Bitcoin (BTC)’s price has risen dramatically in recent days and weeks, recently rising above $ 40,000. According to venture capitalist and billionaire Chamath Palihapitiya, Bitcoin is an asset largely tied to government authority.
Referring to a possible time horizon of five or ten years, Palihapitiya said he thinks Bitcoin is likely to reach $ 200,000 at some point. “The reason for this is that every time you see all these things happening, you just remind them that wow our leaders are not that reliable and trustworthy,” he said in an interview with CNBC on Thursday. He added:
“In that case, we really need to have some kind of insurance, you know, insurance that can keep us under our pillow, that gives us access to an uncorrelated fence.”
Since the pandemic hit the world in 2020, governments around the world have taken various measures to combat its economic impact. The United States in particular has printed and spent massive dollars.
Boundless and managed by the people, Bitcoin allows controllers to control their funds themselves – no centralized authority is required. In addition, in October 2020, Fidelity released a report showing the lack of price correlation of Bitcoin with other markets, such as gold and equities.
“It will eventually turn into something much more important, but at the moment you are just getting all these data points that prove this thing,” Palihapitiya said about Bitcoin, adding:
‘The structure of society has weakened, and until we realize how it can get better, it’s time to have just a little schmuck insurance on the side, and everyone walks in. It’s just an amazing thing. I would never have thought of that. ”
Crypto has seen a notable adoption since the beginning of 2020, including major players interested in BTC. However, some influential financial figures, such as Kevin O’Leary of Shark Tank, remain skeptical about Bitcoin, citing regulation as a possible issue.
The U.S. Commodity Futures Commission has previously classified Bitcoin as a commodity, although recent action shows an increase in cryptocurrency regulation, in part clearly in a government proposal limiting digital asset portfolios.