Chamath Palihapitiya, founder of Social Capital and co-owner of the Golden State Warriors, voiced his opinion on the value and potential growth of Bitcoin in an interview on CNBC on Tuesday.
The business leader, who first invested in Bitcoin in 2012, indicated that he sees the price of Bitcoin rising massively in the next 20 years as adoption continues to grow.
His analysis echoes other commentators and investors who have seen the potential for Bitcoin’s price to reach levels close to $1 mln. Palihapitiya explains his prediction as based on the evaluation of Bitcoin as a store of value comparable to gold. He said:
“This thing has the potential to be comparable to the value of gold…This is a fantastic hedge and store of value against autocratic regimes and banking infrastructure that we know is corrosive to how the world needs to work properly…I think this thing is a $100,000 a coin in the next 3-4 years, and in the next 20 years will be $1 mln.”
Bitcoin as a hedge against banks
The main argument, according to Palihapitiya, is that Bitcoin presents a hedge against potentially massive problems being caused by the current banking infrastructure.
Should the banking structure fail, Bitcoin is “fundamentally disconnected” from the current platform. His final advice? Put at least one percent of what you invest into Bitcoin -- it “may actually save us all”