$1 million as Bitcoin price is possible. At least that’s what billionaire Chamath Palihapitiya thinks. Chamath is a former Facebook executive and currently the CEO of Venture Capital fund Social Capital. He mentioned this prediction in his talk with Anthony Pompliano who is a partner at Morgan Creek Digital Assets.
Palihapitiya became involved in Bitcoin investing when prices were about $80 per Bitcoin. He also allegedly once owned about 5% of Bitcoins (according to him).
Volatility Is the Main Issue
In the interview, he spoke about the status of Bitcoin as a reserve currency. He said that Bitcoin has the potential to be a reserve currency but its volatility stood in the way of mass adoption. Chamath also indicated that Bitcoin stood at an advantage as a vehicle for recovery.
Chamath also indicated that the turbulent nature of Bitcoin is one factor that works against it currently. He also expatiated on the correlation between the different kinds of markets:
“The only market that’s even more important than the debt markets are the currency markets. In that, there’s value because it allows more market participants to be active in that market so that they can use it as a critical pillar of how they run their business.”
He further alluded to why Bitcoin can’t fulfill this role. He said:
“You can’t effectively use it. It pushes it into this ghetto of day traders and speculators, and right now that’s where we are.”
The Bitcoin enthusiast also named conditions for Bitcoin prices to achieve stability. He said that the cryptocurrency will be viewed by many as a “flight to safety”. He explained:
“Over the next 10 years, where this trajectory is going to take shape — and it is a 10-year trajectory — you’ll have a lot of time to vector into it to protect yourself and to hedge yourself.”
$1 Million as Bitcoin Price Is possible under Some Conditions
The “aha” moment in the interview came when Chamath said:
“This is either zero or millions, because what it will do is it will create a quasi-gold standard. It’ll create an index, except instead of having to own gold, where gold is owned by central banks, it is an instrument that has value that’s determined by and between its participants, and it’s owned by everybody.”
Chamath and all the HODLers in the crypto space understand where Bitcoin is going. They have a sort of sixth sense about the nature of Bitcoin and other decentralized assets.
The trustless nature of the technologies behind cryptocurrencies is what gives them their value.
This is why investors are increasingly looking to Bitcoin as a hedge. While it may seem too late to buy Bitcoin at $80, it isn’t too late to join the crypto space. This is one driving force behind the cryptocurrency movement.
As at the time of filing this article, Bitcoin (BTC) price was at $7,323.22 (+2.71%). It seems that Bitcoin has entered a positive trend again.