Chamath Palihapitiya is one of the most famous names in the cryptocurrency world today. Palihapitiya, who was the CEO of Social Capital and formerly managed Facebook, is one of those who made an early investment in Bitcoin.
He had invested in Bitcoin in 2013, when BTC was $ 80 each. According to Palihapitiya’s claim, he had so much BTC in one stage that 5% of the total amount of BTC in the circulation was in his wallet.
In addition to recognizing Palihapitiya as a Bitcoin rich, we also know him from his comments about Bitcoin. Palihapitiya, who generally makes positive statements about cryptocurrencies, also pays attention not to go far from realism. He made some similar comments.
Palihapitiya recently met with Anthony Pompliano and talked about both the developments in the global markets and the future of cryptocurrencies. Palihapitiya shared his personal opinions regarding the usage areas and future price of Bitcoin in his statements about the subject.
There is something Palihapitiya has been saying very clearly for a long time: Bitcoin will not replace the US Dollar. Just like Elon Musk, Palihapitiya thinks Bitcoin is too volatile and is no longer seen as a ‘currency’ today. Saying that Bitcoin is “too speculative” at the moment, Palihapitiya does not find “BTC replacing the dollar” style comments very realistic.
Palihapitiya, a student of Warren Buffett, thinks that the price of Bitcoin might be millions of dollars in the coming years. So how?
We are on the brink of abyss
Recently, giant names such as Goldman Sachs and Deutsche Bank have begun to say that a great economic recession awaits us. Palihapitiya also made some comments about the future of the world economy and said that we are “moving towards the brink of cliff”.
This is exactly why Palihapitiya thinks that the price of Bitcoin can exceed a million dollars. Because, in his opinion, the world economy will experience a huge inflation crisis at some point, and there will be two options for people: either to adapt to inflation or to adopt a system similar to the gold standard.
According to the estimates of Palihapitia, a very difficult process will be waiting for the world economy in the next 10 years. In the course of this process, if the inflation reaches intolerable levels, the people can start moving back to a standard similar to the gold standard.
It should be emphasized that Palihapitiya says “people”. Because, according to Palihapitiya, central banks or states will not welcome the idea of moving to the gold standard. According to Palihapitiya, the main reason for this will be the failure of states to reach consensus.
Palihapitiya thinks that at this point, people can start using a gold standard independent from the state and the central bank. This may be Bitcoin, also called digital gold.
According to Palihapitiya, such a scenario is really unlikely to happen. However, we can see that the price of BTC has risen to millions of dollars if Bitcoin is being used in a kind of digital gold standard. His views on the subject are as follows:
“The probability that the bitcoin price will be several million dollars is 1% so far, it is now 5-10%. The only way to deal with inflation will be to establish a scheme similar to the gold standard. But it is almost impossible for states or central banks to switch to such a system. Because they can reach a compromise neither about the vehicle to be used nor the exchange rate. At this point, people can decide to use Bitcoin. ”