- Bitcoin has continued to grow in potential
- Bitcoin is a viable insurance for people to keep for themselves.
Bitcoin has been the talk of the town of late. The crypto’s price has spiked by close to 100% over the last few weeks. In the last 12 months, BTC has had an impressive 200% gain pricewise. This trend seems to convince even more people that Bitcoin is indeed a serious potential digital asset ripe for both small and large investors. Among the many people convinced of BTC’s power is one Chamath Palihapitiya.
Chamath is venture capitalist, and his success is as a result of his good business acumen. He’s the founder and CEO of Social Capital, an investment firm with over $1.2 billion worth of assets under its management. Speaking during an interview with CNBC, Chamath said that Bitcoin will eventually reach the highs of $200k.
Looking back to the years passed
When asked about what he thinks of Bitcoin’s future, Chamath was reflective of the years right before BTC’s price exploded. Back in 2013, BTC was worth just around $200. A few years later, the crypto’s price hit $20k in late 2017. A few days ago, Bitcoin reached a new ATH (All-Time-High) of $41k.
In his opinion, Chamath thinks that some people may not have taken the coin seriously when it first became popular a few years ago. Some would have thought of it as a joke when it was less than $200. However, the top coin has since proven defiant of negative opinions, going on to attract the attention of big-money investors, governments, banks, and institutional funds. In fact, other notable investors like Max Keiser are of the same opinion as Chamath.
“Bitcoin is an insurance to keep under the pillow”
According to Chamath, Bitcoin’s potential to increase in price isn’t the only motivation to own it. The king of crypto is basically an insurance strategy that could protect people against government overreach. In fact, many people are already converting their wealth into BTC to keep their wealth safe from the increased fiat inflation caused by the uncensored printing of money by government machinery. Another good reason to own the coin is promote privacy.
A trillion dollar industry
Since BTC’s debut into the market more than a decade ago, the crypto market has grown, with hundreds of new crypto projects entering the market every year. As such, the industry’s market cap has continued to expand, save for the periods during the crypto winter that lasted up to May 2020. It’s notable that Bitcoin has always been the instigator for major market movements, both in 2017 and 2020. The entire market moves when Bitcoin moves. Currently, with the coin’s trading high, the crypto market is worth a trillion dollars.