Bitcoin Has Already Effectively Replaced Gold, According to Billionaire Investor Chamath Palihapitiya

Billionaire investor and former Facebook executive Chamath Palihapitiya says that Bitcoin (BTC) has already effectively replaced gold as a store of value. 

In a new CNBC interview, the founder and CEO of Social Capital shares why he believes the market share of the flagship cryptocurrency will continue to grow. He also predicts a swath of other crypto projects growing in prominence due to solid use cases. 

“Bitcoin, I think, has effectively replaced gold, and it will continue to do so and so that market cap is just going to grow. 

Then for the first time, I think we’re seeing the initial versions of the solution that we thought Bitcoin was supposed to be: smart contracts, better savings accounts, better insurance, better credit scoring, and that’s happening through this DeFi (decentralized finance) stuff that’s being built on Ethereum and Solana.”

The venture capitalist says he’s wary of medium-term inflation and names Bitcoin and two other altcoins as part of an inflation-resistance investment portfolio. 

“I’m very concerned about medium-term inflation and so in an inflationary environment, in my very simplistic view of the world, I want to own three things: hypergrowth [firms] because hypergrowth can always outrun inflation. Think of that as like companies that are growing 50 plus percent a year. It’s incredible growth, right? 

Then I want to own cash-generative assets, a great example is like a mining stock. I know that sounds crazy, but it’s pretty incredible. And then I want to own non-correlated assets: Bitcoin, Solana, DESO (Decentralized Social), a lot of the DeFi protocols because it’s a great counter-intuitive hedge against all of these stuff.”

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Source: https://dailyhodl.com/2021/10/04/bitcoin-has-already-effectively-replaced-gold-according-to-billionaire-investor-chamath-palihapitiya/