‘Headless’ Bitcoin has ‘effectively replaced Gold’ and it will only…
An increasing number of institutional investors are shrugging off their affinity to gold, making way for further accumulation of digital assets, especially Bitcoin. Most recently, billionaire investor Chamath Palihapitiya also echoed similar sentiments while expressing his faith in Bitcoin. In fact, he’s confident BTC will hit newer highs soon.
Speaking to CNBC about the dreaded inflation and his preferred hedging assets, the investor claimed that gold has met its competitor in Bitcoin. According to the exec, the virtual currency has ‘effectively replaced’ it and will continue to do so in the long term.
"I can pretty confidently say that #bitcoin has effectively replaced gold," says @Chamath."And it will continue to do so… that market cap is just going to grow." #DeliveringAlpha pic.twitter.com/KFL4TywfD3— Delivering Alpha (@DeliveringAlpha) September 29, 2021
Palihapitiya also shared his anti-inflation investment formula, which contains hypergrowth, cash-generating businesses, and lastly, non-correlated assets like Bitcoin.
Along with the king coin, he also mentioned Solana as a potential investment of choice. This was especially interesting since the cryptocurrency has gained by over 27,700% over the course of the year.
The venture capitalist believes both these virtual assets are a “great counterintuitive hedge” against the other two investments. In the event that they break down due to larger market circumstances, assets like Bitcoin can provide an added layer of protection.
‘Bitcoin can touch $200,000 price’
Earlier this year, Palihapitiya had told CNBC that he could see Bitcoin going up to $200,000 in the next 10 years. With the crypto trading at $43,000 at the time of writing, it made sense that he didn’t make a prediction this time. He did, however, paint a bullish outlook for it, claiming,
“I don’t know where it goes. I’m a huge intellectual bull. It could get very big. We all need to pay attention to it.”
Alas, despite the heightened optimism, the investor does have doubts about how the market will move in the future.
“I do worry that we’ve pumped an enormous amount of money in the ecosystem and it has to show itself. When we start to balkanize these supply chains and regionalize, because of China, prices are going to go up.”
The threat of a regulatory crackdown has been a constant roadblock to the growth of the crypto-market over the past few months. While China’s bans have repeatedly caused a flourishing market to correct, the SEC is not far behind in expressing ridicule.
Nevertheless, Palihapitiya argued that because Bitcoin is just an iteration of the Internet, it would be very difficult to legislate it.
“I think it’s very hard to kill. It’s completely headless. It’s entirely peer to peer. I think that’s both scary and exhilarating.”
It’s worth noting, however, that the aforementioned comments were in sharp contrast to those of billionaire investor Ray Dalio. According to the exec, Bitcoin’s success will be the reason behind its eventual demise thanks to an overbearing SEC.Source