Bitcoin: better than a sleeping pill?
More and more billionaires are confessing their love for Bitcoin (BTC). This is now the case of Chamath Palihapitiya, former Facebook executive and current CEO of the Social Capital investment fund, who once again praises the king of cryptos.
Bitcoin on the stock market, but not fiats or shares
In an interview with CNBC, Chamath Palihapitiya confirms how much of a Bitcoin fan he has become. For the billionaire, all investors should devote at least 1% of their portfolio to Bitcoin :
„It’s the insurance policy I use to help me sleep well at night, in case central banks and governments around the world set foot on a mine.
The mine in question is the fatal spiral of hyperinflation:
„The reality is that they’ve printed so much money that we’re likely to continue to see asset price inflation regardless of who’s in the White House.
The advent of Bitcoin would create „a transfer of wealth on an unprecedented scale“.
For the same reason, the CEO of Social Capital warns about stock market shares. Indeed, Bitcoin and shares are for him very distinct assets:
„(…) there is fundamentally no correlation. Bitcoin] is completely the opposite of the way the financial infrastructure of today’s world works.
Chamath Palihapitiya goes even further in his reflection on the future of Bitcoin. If the traditional financial world ends up imploding because of its uncontrolled monetary impressions, and the price of Bitcoin explodes :
„I think it will create a huge redistribution of wealth. (…) it will push affordability to its limits, for billions and billions of people. In this, there is much to be proud of and enthusiastic about.
On this last point, the billionaire also insists that Bitcoin is an asset to keep: „you buy it, you keep it, you put it aside“, but you don’t have fun speculating with it. You have to keep it as „protection“.
Chamath Palihapitiya is not the first to think that Bitcoin could become tomorrow’s monetary benchmark. It’s interesting to see that more and more of the most successful investors think the same about Satoshi Nakamoto’s creation.