The price of Bitcoin (BTC) has risen dramatically in the past few days and weeks, recently topping $ 40,000. According to venture capitalist and billionaire Chamath Palihapitiya, Bitcoin is an asset that is largely tied to the government agency.
Citing a possible five or ten year time horizon, Palihapitiya said that Bitcoin is likely to hit $ 200,000 at some point. “The reason for this is that every time you see all of these things you are reminded that our leaders are no longer as trustworthy and reliable as they used to be,” he told CNBC in an interview on Thursday. He added:
“Just in case we really need some kind of insurance to keep under our pillow that gives us access to uncorrelated coverage.”
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 huge sums of money.
Bitcoin is limitless and people run it. With Bitcoin, holders can control their funds themselves – no central authority required. Additionally, in October 2020, Fidelity released a report highlighting Bitcoin’s lack of price correlation with other markets such as gold and stocks.
“It’s going to move on to something much more important at some point, but for now all you get is all of these data points that prove this thing,” Palihapitiya said of Bitcoin, adding:
“The fabric of society is frayed, and by the time we figure out how to improve it, it’s time to get a little jewelry insurance on the side and everyone runs in. It’s just an amazing thing. I could never have imagined. “
Crypto has seen remarkable adoption since early 2020, including large players gaining interest in BTC. However, some influential financial metrics such as Shark Tank’s Kevin O’Leary remain skeptical of Bitcoin and cite regulation as a potential problem.
The U.S. Commodity Futures Trading Commission previously classified Bitcoin as a commodity, although recent measures show increased government oversight of the crypto space, which is partly evident in a government proposal to limit wallets on self-governing digital assets.