Bitcoin Has Replaced Gold, Says Chamath Palihapitiya

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  • Billionaire investor Chamath Palihapitiya argues that the leading cryptocurrency has effectively replaced gold.
  • Palihapitiya claims he has put hundreds of millions into Bitcoin.
  • He added it is pretty hard to kill Bitcoin at this point, if not impossible.

Billionaire investor Chamath Palihapitiya claims he has put hundreds of millions into Bitcoin and argues that the leading cryptocurrency has effectively replaced gold.

Chamath Palihapitiya, founder and CEO of Social Capital, a venture capital firm based in California, said the Bitcoin market cap will only continue to grow. Palihapitiya has been a bitcoin enthusiast since 2012 and has made several stratospheric Bitcoin price predictions.

Earlier this year, Palihapitiya predicted that Bitcoin price would hit the $200,000 mark by 2026. However, in his most recent interview, he said that it is pretty hard to forecast BTC prices. He stated:

It’s very hard for me sitting here to give you a price prediction, but I can pretty confidently say that Bitcoin, I think, has effectively replaced gold. it will continue to do so. And so that market cap is just going to grow.

Chamath Palihapitiya: Sole Bitcoin Investor

Palihapitiya reiterated his commitment to Bitcoin saying that he hasn’t really invested in anything other than Bitcoin. “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,” he said.

Palihapitiya emphasized that everyone needs to pay attention to Bitcoin, reasoning that the leading cryptocurrency would affect everyone. “But irrespective of what I do, I will say is we all need to pay attention to it, because I think the implications are enormous,” he said.

On the matter of regulations, Palihapitiya said it is pretty hard to stop Bitcoin. “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 said.

A couple of days ago, Tesla CEO Elon Musk also said it would be best to leave the crypto market unregulated. Notably, Musk said it is not possible for governments to stop crypto, adding that they can only slow its progress.

Fed Won’t Ban Bitcoin Like China

Recently, the regulatory scrutiny around cryptocurrencies has intensified in the US, prompting many prominent figures in the space to urge officials not to act hastily. Addressing these requests, Fed Chair Jerome Powell has announced that the US won’t ban Bitcoin as China has done.

After assuring that he has no intentions of scrutinizing all cryptocurrencies, Powell reiterated his harsh stance against stablecoins. “But stablecoins are like money market funds, they’re like bank deposits, but they’re to some extent outside of the regulatory perimeter. And it’s appropriate that they be regulated. Same activity, same regulation,” he said.

In mid-July, Treasury Secretary Janet Yellen also pointed out the importance of regulating stablecoins. Back then, she urged regulators to act quickly and establish a regulatory framework for stablecoins. A couple of days later, two financial experts suggested potential regulatory frameworks for stablecoins.