Key Takeaways
- • David Rubenstein, co-founder and co-chairman of Carlyle Group, stated on CNBC that cryptocurrencies are "here to stay" and will remain part of the financial landscape for years to come, rejecting concerns that the asset class is a temporary fad.
- • Rubenstein has personally invested in companies that facilitate crypto trading (though not directly in digital tokens), citing his conviction in cryptocurrency's permanence and drawing a parallel to gold's enduring role in markets.
- • Bitcoin experienced extreme volatility on May 19, 2021, plunging over 30% to approximately $30,000 before recovering to above $41,000 on May 20, yet Rubenstein characterized such swings as normal for nascent asset classes and not indicative of systemic failure.
- • Anthony Scaramucci, founder of SkyBridge Capital, echoed Rubenstein's perspective, noting that bitcoin's Wednesday collapse was consistent with historical volatility patterns over the asset's 12-year history and that the bull market remains intact.
- • The crypto market commentary follows stricter IRS compliance requirements announced by the Treasury Department on May 20, which contributed to intraday trading pressure across digital assets.
Summary
David Rubenstein, the billionaire private equity titan and co-founder of Carlyle Group, expressed bullish conviction on cryptocurrency's long-term viability during a CNBC "Squawk Box" appearance on May 20, 2021. Rubenstein stated unequivocally that cryptocurrencies are "here to stay," dismissing characterizations of the nascent asset class as a speculative bubble destined to collapse. His remarks came amid significant market turbulence, with bitcoin experiencing a severe drawdown the previous day.
Rubenstein disclosed that he has made personal investments in companies facilitating cryptocurrency trading infrastructure, though he clarified he has not invested directly in digital tokens themselves. He justified this allocation thesis by drawing an explicit parallel to gold's historical role as a store of value and medium of exchange, noting that some investors view bitcoin as a modern substitute for the precious metal. "Cryptocurrency is not going away, just like gold is not going away," Rubenstein said, anchoring his conviction in the permanence of decentralized digital assets.
His bullish commentary provided context for the preceding day's market turbulence. On May 19, bitcoin declined over 30% intraday, touching approximately $30,000 before recovering to above $41,000 by May 20's session close. Rather than interpreting such volatility as evidence of structural weakness, Rubenstein characterized the price swings as typical of emerging asset classes. "It has its ups and downs, and yesterday was not a good day. But that's true of anything that is relatively new," he stated, emphasizing that volatility alone does not portend permanent value destruction.
Anthony Scaramucci, founder of hedge fund SkyBridge Capital, reinforced Rubenstein's assessment during the same broadcast. Scaramucci contextualized bitcoin's 30% decline within its 12-year price history, noting that such slides were consistent with previous cycles and did not invalidate the ongoing bull market thesis. The comments reflected growing institutional acceptance of cryptocurrency despite regulatory headwinds: on May 20, the Treasury Department announced stricter IRS compliance requirements for cryptocurrency transactions, which temporarily pressured digital asset prices during the trading session.
Rubenstein disclosed that he has made personal investments in companies facilitating cryptocurrency trading infrastructure, though he clarified he has not invested directly in digital tokens themselves. He justified this allocation thesis by drawing an explicit parallel to gold's historical role as a store of value and medium of exchange, noting that some investors view bitcoin as a modern substitute for the precious metal. "Cryptocurrency is not going away, just like gold is not going away," Rubenstein said, anchoring his conviction in the permanence of decentralized digital assets.
His bullish commentary provided context for the preceding day's market turbulence. On May 19, bitcoin declined over 30% intraday, touching approximately $30,000 before recovering to above $41,000 by May 20's session close. Rather than interpreting such volatility as evidence of structural weakness, Rubenstein characterized the price swings as typical of emerging asset classes. "It has its ups and downs, and yesterday was not a good day. But that's true of anything that is relatively new," he stated, emphasizing that volatility alone does not portend permanent value destruction.
Anthony Scaramucci, founder of hedge fund SkyBridge Capital, reinforced Rubenstein's assessment during the same broadcast. Scaramucci contextualized bitcoin's 30% decline within its 12-year price history, noting that such slides were consistent with previous cycles and did not invalidate the ongoing bull market thesis. The comments reflected growing institutional acceptance of cryptocurrency despite regulatory headwinds: on May 20, the Treasury Department announced stricter IRS compliance requirements for cryptocurrency transactions, which temporarily pressured digital asset prices during the trading session.
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