Bitcoin billionaire Chamath Palihapitiya sees BTC as insurance against central bank policy

Chamath Palihapitiya has become one of the most prominent investors in recent years through the use of Special Purpose Acquisition Companies (SPACs).

Among other things, he made headlines when he brought Richard Branson’s Virgin Galactic to the public through a SPAC. Palihapitiya is not only a pioneer in the field of venture investments, but also a big fan of Bitcoin.

Together with a few partners, he is said to have owned 5% of all BTCs in circulation in 2012, which means they probably owned about 300,000 coins. No comments have been made about what happened to these BTCs, and it is unclear whether the Bitcoin Investor review are part of his personal property or that of his huge venture fund Social Capital. In a new interview with CNBC, the BTC billionaire now talks about the asset and explains why, in his view, it makes sense to invest.

Why Bitcoin is a type of insurance policy

In summary, Chamath Palihapitiya explains in the CNBC interview that he considers Bitcoin a kind of insurance policy against irresponsible central banks and governments. This opinion reflects the opinion of many Bitcoin maximalists and crypto fans:

I think of [Bitcoin] as the insurance policy that allows me to sleep peacefully at night in case the world’s central banks and governments step on a landmine.

On CNBC’s „Squawk Box“, the investor, who was one of Mark Zuckerberg’s earliest employees, notes that Bitcoin is not meant to be traded in his opinion. Instead, he says that BTC is an asset backed by a set of beliefs and foundations that are literally „the reverse of how the world’s financial infrastructure works. Fittingly, Palihapitiya has stated many times in recent months that Bitcoin makes sense now more than ever.

In an earlier interview with the well-known Anthony Pompliano, who also used to work at Facebook and is now a dedicated Bitcoin investor, Palihapitiya said that the asset could reach millions of dollars in value due to macro trends. He shares the view that the economy has reached a point where extreme deflation or inflation could occur, which would increase BTC’s value proposition.

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Not interested in DeFi

While Palihapitiya holds large pieces on Bitcoin, the billionaire does not pursue the DeFi range apparently particularly intensively.

To the question of the Blockchain journalist Laura Shin, whether he „observes, what goes on in DeFi“, the investor answered plumply:

I do not even know what that is.