Chamath Palihapitiya, a venture capital specialist and CEO of Social Capital, said Bitcoin is ushering in a revolution that exposes the weaknesses of the traditional financial system.
Chamath Palihapitiya: Bitcoin will rise in importance
In New interview for Bloomberg Markets and Finance Palihapitiya stated that BTC is gaining and will grow in importance.
– Can I say something about Bitcoin? I think Bitcoin is very important because it just shows the fragility of traditional financial infrastructure. If we look at, for example, the quantity and volume of the M2 money supply … The important question we should ask ourselves is: “Okay, if Bitcoin becomes the de facto global reserve currency that essentially displaces gold, what will replace the US dollar?” – He said.
He continued to wonder if if it wasn’t Bitcoin to replace the US dollar, maybe it would be some kind of stablecoin.
– What does it all mean? In less fancy language, there are companies all over the world that replace one US dollar with one digital token [będącym odpowiednikiem] US dollar and by simply creating this little abstraction they are able to completely build financial rails that did not exist before – added.
A revolution is underway
In his opinion “There is a revolution in trading, asset management, banking and payment processing.”
– In the United States, it is less noticeable because people don’t see it because the financial services infrastructure is so solid. But if you look at the developing world and any market where there is any form of currency manipulation or currency instability, then [Bitcoin] it’s the future – he said. – Bitcoin is a canary in the coal mine for a completely virtual, largely anonymous – and we can debate whether it’s good or not – financial reality. I believe that this is a very important trend that is worth understanding – added.
Palihapitiya also touched upon the target price that Bitcoin can reach. Unfortunately, he did not provide details.
– My friends and I are having a small group chat and we have just talked about plans for the summer in the hope that the pandemic will go away – he recalled. He noticed that one of his friends said that “when Bitcoin reaches the price of $ 100,000 “, will buy Goldman Sachs and change its name to Chamathman Sachs. – It’s all a joke. It’s a part of my personality that some people don’t understand He replied evasively.