Bitcoin billionaire and venture capitalist Chamath Palihapitiya thinks that cryptocurrencies counter capitalism and could help create a better financial future for the world.
On a new episode of the All-In podcast, Palihapitiya makes the case for crypto assets and decentralized finance (DeFi), saying that crypto is already dramatically changing the way capital is allocated.
“It destroys capitalism. If you think about what capitalism is, it’s not just a return on investment, but it’s the tonnage of dollars. So anyone who’s a big investor here – you’re putting more and more dollars in for more and more dollars out.
That’s the pressure. These guys are under enormous pressure to get tonnage of dollars through the system in a productive way. These guys are at the forefront.
But when you look at most of the projects on Solana [SOL], they’re seeded with a few million dollars, and these are $60-$80 billion market cap projects. And so, I don’t know how capitalism survives in that world.”
Palihapitiya says the autonomous nature of crypto assets, as well as crypto-based systems of governance that simply rely on code instead of human beings, are another game changer.
Governance goes completely out the window. Because you’re essentially replacing a set of norms that we’ve all agreed to about what a company is. It’s an LLC or C-Corp that is incorporated with laws. There’s recourse for you, you can go to these places and sue them. Now it’s a DAO (decentralized autonomous organization).
It’s a bunch of rules written in a blockchain. ‘Here’s how it all works, here’s how I make my HR decisions. Here’s this, here’s that.’ And then you basically decompose everything into a service where it’s recursive. You cannot build with me unless you make yourself buildable to others.”
The end result, according to Palihapitiya, is a digital transformation that will reshape the nature of capitalism in a remarkably positive fashion.
“When you add all these… things together, to me it’s the most incredibly, positively disruptive force we have seen. I think it will destroy wealth. I frankly couldn’t give a fuck and I think it’s better for the world.”
IDon't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
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 loses 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/Liu zishan