Chamath Palihapitiya is a well-known name in corporate circles including Wall Street. He is the billionaire CEO of Virgin Galactic and Social Capital. He has founded over six million dollar companies and sits on the boards of nine others including, Syapse and Remind 101. He also has vast experiences having served in high operation roles at Facebook, AOL and other Silicon Valley giants.
During a Podcast with Anthony Pompliano (Morgan Creek Digital Founder), he enumerated how Bitcoin has vast possibilities in the coming future. In this article, we are going to touch upon some of the important bits from the podcast.
On whether he has personally invested in Bitcoins-
When Pompliano asked him whether he has himself invested in the crypto, Chamath Palihapitiya said that he has just invested once, that too in 2013. However, the elaboration of the answer was what made news.
Palihapitiya stated that he bought Bitcoins for around eighty-hundred bucks in 2013. He also says that at one point he had nearly 5 million of all Bitcoins in circulation. According to him, he did not want to handle the coins personally and placed them with some kind of a trading platform. We believe that one of the major exchanges is holding his Bitcoins.
Experts are of the opinion that it was in late December 2017, when the Bitcoin boom happened, Palihapitiya’s Bitcoin fortune made him a billionaire. Palihapitiya himself says that he placed the coins with the company because he wanted to use it as a hedge in the future.
He also said that it is important to consider Bitcoin as an asset, which delivers you cash and other dividends when you need it. This is an entirely new perspective, which has not yet seen a lot of focus.
Chamath Palihapitiya on the future of Bitcoin and Cryptocurrencies
Palihapitiya states that Bitcoin is something, which has the potential to cross the $100,000 mark in the next few years. He also stated that he would not be surprised if Bitcoin hit the $1 Million mark in the next decade!
According to him, Bitcoin follows a ten-year old trajectory and holds a lot of potential in altering our financial systems. He was however categorical in pointing out Bitcoin’s volatility and stating that it still has a long way to go when it comes to matching the dollar’s stability.
Palihapitiya is of the opinion that it is futile for people to be investing in other cryptocurrencies like Ethereum. He unequivocally referred to all altcoins as second tier or third tier. According to Palihapitiya, if any crypto can really make a mark on the global financial systems, it is Bitcoin.
Why Palihapitiya feels that you should look at Bitcoin as an Insurance
Palihapitiya equated investing in Bitcoins as a kind of insurance. He says that just like in an insurance, a $1 investment in Bitcoins should help you generate $1000. This according to him is something, which is going to be possible moving forward.
On questions as to should normal people invest in Bitcoins, his answer was an emphatic yes. He pointed out that it makes great financial sense to invest just 1% of all your wealth in Bitcoins and forget about them.
Apart from the quirk factor, he points out that there is something empowering in investing in a future, which is not at all connected to the present day world. In other words, it is the future. Palihapitiya also had some harsh words for Warren Buffett (who has been very critical of Bitcoin and crypto) stating that Buffett is not connected to the reality of what is happening around us.
Palihapitiya’s podcast is important for many reasons. For starters, he joins the list of mainstream billionaires who are coming out in the open and defending Bitcoin. Secondly, his point of view of equating insurance with Bitcoin signals a strong element of using the crypto as a hedge. Lastly, his prophesy of Bitcoin hitting astronomical figures demonstrates the viewpoint of those people who are in positions of power on Wall Street.
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