Warriors shareholder Palihapitiya bullish on Bitcoin, says it will ultimately be seen as a safe haven asset.

Chamath Palihapitiya, former Facebook executive and part owner of the Golden State Warriors, stated in an interview with Anthony Pompliano, founder of Morgan Creek Digital, last week that now is a pivotal moment for Bitcoin to shine.

The Dilemma of Bitcoin

Chamath Palihapitiya, former Facebook executive, shareholder of the Golden State Warriors, and CEO of the venture capital firm Social Capital, discussed a series of issues related to the current global economy in an interview with Anthony Pompliano.

When talking about Bitcoin, Palihapitiya pointed out that Bitcoin is currently in a dilemma. Rather than being a store of value, it is more of a speculative tool at this stage. The strong speculative nature makes it difficult to be considered a reliable medium of exchange.

"If a currency can evaporate by 2,000 basis points in half an hour, it is challenging to use it efficiently."

Bitcoin to Achieve Quasi-Gold Standard

Palihapitiya mentioned that for Bitcoin to overcome its current situation, it must meet the following conditions.

Firstly, due to Bitcoin's high volatility leading to an abundance of short-term traders and speculators, the speculative nature needs to be reduced, and more long-term holders who believe in the fundamentals should enter the market.

Secondly, people must feel that the traditional fiat currency framework might actually collapse. Under such conditions, Bitcoin will eventually be seen as a safe haven asset.

Palihapitiya added that he believes Bitcoin is a binary commodity, with its long-term value either being zero or in the millions of dollars, as Bitcoin aims to achieve a quasi-gold standard and index. Palihapitiya stated:

"By 2030, we may not have solved the problem of currency deflation. The only solution is to create a new quasi-gold standard, something governments and central banks will never agree to, but people have the right to decide whether to do it."

Everyone Should Allocate 1% of Total Assets to Bitcoin

Chamath Palihapitiya has been a strong advocate of Bitcoin and an early investor in the cryptocurrency. In 2013, he purchased a significant amount of Bitcoin, at one point holding 5% of the total circulating supply. In February of this year, he publicly stated that in the face of a global financial crisis, everyone should allocate 1% of their total assets to purchasing Bitcoin.

"I 'don't think' that when you wake up early in the morning, see the panic due to the coronavirus, and the Dow Jones index drops by 2,000 points, you should rush to buy Bitcoin. That would be a foolish strategy. I think a reasonable strategy is for everyone to have 1% of their net assets completely unrelated to how the world works."

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