Can Bitcoin Goes To $200k: Chamath Palihapitiya

• Chamath Palihapitiya is one of those investors who becoming increasingly well-known as time goes on. He has delivered high investing returns over the past decade. He invested in Amazon, Slack, and Tesla & he was also an early member of Facebook. Another investment that Palihapitiya is betting on is Bitcoin.
• He was asked recently where he thought the price of Bitcoin was going & this is what he said.

“Where is it going. It’s probably to $100k then $150k then $200k. in what period? I don’t know, 5 years, 10 years, but it’s going there”.

Chamath Palihapitiya

• The main thing that Chamath uses Bitcoin for is an uncorrelated hedge against the economy & the current system that we are in. We all living in a somewhat unstable environment right now. Presidents have been banned from social media, there are still some wars going on, we are in a hyperinflation situation, prices of goods are all very high, and the government is constantly printing money. We all have to agree that we are in some shaky environment.
• The one asset class that can benefit from times like these & will continue to do so if they get worse is Bitcoin. Because Bitcoin doesn’t rely on any banks or governments. Everything is done with blockchain. If things get worse with the markets the economy or the political system we could see Bitcoin doing even better.
• Bitcoin is a much better version of currency than any fiat money that we’re currently using.

• So, the reality is that cryptocurrency is a better version of money. But the question is will big corporations adopt it? Chamath thinks that it’s inevitable at some point in time that they will.

“Eventually these retailers will want to do it because of the ability to eliminate credit card fees & the ability of behalf of the consumer to prevent fraud. These are hugely positive aspects of adopting some kind of cryptocurrency, so it’ll tip”.

Chamath Palihapitiya

• Even though Chamath is very positive about Bitcoin, Warren Buffett thinks Bitcoin is totally a useless asset class to own. Many times he has mentioned Bitcoin as a non-productive asset like gold. As he points out owning or investing in some asset class will not benefit you in the long-term. Charlie Munger, the right hand of Warren Buffett also agreed with Warrant’s idea & both of them think that Bitcoin is a threat to national currencies.

“If you offered me all the Bitcoin in the world for $25, I wouldn’t take it. Because what would I do with it? I’ll have to sell it back to you one way or another. It isn’t going to do anything”

Warren Buffett