Chamath Palihapitiya, chairman and CEO of Social Capital at Virgin Galactic, believes bitcoin has effectively replaced gold. After predicting that the cryptocurrency’s price would reach $200,000, the executive stated that bitcoin’s “market cap is only going to grow.”
‘I Can Pretty Confidently Say That Bitcoin Has Effectively Replaced Gold,’ says Palihapitiya.
In an interview last week at the Delivering Alpha Conference, Virgin Galactic Chairman Chamath Palihapitiya discussed bitcoin. In addition to being a billionaire executive, he is the founder and CEO of Social Capital.
Palihapitiya predicted earlier this year that the price of Bitcoin would reach $200K in about five years. In response to his price prediction, he stated on Wednesday:
It’s difficult for me to give you a price prediction from where I sit, but I believe bitcoin has effectively replaced gold. And it will do so in the future. As a result, the market capitalization will continue to rise.
At the time of writing, the price of bitcoin is $48,093, and its market capitalization is $905.8 billion.
Palihapitiya has been a long-time supporter of bitcoin. He stated last year, “In 2013, I bought a lot, and at one point, I think I had nearly 5% of all bitcoins.” My starting point is around $80 per coin. I’ve never purchased more.”
Last week, the billionaire investor was quoted as saying, “I haven’t put a lot of money outside of bitcoin obviously.” Tens of millions, hundreds of millions — that’s a lot of money right now. It has the potential to grow to enormous proportions. But, regardless of what I do, I believe we all need to pay attention to it because the implications are enormous.”
He explained that cryptocurrencies and decentralized finance (defi) are part of Web 3.0, whereas Google and Facebook dominated the first two internet versions. The next stage of the internet’s evolution, according to the Virgin Galactic chairman, is “rebuilding all of that stuff without an obvious leader.” “It’s completely decapitated. It is completely peer-to-peer. And I think that’s both terrifying and exciting.”
Palihapitiya was also quoted as saying that regulators could kill bitcoin or cryptocurrency. Some, such as Bridgewater Associates founder Ray Dalio, have warned that governments may outlaw cryptocurrency if it becomes too popular. Many others, however, disagreed, including Tesla CEO Elon Musk, who recently suggested that governments should “do nothing” to regulate or control cryptocurrency.
According to Palihapitiya:
[Bitcoin] is extremely difficult to kill, in my opinion. Technically, it is extremely difficult. It is the most profound iteration of the internet that we have seen simply because of the way it is designed.