Chamath Palihapitiya, who first bought bitcoin years ago at an average price of about $100, still believes the cryptocurrency has much furhter to go despite the monster rally this year.
“I think this thing is a $100,000 a coin probably in the next three to four years. And I think it is in the next 20 years a million dollars a coin,” he said on bitcoin in an exclusive interview Tuesday with CNBC’s “Squawk Box.”
The investor said he and two other friends at one point owned 5 percent of the entire float of bitcoin in 2013. He did sell some on the move higher, but still thinks investors should put 1 percent of their net worth in the cryptocurrency.
“This is now a confidence game. There is no real utility in this. This is a fantastic fundamental hedge and store of value against autocratic regimes and banking infrastructure that we know is corrosive to how the world needs to work properly,” Palihapitiya said. “You cannot have central banks infinitely printing currency.”
Palihapitiya is the founder and CEO of Social Capital. He was a former member of the senior executive team at Facebook. His firm has $2.6 billion of assets under management. The investor is also co-owner of the Golden State Warriors basketball franchise.
Bitcoin is up more than 2000 percent in the last one year and now trades above $16,000. Futures on bitcoin launched this week on the Cboe exchange, and gained more than 19 percent Monday in their first full day of trading.
Source: Tech CNBC
Social Capital's Palihapitiya says bitcoin is going to million in the next 20 years