Chamath Palihapitiya, the chairman of Virgin Galactic, believes that the price of Bitcoin has the potential to hit a million dollars over the next decade.
Bitcoin Price to Rise Massively In a Decade
The chairman of Virgin Galactic and founder of investment firm Social Capital, Chamath Palihapitiya, recently gave a podcast interview alongside Morgan Creek Digital co-founder, Anthony Pompliano. During the interview, Palihapitiya discussed various things, such as his Bitcoin investment strategy and the prediction for the leading cryptocurrency in the world.
According to Palihapitiya, he believes the Bitcoin price could hit $1 million over the coming decade. When asked about how high he thinks BTC price could reach over the next 10 years, he stated that he has always considered Bitcoin to be a very binary investment. He stated that whether the price of this digital asset goes from 80 to 8,000 or from 3,000 to 13,000, it does not matter. In addition, Palihapitiya firmly believes that the price of Bitcoin will go up to the millions.
Palihapitiya pointed out that he thinks Bitcoin will create a digital gold standard for investors. He stated that BTC will create a quasi-gold standard and that it will also create an index. The difference, however, will be that instead of having to own gold where central banks own gold, it will be an instrument that is owned by everybody and that has a value and that this value will be determined by its participants.
Palihapitiya has been a long time cryptocurrency proponent. Last month, he discussed the issue of Bitcoin investment with CNBC, where he reiterated that his views regarding Bitcoin haven’t changed since his 2013 article for Bloomberg. Palihapitiya still believes everyone should own Bitcoin.
He stated that everybody should probably have 1% of their assets specifically in Bitcoin. He also went on to say that he strongly believes that Bitcoin is a fantastic hedge. Palihapitiya argued that Warren Buffet is wrong when he continuously attacks Bitcoin and claims that the cryptocurrency doesn’t have value.
According to Palihapitiya, Bitcoin investment shouldn’t be driven by an event, such as the crash of the stock market. Instead, he believes reasonable individuals should hold at least 1% of their assets in Bitcoin. The Virgin Galactic chairman, who previously worked at big tech firms including Facebook, AOL, WinAmp, and Mayfield Fund, added that Bitcoin investment should be done quietly and should be allowed to accumulate over time.
Bitcoin Not Ready to Replace U.S. Dollar
Despite his positive outlook towards Bitcoin, Palihapitiya doesn’t believe Bitcoin is ready to replace the U.S. dollar and to become the dominant cryptocurrency in the world. According to Palihapitiya, Bitcoin is too speculative at the moment for it to be reliable.
The volatility of Bitcoin works against it in its bid to replace the U.S. dollar as the primary currency of the global economy. He noted that if a person is to make a case for Bitcoin to replace fiat currency, then they have to look at the volatility of the USD. At the moment, the U.S dollar can’t be replaced with an asset that is nine sigmas more volatile. That simply wouldn’t work.
Personally, Palihapitiya hasn’t bought any more Bitcoins since he bought virtually 5% of all coins in circulation back in 2013. His cryptocurrency reserve is now used by a company to run its affairs, allowing Palihapitiya to have a stake in the company and collect dividends. He believes hedging your Bitcoin reserve is an excellent way to generate extra income in the long-run.
A lot has been discussed about the price volatility of Bitcoin and how it would hinder it in becoming the primary currency of transaction in the world. The currency of transaction is more stable, and at the moment, Bitcoin doesn’t fit that description.