Billionaire CEO explains how BTC can stand to gain from the current economic crisis

• CEO of Social Capital, Chamath Palihapitiya, believes now is the time for Bitcoin to shine.
• With respect to replacing USD or other global currencies, he noted that Bitcoin is still too volatile.

In a recent interview with Anthony Pompliano, Chamath Palihapitiya, the CEO of venture capital firm Social Capital, shared his views on the present global economy. He also explained how it could be the right time for Bitcoin to shine. 

I think Bitcoin needed a moment like this for it to be relevant. It’s still a speculative instrument, and it’s too speculative for it to be reliable.

Furthermore, Palihapitiya addressed a few topics about the current global economic crisis. With respect to replacing USD or other global currencies, the CEO noted that Bitcoin is still too volatile.

The only market that’s even more important than the debt markets are the currency markets.

The billionaire CEO explained that currency markets are relatively less volatile, moving in value over time.

In that, there’s value because it allows more market participants to be active in that market so that they can use it as a critical pillar of how they run their business.

Palihapitiya believes Bitcoin’s volatility is holding it back from further adoption. 

You can’t effectively use it. It pushes it into this ghetto of day traders and speculators, and right now that’s where we are.

He added that speculators and day traders must be out of the picture for Bitcoin to exit the “ghetto” of volatile assets. Additionally, the interest of long-term holders must be maintained. 

Over the next 10 years, where this trajectory is going to take shape — and it is a 10-year trajectory — you’ll have a lot of time to vector into it to protect yourself and to hedge yourself…This is either zero or millions, because what it will do is it will create a quasi-gold standard. It’ll create an index, except instead of having to own gold, where gold is owned by central banks, it is an instrument that has value that’s determined by and between its participants, and it’s owned by everybody.