Chamath Palihapitiya, the founder and CEO of Social Capital, a venture capital firm, has made a bold prediction for Bitcoin. According to Palihapitiya, the Bitcoin price could rise to $500,000 or even higher in the coming months. He shared this assessment recently in a podcast and explained the factors that could lead to this increase.
Chamath Palihapitiya, founder and CEO of Social Capital, a venture capital firm, recently predicted that the price of Bitcoin could reach $500,000 or even higher levels in the coming months. He shared this assessment in a podcast, explaining that this price increase is based on historical price developments during previous halving cycles.
Influence of Halving Cycles and Institutional Adoption
In the podcast, Palihapitiya explained that Bitcoin could reach this level, considering its previous price developments during the halving cycles, if countries start to hold Bitcoin as a hard asset. He presented a chart showing the average gains of Bitcoin after the halving cycles. According to this, Bitcoin could reach nearly $500,000 based on the numbers achieved during the third halving cycle of the cryptocurrency.
An even more optimistic scenario could occur if the average growth rates of the second and third halving cycles are considered. In this case, Bitcoin could be worth over a million dollars 18 months after the latest halving. Palihapitiya referred to former Xapo CEO Wences Casares, who explained that the demand for Bitcoin is driven by the adoption of countries using it as a reserve asset.
Bitcoin as a Replacement for Gold and the Role of the Dollar
Palihapitiya further emphasized that Bitcoin has the potential to completely replace gold and become a transactional utility for hard assets. This development, along with concerns about the devaluation of the dollar, could make Bitcoin an attractive investment opportunity.
In January, Palihapitiya predicted that 2024 will be the year when Bitcoin will bridge the gap and become a mainstream financial asset.
