Billionaire Chamath Palihapitiya questions Bitcoin’s legitimacy amid US banking crisis
Billionaire venture capitalist Chamath Palihapitiya weighs in on Bitcoin (BTC) and questions whether the royal crypt can actually be a legitimate alternative to the current financial system.
In a new episode of the All-In Podcast, early Bitcoin investor says the relatively small number of BTC users around the world suggests that most people don’t see the royal crypto as a potential replacement for the global banking system.
“If you look at the total number of non-zero Bitcoin wallet addresses in the world, and let’s be extremely generous and say it’s a hundred million, there’s still seven billion people in the world. So I think just anybody who’s trying to talk about the fragility of the US and worldwide banking system is right. And that part I think is pretty clear and callous. But every time they try to connect it to Bitcoin, they sound like a crazy person because they’re just talking their book.”
Palihapitiya also says that if Bitcoin was a real response to concerns over the global dominance of the US dollar and banking stability, he would have expected the price of BTC to have gone much higher.
BTC was worth $19,662 on March 10, the day Silicon Valley Bank collapsed. It trades for $27,044 at the time of publication.
“And the best example to demonstrate this is in all this chaos if Bitcoin or cryptoassets, in general, was really a legitimate exit and rescue from US dollar hegemony and all that, why isn’t Bitcoin at least at $35,000 per coin right now ?It’s barely over $28,000. It hasn’t really moved that much. And I think the real answer is that most people in Bitcoin aren’t trying to hedge their existing fiat currency exposure. They’re just picking off people in the retail market, and they’re just trading with this thing.
How else do you explain an asset that hasn’t been absolutely demolished in the face of all this terrible news about the financial system? And I think the answer is that there is still a dead end of users. It is not widely available, not widely adoptable, not widely used. I still think it’s valuable. I was the earliest proponent of Bitcoin [in] 2011, 2012. So I think there’s a place for that in one’s portfolio, but I think just connecting those dots misses the point.”
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