Although Bitcoin is currently used as a hedge unit in most portfolios, Palihapitiya thinks it will transit to something much more important in the near future.

Renown Bitcoin maximalist and billionaire venture capitalist Chamath Palihapitiya said during a recent interview that Bitcoin could hit $200k in five years if the current conditions prevail. According to Palihapitiya, more investors are coming to terms that the governments are not reliable thus an urgent need for a reliable hedge factor in their portfolios. Whereby Bitcoin perfectly falls into place as a reliable portfolio hedge now and in the coming years.“Every time you see all of this stuff happening it just reminds you that wow, our leaders are not as trustworthy and reliable as they used to be,” Palihapitiya said. “And so just in case, we really do need to have some kind of insurance we can keep under our pillow that gives us some access to an uncorrelated hedge,” added he.Although Bitcoin is currently used as a hedge unit in most portfolios, Palihapitiya thinks it will transit to something much more important in the near future.Chamath Palihapitiya and BitcoinApparently, Palihapitiya became involved with the Bitcoin ecosystem when the asset was trading below $100 and was once quoted to have own 5% of the total circulating BTC units.Previously, Palihapitiya noted that Bitcoin is highly favored among most investors not only due to its return capabilities but also its decentralized nature. Notably, he said that Bitcoin could depose Gold from its trillion-dollar market in the next few years.According to Palihapitiya, Gold is mostly controlled by global central banks with a very small portion under retail circulation. However, Bitcoin is the opposite of that by nature as it is readily accessible by retail, and institutional investors.With only 21 million units of Bitcoin set to ever exist, the asset is poised to capitulate into millions as predicted. Mind you, the asset has a controlled inflation whereby miners currently enjoy a reward of approximately 6.25 coins per every 10 minutes. Notably, the reward rate will half by 2024 to 3.125 coins per block.Some have argued that a significant portion of the Bitcoin units have disappeared into thin air through lost security keys. Additionally, research has shown that more than half of the Bitcoins in circulating supply is locked by investors for speculation purposes.Putting all these factors into place, Palihapitiya thinks the asset will hit $200k in five years. “The fabric of society is frayed and until we figure out how to make it better it’s time to just have a little schmuck insurance on the side,” said Palihapitiya.At the time of writing, Bitcoin was trading around $35,615.40, having dropped approximately 10% in the past 24 hours. However, the asset has gained over 97% in the past 30 days and is now up 35.1%, and 8.1% in the past 14 days and seven days respectively according to CoinGecko.


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