Social Capital CEO and venture capitalist Chamath Palihapitiya has opined that the first cryptocurrency has already replaced gold.
The debate over Bitcoin’s properties as digital gold has been ongoing for years. Some reject this crypto counterpart of the precious metal, citing that its value is not backed by anything. Others, on the contrary, argue that the availability of the first cryptocurrency, its yield and absolute immunity to any kind of geopolitical boundaries makes this asset an excellent successor to gold, which for years has served as a safe haven for investors wishing to wait out market turmoil. In a recent interview, Chamath Palihapitiya, venture capitalist, engineer, and head of Social Capital, also supported the stance of the latter.
In the entrepreneur’s view, Bitcoin has already replaced gold, and very soon a significant increase in the market capitalisation of this asset will confirm this statement. Yet the question to estimate the real intrinsic value of the first cryptocurrency Palihapitiya found difficult to answer. However, in the past, the head of Social Capital has already declared that BTC has the potential to reach the $200,000 price level.
“Bitcoin, I think, has effectively replaced gold. And it will continue to do so,” said Palihapitiya.
A similar point of view to this venture capitalist is already held by well-known figures in the crypto space such as Michael Saylor, Anthony Scaramucci and Steve Wozniak. Peter Schiff, a staunch Bitcoin sceptic and supporter of gold, can be named as an opponent of this assertion without the slightest doubt. It is likely that the “gold bug” will now seize the opportunity and even try to challenge Chamath Palihapitiya to a debate about the intrinsic value of the first cryptocurrency, as he did just recently with Galaxy Digital CEO Mike Novogratz.
Palihapitiya has previously praised cryptocurrency and its merits, urging investors to allocate at least 1% of their portfolios to it. In addition, the entrepreneur also revealed that he was introduced to BTC about a decade ago and buying parts of it was “the best investment bet” for the venture capitalist.
Palihapitiya is no stranger to preaching about Bitcoin ever since he started investing in it, a few years after the coin’s emergence. In 2017, he said the price of BTC could reach $1M by 2037. Sounds too optimistic? Only time will tell who was right.
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The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
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