Ex-Facebook Executive Chamath Palihapitiya sees Bitcoin as security against uncertainty

By: Dickson Arinze

Ex-Facebook Executive Chamath Palihapitiya sees Bitcoin as security against uncertainty

January 09, 2021 9:30 AM

Bitcoin the flagship cryptocurrency has risen dramatically over the past few weeks, recently flying past $41,000 setting a new all time highs.

 

Bitcoin (BTC) is an asset that is largely untied to a governmental authority, Bitcoin is a hedge against global uncertainty, according to venture capitalist and billionaire Chamath Palihapitiya.
Citing a possible five or 10-year time horizon, Billionaire Palihapitiya said he thinks that Bitcoin will likely reach $200,000 at some point.


“The reason is that every time you see all of this stuff happening, it just reminds you that wow our leaders are not as trustworthy and reliable as they used to be,” he told CNBC in an interview on Thursday. He added:

“So just in case, we do need to have some kind of, you know, insurance we can keep under our pillow that gives us some access to an uncorrelated hedge.”

Since the covid19 pandemic gripped the world in 2020, various governments around the world have taken different measures to combat its economic impact. 


With the U.S, in particular, showing that centralized currencies cant be trusted as they have printed large sums of money to combat the pandemic effect.

Bitcoin is borderless and run by the people without no governing body, Bitcoin (BTC) allows holders to control their funds by themselves.

 

“It’s going to eventually transition to something much more important, but for right now, you’re just getting all these data points that prove this thing,” Palihapitiya said of Bitcoin, adding:

“The fabric of society is frayed, and until we figure out how to make it better, it’s time to just have a little schmuck insurance on the side, and everybody’s running in. It’s just an incredible thing. I could never have imagined it.”

The Crypto industry has seen a substantial amount of adoption since the beginning of 2020, including large players gaining interest in Bitcoin. however,  some powerful figures remains skeptical on Bitcoin, citing regulation as a potential issue for the continues growth of crypto market.