Former Facebook executive and billionaire CEO of Social Capital, Chamath Palihapitiya, believes Bitcoin has replaced Gold. Speaking to CNBC’s Scott Wapner at the Delivering Alpha conference yesterday, Palihapitiya made his bullish case for Bitcoin but said it would be hard to give an accurate price prediction. The best he could offer was to say Bitcoin is likely heading for $200,000 in the next five to 10 years.
“It’s very hard for me to give a price prediction, but I can pretty confidently say that bitcoin has effectively replaced gold,” he said.
— Delivering Alpha (@DeliveringAlpha) September 29, 2021
Palihapitiya also voiced his concerns regarding the increasing state of US inflation, saying he would seek protection in ‘hypergrowth’ companies such as Sofi, Clover Health and Opendoor Technologies. He also noted the cash-generating potential of mining stocks and said he had some investments in the EV (Electric Vehicle) sector.
With 1.5 million Twitter followers, the Sri Lankan-born Canadian venture capitalist is a force to be reckoned with, holding a Chairman position at several companies, including Virgin Galactic.
Bitcoin struggled to break above $45k earlier this week but has held it’s position above the significant psychological level of $30k since bouncing off it in mid July. Over the past week it has tested $40k support twice and managed to stay above the level while securing a higher low. This indicates a stong potential for a break to the upside if the current ascending triangle pattern continues.
Gold has been long held as the safest hedge against inflation or losses in times of financial crisis. However, over the past few years, innovative investors have been migrating some of their capital to Bitcoin due to it’s ease of use and strong security. While gold still holds a much higher overall market value than Bitcoin, it’s hasn’t enjoyed anywhere near the same level of growth.