Former top Facebook executive sees Bitcoin at US$200,000 in the future
Chamath Palihapitiya sees the market-leading cryptocurrency as a protective shield for society.
In recent days and weeks, Bitcoin (BTC) has been on an astronomical climb, already taking it above US$40,000. This market value is well justified, as the market-leading cryptocurrency is a Bitcoin Method hedge against global uncertainty, as billionaire and investment expert Chamath Palihapitiya explains in an interview with CNBC.
In doing so, Palihapitiya, who has held senior positions at Facebook, among others, believes it is possible that Bitcoin will climb to US$200,000 in the next five to ten years. „The reason is that every time something like the crisis happens in the world, we are reminded that our governments are not as trustworthy and reliable as they used to be,“ as the venture capitalist elaborates to this effect. To this he adds:
„So just in case we actually need some kind of hedge, then we have an independent hedge available in that [in Bitcoin].“
In the wake of the Corona crisis, governments around the world have taken various measures to cushion the economic impact of the pandemic. The US, in particular, has printed and distributed massive amounts of money.
Bitcoin, meanwhile, is a currency that is not under the control of rulers and knows no national borders
Bitcoin investors can hold their assets themselves and do not need centralised institutions like banks to do so. Moreover, Bitcoin is largely independent of other financial products and markets, as a study by Fidelity demonstrated in October 2020.
„It will eventually become something much bigger, with the data already showing us that it works,“ as Palihapitiya notes. He then adds:
„Our world is not working properly, and until we figure out how to make it better, we have a protective umbrella in Bitcoin that everyone is now claiming. That’s a great thing, I never thought it would be.“
Since the beginning of 2020, more and more investors have been moving under the protective umbrella called Bitcoin, with institutional investors in particular increasingly taking a liking to the cryptocurrency. However, critics remain, including prominent entrepreneur Kevin O’Leary, who cites regulation as an insurmountable obstacle to Bitcoin.
The US Options and Futures Trading Commission (CFTC) has already classified Bitcoin as a commodity, but this is unlikely to be the last word, as can be seen from the fact that the regulatory efforts of the authorities have recently become increasingly intense.