Bitcoin is racing ahead at a meteoric pace breaking all the records with every passing day. Currently trading at above $40,000, Bitcoin has emerged as one of the most dependable asset classes, attracting large firms and high-value investors.
The former Facebook senior executive believes Bitcoin would reach $200,000 soon.
Chamath Palihapitiya Vouches for Bitcoin
Billionaire investor and Venture Capitalist, Chamath Palihapitiya believes Bitcoin is a hedge against uncertainty as global financial scenes get muddled amid coronavirus pandemic and economic slowdown.
Chamath Palihapitiya is a billionaire venture capitalist and founder of the Social Capital. He is one of the senior executives at Facebook. He appeared in an exclusive interview with CNBC this week and cited that Bitcoin will reach $200,000 at some point in time.
He explained that the global economic uncertainty shows that the leaders are not as “trustworthy and reliable as they used to be;” He further added that there is a need for insurance, which can provide a hedge.
Chamath has supported Bitcoin for long and is one of the early adopters of Bitcoin since 2o12; he even cited that Bitcoin may reach around $1 million by 2037. He said that the investors are beginning to understand the unreliability of the national leaders and thus want to safeguard their portfolios. Since Bitcoin is a borderless currency and is controlled by the people, no centralized authority has control over the money. Bitcoin is considered a safe hedge against economic disturbances as it is scarcely correlated to other markets and thus emerging as a new global asset class. Major firms like MicroStrategy have invested massively in Bitcoin in the last year and holds 70,470 Bitcoin worth $2.5 billion.
Palihapitiya noted that the “fabric of the society is frayed,” and until it is corrected, it is good to have some insurance on the side. He added. It’s just an incredible thing. I could never have imagined it.”. The billionaire venture capitalist feels that eventually, Bitcoin is going to transition to something significant, and the current data points are proof of this.
With the current Bitcoin rally, it is interesting to see how leading and influential faces in global finance are talking ardently about cryptocurrency and Bitcoin especially.
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