Bitcoin, despite its rapid growth over the past few months, still has a lot of potential for further leaps. This was announced by venture capitalist Chamat Palihapitiya, known for his huge investment in the main cryptocurrency.
On the air of a recent TV show on CNBC channel, Palihapitiya made a bold forecast regarding the rise in the price of Bitcoin – the investor expects the price of the cryptocurrency to rise to at least $ 100 thousand and, in addition, does not consider it something incredible.
Recall that Chamat Palihapitiya is the CEO of Virgin Galactic and a well-known fan of cryptocurrencies. According to rough estimates, he owns at least 100 thousand BTC, which were acquired at an early stage of the existence of the cryptocurrency in 2012-2013. Well, according to the latest data, the investor’s fortune is estimated at about a billion dollars.
Chamat has repeatedly commented on the topic of Bitcoin, cryptocurrencies and trading. For example, in October 2020, an investor advised coin owners not to constantly monitor the exchange rate of an asset, because this would only “spoil the nerves” and “confuse”. Read more about this recommendation in a separate article.
What will happen to Bitcoin: expert commentary
Analysts are divided on what will happen next with Bitcoin in the near future: many believe that the cryptocurrency is extremely overbought from a technical point of view and due to this very soon it will face a correction, that is, a collapse. Others point out that pressure from large buyers on the market should outweigh the likelihood of a BTC crash. Still, now on the side of buyers there are the world’s largest companies, ready to invest hundreds of millions of dollars in bitcoins.
Chamat Palihapitiya clearly belongs to the second group. During his recent interview on CNBC, he focused on the long-term prospects of the digital asset. In his opinion, Bitcoin has every chance of easily overstepping the $ 100,000 mark. Then BTC will head to the $ 150K line, then to the $ 200K line, and so on, CryptoSlate reports. Bullrun may take months or even years, but in the end, Bitcoin will still conquer new heights that previously seemed completely incredible.
Here is a transcript of a conversation with a billionaire. We recommend that you look if you understand English by ear.
And the point here is not even in any specific numbers. The whole point is in the huge potential of cryptocurrency, which has just begun to unfold against the backdrop of problems in the traditional economy. The coronavirus pandemic has undermined people’s faith in economic institutions familiar to everyone, and as the price of BTC rises, more and more investors will begin to choose Bitcoin as their main asset.
Recall that Bitcoin stands out favorably against the background of conventional currencies issued by the state. First of all, officials and bankers cannot influence the peculiarities of a cryptocurrency, that is, the operation of an asset is determined by rules in the form of a program code. Accordingly, government officials are not able to “create out of thin air” a couple of million bitcoins in times of crisis to help the economy.
Since this is exactly what happens with common currencies, people see the difference and become interested in Bitcoin and other coins. In addition to the already mentioned advantages, you can send BTC to a recipient anywhere in the world, in addition, transferring thousands of dollars is much cheaper than it is in a bank.
We believe that from the comments of the billionaire it is necessary to understand the essence, and not the possible numbers of the course. Still, any predictions are attempts to guess the future, which often end in nothing. However, in this case, Chamat emphasizes the advantages of Bitcoin against the background of classic money and makes it clear that the potential of a 41 thousand dollars cryptocurrency is not exhausted.
Still, lockdowns around the world are not over yet, and the newly elected President of the United States, Joseph Biden, has already promised to help the residents of the country with payments of thousands of dollars. And for that, you will have to print new portions of money, while Bitcoin will continue to work according to the plan.