Chamath Palihapitiya, a billionaire from the US, is urging other countries to consider incorporating Bitcoin into a dual currency system alongside their national currencies. He believes that if Bitcoin continues on its current trajectory, it could eventually replace gold. Additionally, Palihapitiya predicts that if Bitcoin adheres to its post-halving price cycle, it will reach a price of $360,000 by April 2022.
For decades, the US has used its dollar as a means to maintain global dominance and secure its position as a superpower. Palihapitiya suggests that any country looking to break free from the monopoly of the US dollar should explore the idea of incorporating Bitcoin into their financial system alongside their national currency.
During a recent episode of the “All In” podcast, Palihapitiya discussed Bitcoin with his Silicon Valley friends, including early Uber and Facebook investor David Sacks. He believes that while some countries, like the US, will always view Bitcoin as a threat to established institutions, an increasing number of countries are recognizing the benefits of a dual-currency system.
These countries will consider both their local currency and Bitcoin as necessary components of their financial system. They will use their national currency for day-to-day transactions, while Bitcoin will be utilized for purchasing assets with long-term value. Palihapitiya sees this concept as a powerful solution.
This idea of incorporating Bitcoin into a dual-currency system is not new. Countries like Russia and Iran, who are rivals of the US, have already expressed interest in Bitcoin and stablecoins as alternatives for global trade in an effort to move away from the US dollar. Additionally, China has been leading the way in exploring central bank digital currencies (CBDCs), such as its digital yuan.
In addition to discussing the benefits of a dual-currency system, Palihapitiya also made predictions about the future price of Bitcoin. He analyzed the price patterns of the last three post-halving cycles and projected that Bitcoin will surpass $1 million within the next 18 months. By mid-October, he expects Bitcoin to reach $99,643, and by mid-January, it will surpass $238,000. By April 2022, he predicts Bitcoin will be trading at $362,000. If Bitcoin follows this pattern, it could reach a price of $1.14 million by the end of the 18-month period.
Overall, Palihapitiya’s message is clear: Bitcoin has the potential to revolutionize the global financial system, and countries should seriously consider incorporating it into their monetary frameworks alongside their national currencies.