The price of bitcoin (BTC) has risen dramatically in recent days and weeks, recently reaching $ 40,000. Bitcoin, an asset largely associated with state power, is a hedge against global insecurity, according to venture capitalist and billionaire Chamat Palihapitiya.
Citing a possible five- or 10-year horizon, Palihapitiya said he believes Bitcoin is likely to reach $ 200,000 at some point. “The reason is that every time you see all these things happening, it just reminds you that wow our leaders are not as reliable and trustworthy as before,” he said in an interview with CNBC on Thursday. He added:
“So just in case, we really need to have some, you know, insurance that we can keep under our pillow, which gives us some access to uncorrelated hedges.”;
Since the pandemic hit the world in 2020, governments around the world have taken various measures to combat its economic impact. In particular, the United States has printed and spent huge sums of dollars.
Without borders and managed by people, Bitcoin allows owners to control their funds themselves – no centralized power is required. In addition, in October 2020, Fidelity published a report showing the lack of correlation between Bitcoin prices and other markets, such as gold and stocks.
“Eventually it will move on to something much more important, but right now you’re just getting all this data to prove it,” Palihapitia told Bitcoin, adding.
“The fabric of society is worn out and until we figure out how to make it better, it’s time to just have a little monstrous insurance on the side and let everyone run. It’s just an amazing thing. I could never imagine it. ”
Crypto has seen a remarkable amount of acceptance since early 2020, including big players gaining interest in BTC. However, some influential financial figures, such as Kevin O’Leary of Shark Tank, still remain skeptical about bitcoins, citing regulation as a potential problem.
The US Commodity Futures Trading Commission has previously classified bitcoin as a commodity, although recent actions show increased regulation of cryptospace, in part apparently in a government proposal limiting self-control of digital asset portfolios.