Chamath Palihapitiya – “Bitcoin Is Going To $200k”

Speaker 1: Jamal Pollycarpus is one of those investors who’s becoming increasingly well known as Time Goes On, why is this the case? Because he’s delivered extremely high investment returns, especially over the past decade. He invested in Amazon early on, Slark early on. He even invested in Tesla back when everyone thought this was a crazy investments. Turns out it wasn’t. And now it’s by far the biggest car company in the world. Another investments that habits here is very big on is Bitcoin. He got asked recently where he thought the price of Bitcoin was going. This is why he said, where is it going? Is probably going to 100, then 150, then 200000 in what period? I don’t know, five years. Ten years. But it’s going there. And what I want to do on this video is show you the reasons why he thinks this. Why is this such a bull on Bitcoin? How much does he hold? Well, other reasons he has to back up his case. So the main thing that Kamath uses Bitcoin for is an uncorrelated hedge against the economy and the current system that we’re in. Let me explain this a bit further so that you can understand. So I think we can all agree that we’re in relatively divisive times. Just look at the politics that is going on right now. Presidents have been banned from social media. Some people agree with the lockdown’s, some don’t. Some people hate Trump. Others love him. No matter what your views are on this, you can’t deny that we’re on shaky grounds at the moment. Now, one, assets that actually benefits from times like these and we’ll continue to do so if they get worse, is Bitcoin. And that’s because Bitcoin doesn’t rely on any banks or governments. Everything’s done with block chain, which cuts at the need for them. So if things get even worse with the markets or the economy or the political system, we could see Bitcoin doing even better. Here’s what Yarmuth said. The reasons we can see Bitcoin hitting high prices is because every time you see all of the stuff happening, it just reminds you that, wow, our leaders are not as trustworthy and reliable as they used to be. And so just in case, we really do need to have some kind of insurance that we can keep under our pillow that gives us some access to an uncorrelated hedge and it’s going to eventually transition into something much more important. But for right now, you’re just getting all of these data points that prove this thing. The fabric of society is frayed. And until we figure out how to make it better, it’s time to have a little schmuck insurance on the side and everybody’s running in because the reality is Bitcoin is a much better version of currency than any fiat money that we’re currently using. Let’s take away those fees. Let’s get rid of centralized control by big banks and governments. Let’s give the Internet a currency where no one has the power to manipulate us. I want to let Samarth explain things a bit further because he’s way more articulate than me.

Speaker 2: When I specifically buy Bitcoin, what I’m thinking to myself is I’m using my own personal capital to hopefully prop up and support the emergence of something that would rip apart the existing financial system. And if it does, God bless it. And what will happen is individuals who are on the right side of history, on the right side of justice, will benefit. Individuals, will be able to get access to capital easier. Individuals will be able to transact, cheaper. Individuals will not get cheated. Simple example. You know, you talk about, for example, like remittances being a big business for those of us who are not white and not born here, who send money back to a third world country, you will know that they’re all there are thugs that stand outside these money depots and will basically charge you like a cover charge to get into the place to get your cash. And so when I send 100 dollars back to Sri Lanka, you know, my uncle or my cousin may only get seventy dollars because he has to give five or 10 years to get through the front door. That’s right. So, like, there’s all of these things that are just so good and will change constructively if we have a fundamentally distributed, secure currency.

