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BTC · 8w

Billionaire Investor Makes The Case For A $1 Million Bitcoin Price

Chamath Palihapitiya, founder and chief executive officer of Social Capital LP, listens during the ... [+] Bloomberg Business of Equality conference in New York, U.S., on Tuesday, May 8, 2018. (Mark Kauzlarich/Bloomberg) © 2018 Bloomberg Finance LP

Social Capital CEO and former Facebook FB executive Chamath Palihapitiya was an early Bitcoin investor. He bought a lot of the cryptocurrency back in 2013 when the Bitcoin price was around $80 per coin, and he claims that, at one point, he owned around 5% of the entire Bitcoin monetary base.

In a recent discussion with Morgan Creek Digital Partner Anthony Pompliano, Palihapitiya shared his views on the current state of the global economy and governments’ different options for getting things back on track. Additionally, Palihapitiya explained how Bitcoin could stand the gain from the major economic crisis of the 2020s.

Although he thinks Bitcoin is still too volatile for mass adoption today, Palihapitiya believes the chances for Bitcoin to succeed as a global reserve currency have increased over the past few months.

Bitcoin Volatility Still Too High

When first asked for his thoughts on Bitcoin in the context of the currently-unfolding global economic turmoil, Palihapitiya pointed out that Bitcoin is not ready for prime time as it exists today.

“It’s still a speculative instrument, and it’s too speculative for it to be reliable,” said Palihapitiya. “If you’re going to make the case that it should replace fiat currency, one thing you have to look at is the volatility of the U.S. dollar. You can’t replace it with something that’s nine sigma more volatile. It doesn’t work.”

Palihapitiya added that traditional fiat currencies are critical pillars of how businesses operate today due to their relative stability. In his view, Bitcoin’s volatility is a crutch that is holding it back from further adoption.

“[Extreme volatility] pus...

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