Chamath Palihapitiya, an American billionaire, is urging countries outside of the US to consider adopting Bitcoin alongside their national currencies in a dual-currency system. He believes that if Bitcoin continues on its current trajectory, it could eventually replace gold. Palihapitiya also predicts that if Bitcoin adheres to its post-halving price cycle, its value could reach $360,000 by April next year.
The US has long used the dollar as a tool for global dominance, solidifying its position as a superpower. Palihapitiya suggests that countries wanting to break free from this dominance should explore the use of Bitcoin alongside their national currencies. He discussed this idea on the All In podcast, which he co-hosts with three of his friends from Silicon Valley, including David Sacks, an early investor in Uber and Facebook.
According to Palihapitiya, some countries, like the US, will always reject Bitcoin due to its opposition to established legacy institutions, regardless of its price or mainstream acceptance. However, he sees a growing number of countries adopting a dual-currency approach. These countries will view their local currency and Bitcoin as both necessary for their economies.
Palihapitiya explains that Bitcoin would be used for everyday transactions and for purchasing assets with residual value. He considers this concept to be very powerful.
This idea is not new, as countries like Russia and Iran have already expressed interest in Bitcoin and stablecoins as alternatives for global trade, aiming to reduce their reliance on the US dollar. They have also explored the development of central bank digital currencies (CBDCs), with China leading the way with its digital yuan.
In addition to discussing the potential adoption of Bitcoin, Palihapitiya made a prediction about its price. He believes that Bitcoin will surge over the next 18 months and surpass $1 million. Currently trading at around $69,000, Bitcoin has already gained 2.2% in the past day, with trading volume increasing by 120% after a weekend slump.
Palihapitiya analyzed the price movements of Bitcoin in the three post-halving cycles and found that they all led to significant price spikes in the following 18 months. By averaging the percentage gains of the two most recent cycles, he projected that Bitcoin could reach $99,643 by mid-October, $238,000 by mid-January, and $362,000 by April. If this pattern continues, Bitcoin could be trading at $1.14 million by the end of 18 months.