Speaker 1: So the reality is that cryptocurrency is just a better version of money. But the question is, will big corporations adopt it? Sharma thinks that it’s inevitable at some point in time that they will. He said eventually these retailers will want to do it because the ability to eliminate credit card fees and the ability of behalf of the consumer to prevent fraud, these are hugely positive aspects of adopting some kind of cryptocurrency. So it’ll tip and quotes. I personally think that the main thing before we see bigger corporations adopting Bitcoin will be stability and the price. As Bitcoin gets more and more popular and matures with age, we may see more stability and its price. And then. That’s when you see those larger companies using it. That’s my opinion and saying that we have already seen some big names who do use Bitcoin as a form of payments. Microsoft, AT&T, even KFC are now accepting Bitcoin. So it’s transitioning maybe even faster than some people think. Now, one of the things that any good investor should do is look for patterns when it comes to investments. And when I say patterns, I mean patterns of success. For example, if you want to be a top sportsman, what qualities did the successful sportsman in history all have in common? If you want to be the president, what traits did the most successful politicians have when it comes to business and making investments? What patterns can you see in high growth companies before they become uber successful? Now, Cockermouth, I don’t know if you guys know this. He used to work at Facebook way back in 2007 when I was just a fledgling company. He got asked if he saw any growth patterns between Facebook 14 years ago and Bitcoin today.

Speaker 2: Yeah, absolutely. You know, one of the projects that I worked on very early on was our platform. And, you know, we had a way of like looking at our platform API usage to kind of think about what was happening in the ecosystem as a corollary to what would happen with user growth. And we’ve done applied and, you know, we’ve been doing a bunch of that same analysis here and we see a lot of very similar patterns. And I think that’s really constructive. So, you know, when you look at sort of just like like, you know, Bitcoin and sort of like its distributed use, it’s really impressive the amount of people that are now using it and using it like meaning like like like developers writing to. And I think that’s really

Speaker 1: when you look at the amount of people adopting it, talking about it and investing in it, even making YouTube videos on it, you can see that it is growing in popularity and these are all good signs for Bitcoin. But of course, the currency has a lot of doubters and some even more than doubters. Some just totally disagree with Bitcoin as an investment is one of those people. Which is unfortunate for me because I’m a big fan of this guy is Warren Buffett. Buffett told CNBC cryptocurrency he’s basically have no value and they don’t produce anything. I don’t have any cryptocurrency and I never will. When they asked Buffett’s right hand man, Charlie Munger, on his thoughts on Bitcoin, he had even more choice words to say. He called it a turd, adding that trading crypto currencies is just the Mancia Bitcoin is worthless artificial gold, he told CNBC. Even the well-respected Bill Gates is not a fan of Bitcoin, he said. I would short that if there was an easy way to do it. So that’s three big power lifters in the investing world, who, to say the least, do not like Bitcoin or any cryptocurrency, as a matter of fact. But your math, even though he respects these guys, he disagrees with all of them. In effect, so do I. Jamous said, look, not everybody is right all of the time. And I think that we have to acknowledge that we all have biases. And I’m a disciple of Buffett and Manga. And one of the things that they have said for years is you define your circle of competence and stick to that buffer among Bitcoin and cryptocurrency is not really in their circle of competence. They may be great people to go to when it comes to stock investing, but when it comes to technology and cryptocurrency, it may not be in their wheelhouse of expertize. At the end of the day, we all need to make up our own mind on any investments that we make. So what you can do is weigh up all of the positives on Bitcoin. What are the Bazaine then? Compare it to what the bears are saying. Then just make your own decision. It’s so important when it comes to investing, but I personally think Bitcoin has a lot of advantages to it that outweigh the disadvantages. As Narvo Ravi Cunt’s another great investor, says, future generations will read history books about primitive societies in which the global supply of money was set. A bi weekly committee meetings, a.k.a. the Fed, who constantly chose to print money to solve all of our economic problems. What this does is it kills and changes the dollar.

As Narval says, Bitcoin cannot be coerced. That’s why it’s the most important experiments in the world. Betting against Bitcoin has been and will continue to be an expensive proposition, even if you just hold a very small percentage of Bitcoin in your. Portfolio, even one percent of it, it’s still a smart investments ahead have because if all goes to custard, let’s say stocks crash, house prices shoot down, the dollar decreases, politics become a Shambu, which they already are. Bitcoin may be the one savior in your portfolio. As Chamar says, owning a bit of Bitcoin helps him sleep well at night.

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