Within the framework of The Pomp Podcast #256, the two talked about the ongoing quarantine, the investment strategies of hard times as well as about the post-pandemic world. The Bitcoin (BTC) perspective was also not ignored.
Still in a ghetto
Despite being known mostly as a venture capitalist who invested in Slack and Playdom, Mr. Palihapitiya has a seven-year relationship with the flagship cryptocurrency. He bought Bitcoin (BTC) for the first time in 2013 at about $80 and wrote for Bloomberg about his motivation. According to him, he never added to his Bitcoin (BTC) savings and, these days, leaves it for the management of his team.
Despite the fact that 2013 was quite some time ago, Bitcoin (BTC) is still mostly about speculation for Mr. Palihapitiya. It is ‘too speculative to be reliable (...) too volatile’ to replace the U.S. Dollar as the major world currency. The billionaire believes that:
It pushes it [Bitcoin - V.S.] into this ghetto of day traders and speculators. We’re still in that ghetto.
To get rid of these vulnerabilities, Bitcoin (BTC) needs interest from long-term holders.
In terms of investment returns, Bitcoin (BTC) knows no golden mean. The price could go thousands of percent up or down in a matter of days, Mr. Palihapitiya concluded.
This is either zero or it’s millions
What is important for Mr. Palihapitiya is the fact that Bitcoin (BTC) has a chance at becoming the new gold standard within the next ten years, ‘Gold 2.0’. While that would be highly undesirable for banks and governments, the billionaire believes that this process may be driven by individuals and people.
Subscribe to U.Today on Twitter and get involved in all top daily crypto news, stories and price predictions!