Chamath Palihapitiya, an early Bitcoin adopter and billionaire recently spoke on Pomp Podcast regarding the future of the world’s premier cryptocurrency. Altcoin Daily covered it in a Youtube Video recently. Rather than predicting the short-term price figures which are nothing but speculation, he instead chose to predict the long-term future of the cryptocurrency.
Palihapitiya is an early adopter of Bitcoin and bought most of his crypto back in 2013 averaging $80 per BTC. His timely investments made him into a Bitcoin billionaire and he still retains some of that Bitcoin for long-term HODLing. Despite owning a lot of stake in the future performance of the crypto, he is very candid about the present and future of the crypto.
First of all, the bitcoin billionaire believes that Bitcoin will be highly unlikely to be used as a daily currency like the fiat is meant to be. The main reason is high volatility. Bitcoin is incredibly volatile and will likely remain so and that diminishes this possibility a great deal according to Chamath Palihapitiya. Unless that is removed, he believes that Bitcoin will never be a mass-level currency.
But, moving on, he has several interesting insights as well. He believes that the success of Bitcoin in the long-term like in the year 2030 is likely tied to the attitude and responsibility of world governments when it comes to their currencies. If the government are irresponsible, Bitcoin’s probability of becoming an alternative reserve currency will become higher. Whereas if the governments are responsible in fiscal terms, there probability will be low. It is no secret that governments like to manipulate their currency. They just cannot help it and have been doing so irresponsibly especially in response to global financial crisis-like situations including the 2008 crisis and now the Coronavirus (Covid-19) scare. So, comparing previous behaviour, governments are likely to become more irresponsible in currency inflation, leaving the door open for cryptocurrencies and other fiscal instruments to gain edge over it. To break it, a kind of quasi gold standard will have to be brought back but that will be close to impossible as the level of mistrust is extremely high.
Based on this, Palihapitiya also gives an interesting view of Bitcoin. He believes that in the long-term, Bitcoin will either be zero or worth millions per BTC. Based on the predictions for the future and continued recklessness of the reserve banks around the world, it is highly likely that it is going to be the latter.
Image source: Flickr.com
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