21.10.2021

Bitcoin has already begun to replace gold. What will happen to cryptocurrency in the near future?

Bitcoin has already replaced gold – this is the opinion of the famous investor, billionaire and board member of Virgin Galactic, Chamat Palihapitiya.

During his recent interview with CNBC reporters, he stated that the process of capital transfer from the precious metals market to the crypt has already begun and will only accelerate in the future. At the same time, Bitcoin itself will always remain the best alternative to gold. Let’s talk about what is happening in more detail.

Bitcoin looks great today. On the hourly chart, BTC approached the $ 45,000 mark, which clearly hints at the market’s willingness to fly higher, taking into account the recent low at $ 40.75 thousand.

Bitcoin price hourly chart

In the future, BTC and cryptocurrencies in general will only develop. At least this is hinted at by the comments of the billionaire Chamat Palihapitiya.

Bitcoin vs Gold: Who Will Win?

Here is one of the quotes of the billionaire, in which he shares his vision of what is happening. Replica published by Decrypt .

It is very difficult for me, sitting here, to give you any price predictions, but I can fairly confidently say that Bitcoin can effectively replace gold.

That is, the investor does not consider it necessary to set any goals for the growth of the Bitcoin rate. At the same time, he no longer doubts that the first cryptocurrency significantly bypasses the precious metal in its characteristics.

Billionaire Chamat Palihapitiya

However, in terms of its price indicators, BTC managed to bypass gold a huge number of times. As an example, here again is a graph showing the behavior of investing one dollar in Bitcoin and gold on October 6, 2009. In almost twelve years, a tiny investment in cryptocurrency would have generated the equivalent of $ 57 million, while gold has risen in value by just 67 percent. Accordingly, the invested dollar rose to only $ 1.67.

Comparison of the effectiveness of investments in Bitcoin and gold at the end of 2009

Palihapitiya is betting not only on BTC – there are enough ecosystems in the cryptosphere that are already gaining real value among their functions. The expert continues.

Now, before our eyes, what Bitcoin was supposed to be is developing. Smart contracts , the best savings and capital insurance, loans and more.

Bitcoin price change in the last 90 days

Here we are talking about the rapid development of the sphere of decentralized finance or DeFi, which skyrocketed to the peak of popularity at the end of 2020. Various platforms in the form of popular altcoins now provide a whole range of necessary capital services for all categories of investors and traders. Moreover, regardless of their wealth, location and other features.

The share of the billionaire’s investment is distributed with minimal risk within the cryptosphere. Most of his money allocated for digital assets, Palihapitiya invests in Bitcoin , leaving “only a small part of the funds” for other projects.

Naturally, I haven’t invested much money in anything other than Bitcoin.

Evolution of the Internet and the place of the cryptosphere in this process

Stating that he is “very concerned about medium-term inflation,” Palihapitiya also noted that he wants to own three things: fast-growing assets (companies that grow more than 50 percent a year ), cash-generating assets (shares of mining companies) and independent from the rest. asset markets. In the latter category, he placed “Bitcoin, Solana and a lot of DeFi protocols, because they are great protection against crisis or inflation.”

When asked about the regulation of the crypto industry and the opposition of governments against Bitcoin, Palihapitiya replied with the following quote.

I think Bitcoin is hard enough to kill. Technically speaking. By its structure, cryptocurrency is the deepest option for the development of the Internet that I have ever seen.

However, decentralization and the Internet as a whole still have their drawbacks – the complete dominance of large tech companies, which even translates into censorship of information. However, in the foreseeable future, the situation will change dramatically: the dominant players in the “next version” of the Internet will be decentralized organizations and cryptocurrencies.

We believe that Chamat’s point of view can be listened to. Especially considering that he is not fixated on one Bitcoin and evaluates what is happening in the blockchain industry in a complex manner. In this regard, it can be assumed that further the advantages of BTC against the background of gold will be understood by more people.

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