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December 13, 2020

Billionaire Chamath Palihapitiya Says Bitcoin Becoming More Than a Hedge in Era of Massive Monetary Intervention

By Daily Hodl Staff

Billionaire investor and CEO of Social Capital Chamath Palihapitiya says he’s planning to become more vocal about his support for Bitcoin.

Palihapitiya, who famously bought 1 million BTC back in 2013, says in a recent interview with Bullish that his interest in the space is being reignited.

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“I’ve tried to temper [my excitement]. I do think that I’m going to become a little bit more vocal around my support of it.

I was an early owner. I’ve owned it for a very long time. I think my dollar cost average is $120, something like that. My first purchase was $80. I stopped purchasing at $130.”

Palihapitiya says he’s long viewed BTC as a hedge against global economic calamity, but he now thinks its use case could be even larger.

“I think it’s a hedge. I’ve always viewed it as sort of schmuck insurance against exactly this orthodoxy that you just talked about. But I think in other countries it’s more than a hedge. I think it’s becoming a principal mechanism of value, storage, and exchange.

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I’m going to spend a little bit more time now. I kind of set it and forget it. A bunch of [my] coins went to a bunch of different companies to stand up a bunch of different businesses for them, lending, ETFs, trading, etcetera because I didn’t want to own the coins. I just wanted shares because it was easier for me to tax structure shares. But I’m going to pay a lot more attention going forward and I’m going to make this one of these four or five things that I now become an expert in again.”

In this era of emergency government stimulus measures and massive money printing, Palihapitiya says the Fed will continue to keep equities afloat.

“The level of intermingling between fiscal and monetary policy, I’ve never seen that before. I think we won’t really know what that hangover feels like for another decade…

We know at least until 2023 you can be long equities basically with your eyes closed… The Fed basically said we’re going to keep rates at zero until 2023. So what that basically means is you can be effectively long and for some people if they know how to manage the risk levered long equities, because you’ll always have a bid.”

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Tithi Luadthong