Billionaire investor Chamath Palihapitiya recently stated in an interview that he has put hundreds of millions of dollars into bitcoin, the world’s leading digital currency by market cap. He also stated that he doesn’t think governments will be able to impose a “blanket ban” on cryptocurrencies, clearly a reaction to China’s latest maneuvers.
Chamath Palihapitiya On Where BTC Will Be in the Future
Not long ago, Palihapitiya was asked to comment on verbiage delivered by Gary Gensler – the head of the Securities and Exchange Commission (SEC) – and investor and bitcoin bull Ray Dalio. Gensler has often stated that the crypto community is “rife with fraud,” while Dalio has mentioned that he believes governments around the world will try to kill bitcoin off if it becomes too successful.
Palihapitiya stated during his interview:
I think it’s very hard to kill, so technically, it’s very difficult. Just the way that it’s architected. It is the most profound iteration of the internet that we’ve seen.
He states that the internet bitcoin has grown so accustomed to has ultimately come about in three phases. The first consisted of Google and Facebook, which have since worked to develop it in its current form. The second was the world of decentralized finance (defi) that has since taken precedence over the world of standard or mainstream assets.
The third is presently coming about, though he thinks this is difficult considering the two very large tech companies previously mentioned still own and control much of the internet. He says:
It’s completely headless. It’s entirely peer-to-peer, and I think that that’s both scary and exhilarating.
In addition, the world of crypto is being stifled thanks to the incongruity that’s occurring within its borders. For example, Gensler is feeling the pressure to instill regulations that could potentially place limits on future activities within the industry. At the same time, he’s pushing the approval of bitcoin ETFs granted these products are based on futures products – something analysts and experts say are inferior.
Reserving Himself to Bitcoin?
Palihapitiya has been actively studying crypto over the past year and a half. He says that while he’s looked for ways to diversify his portfolio, his holdings consist primarily of BTC at the time of writing. He states:
I haven’t put a lot of money outside of bitcoin obviously. You know, tens of millions, hundreds of millions like small capital right now. It could get very big, but irrespective of what I do, what I will say is we all need to pay attention to it, because I think the implications are enormous… It’s very hard for me sitting here to give you a price prediction, but I can confidently say that bitcoin, I think, has effectively replaced gold and it will continue to do so, and so that market cap is just going to grow.