- The CEO of social capital, Chamath Palihapitiya made comments saying that the price of bitcoin will either reach millions or drop down to nothing.
- For the Facebook exec, the question of whether the cryptocurrency succeeds will be determined by the existing financial system.
Whilst talking to one of the most prominent figures in the crypto space, Anthony Pompliano, the CEO of social capital and the former executive at Facebook, Chamath Palihapitiya made comments saying that the price of bitcoin will either reach millions or drop down to nothing.
For the Facebook exec, the question of whether the leading cryptocurrency succeeds will be determined by whether the existing financial system could continue on its current path towards potential turmoil.
The CEO made arguments for his case of BTC gaining more than 100 times from its current price rests on deteriorating public confidence in the overall dominant financial space.
“The path dependence for Bitcoin is if it looks like [debasement] is likely, it will really emerge as a flight to safety… We are driving, slowly, but we are driving towards a cliff. And then, we’re going to drive much, much faster down that cliff or down that hill. And at the end of it is a huge brick wall.”
These predictions come in a long-term package. The former executive of Facebook warned that there is a real chance that in 20 years, if we don’t find a way to inflate our way out of crisis, the gold standard is the way to break inflation. He further said:
“The only way to break the back of inflation is essentially to create some quasi form of a gold standard, but it’ll be almost impossible to do that between governments and central banks. They’ll never agree on an instrument and they’ll never agree on an exchange [rate]. But then, bottoms up, people could decide to do it [with Bitcoin].”