. We put, as you know, several hundred million dollars into Bitcoin. Across our product line now, we have just under $500 million in Bitcoin. Our Bitcoin fund is heading towards $100 million. That's the SkyBridge Bitcoin Fund. And that's a Bitcoin-specific fund.
And so yes, we're very happy with the progress that we've made. But I want to remind everybody that this is a volatile asset. Some of what you're seeing this week is short squeeze, very akin to what happened to Tesla, where the nonbelievers in Tesla were squozen out of their shorts.
Same thing sort of happening here to Bitcoin. The coin is down probably 5% today. Expect volatility. Invest in Bitcoin at the size and scale of money that you don't need in the short term. And-- but I do think it has a very big future. And there's no reason why those coins couldn't trade into the "hundred plus million dollar" zone over the next 12 months.
JULIA LA ROCHE: Yeah, 100-plus-million dollars. So wait a second. Can we get rate on your price target?
ANTHONY SCARAMUCCI: I meant to say the $100,000 zone. I was mixing my metaphors.
JULIA LA ROCHE: Got it.
ANTHONY SCARAMUCCI: Yeah, I meant to say it's a 800-- it's $800 billion total market cap. I was thinking that when I spoke. But I see it going up over a trillion dollars. And it could easily trade $100,000 per coin.
- And Dean, and following up on that, of course, we had the news of Tesla on Monday-- the $1.5-billion bet on Bitcoin. Curious-- just, one, it sounds like you think it was a pretty smart move by Elon Musk, but then two, just the responsibility, I guess, for companies. Is it responsible for them to put Bitcoin on their balance sheets?
ANTHONY SCARAMUCCI: So I think the dilemma for those companies is fiat currency. They're watching the American government produce dollars at an alarming rate. We have 23.6 more dollars in production and in our money supply than we did six months ago. And if you really analyze the $1.9-trillion stimulus, it's very likely that we'll get another 17% more dollar production.
So you'll be sitting here-- in a 12-month period of time, you'll have 40% more dollars, or 40% more fiat currency. And so if you're looking at dollars in your bank account, you're like, OK, wait a minute. This may not be the store of value that I need from a corporate standing.
And Bitcoin, which is an expanding monetary network now fully, robustly scaling pursuant to Metcalfe's law-- you could be saying to yourself, OK, I'm losing value in dollars, but I'm not necessarily losing value in Bitcoin. Because of its scarcity, it's sort of tracking, and it's sort of standardizing in terms of a store of value.
So, you know, Ross Stevens was speaking to Michael Saylor early in the week. He's the CEO of NYDIG, a personal friend of our firm's. He basically said, listen, you know, your Hampton's real estate's going up in fiat currency, but Bitcoin is pacing it. And I think that's the dilemma for CFOs right now is they're watching this dollar production, this proliferation of dollars. They're saying to themselves, OK, maybe I need to have some of this.
It's very fungible. It trades in a liquid manner. It trades at a millisecond. And it is scaling. Over 100 million people are using Bitcoin today. Very likely that a billion people will be using it in five years. As everybody on this presentation knows, there's only 18 million coins-- 21 million in total, 3 million of which have been lost. And there's a few million coins left to be mined. So it's a fairly scarce asset. And I think this is the reason why you're seeing such an upward pull on price.
ADAM SHAPIRO: Even when you-- that you just got to the question I wanted to ask you. There's only a few coin left to actually be mined. So that would make the $100,000 call much more within what? The next year, two years? What do you think?
ANTHONY SCARAMUCCI: Well, I think so. You know, if you look at a stock-to-flow chart, and you look at demand that is building, and you see Elon Musk as a leader in this space-- remember, he was buying the coin six weeks ago. His average cost is probably 33,000-- it'll come as no surprise to you that the market intel out there is that there are many corporations that are thinking about adding Bitcoin to their balance sheets.
And there are institutional investors like BlackRock. BlackRock has already signaled last month that they gave approval to purchase Bitcoin and some of their larger mutual funds and to purchase Bitcoin futures. So, you know, you could be a Bitcoin realist. You don't have to be an evangelist to see that there is way more demand for Bitcoin than there is supply.
Remember, Warren Buffett doesn't like it. He even says that it's rat poison. But his very good friend Bill Miller, 20 years his junior at the age of 70, is saying, yeah, it may be rat poison, but the rat may actually be fiat currency.
So you have to-- you have to live, Adam, as we always do, in the world that we're given, not the world that we want to live in. You guys will remember that my performance was smashed last year-- last March-- as a result of the pandemic. The SkyBridge Series G fund is up 33% since April 1. And some of that, frankly, has been the move in Bitcoin that we took advantage of in the fourth quarter of last year.