Former Facebook executive Palihapitiya thinks that the time for an uncorrelated asset like Bitcoin has come. It is public knowledge that Bitcoin reached USD 41,000, exceeding the market value of Facebook and Tesla.
In recent days, billionaire CEO of Social Capital Chamath Palihapitiya, who was one of the first senior executives of Facebook, predicted that Bitcoin will reach above USD 200,000. He mentioned the social circumstances that have driven the value of the pioneering cryptocurrency. Likewise, he explained how the decisions of political leaders have accelerated the process of adopting Bitcoin (BTC) as a store of value. Palihapitiya said on CNBC television that he does not know for sure when Bitcoin could reach USD 200,000. However, he estimates that it could get there within 5 to 10 years. The main cryptocurrency’s bullish rally has allowed it to appreciate by more than USD 10,000 per week. Under these circumstances, predictions about its price become increasingly relevant. The value of the cryptocurrency exceeded the market value of Facebook and Tesla, with a price above USD 41,600 and a market capitalization of USD 775 billion.
Political Factor and Bitcoin
Among the factors that have led to this adoption, Palihapitiya mentions the political crises that have occurred worldwide. He suggests that everything that is happening is because many leaders are not as trustworthy as they used to be. Concerning that, he says that it is necessary to have “some type of insurance” that allows “accessing uncorrelated coverage”. The executive referred to the moment when Bitcoin was born, possibly as a consequence of last decade’s political and economic crises. He believes that “the fabric of society is frayed” and that it is necessary to “have a precious” insurance until learning how to improve that situation.
Future of Bitcoin
Palihapitiya believes that Bitcoin “will eventually become something more important.” However, he considers that while this transition occurs, it is best to have insurance like Bitcoin, which is not related to traditional assets. He adds that no one should pay much attention to those coincidences, which can give a false impression of a close correlation. Last October, he said that the main cryptocurrency on the market “is the complete opposite of the way the financial infrastructure operates.”
Joking with CNBC interviewer Scott Wapner, Palihapitiya recalled that many people on CNBC used to laugh at him. Between 2012 and 2013, he repeatedly spoke about Bitcoin, when the cryptocurrency was trading at around USD 200. The investor bought his first bitcoin in 2012 and has been preaching the virtues of the pioneering cryptocurrency ever since. He says that he invested the equivalent of USD 1 million in Bitcoin when it was trading at USD 80. A year later, his BTC fortune had already amounted to USD 5 million. In 2017, he ventured to predict that the price of Bitcoin would reach USD 1 million before 2037. One of the last things that he recently said is that he would buy @GoldmanSachs and rename them, Chamathman Sachs when, Bitcoin reaches USD 100,000.
By Alexander Salazar