Chamath Palihapitiya, a US billionaire, is urging countries outside of the US to consider adopting Bitcoin alongside their national currencies in a dual-currency system. He believes that Bitcoin has the potential to replace gold and that if it follows its post-halving price cycle, it could reach $360,000 by April 2022.
For decades, the US has used the dollar as a means to maintain its global dominance, solidifying its position as a superpower. Palihapitiya suggests that in order for other countries to break free from this monopoly, they should explore the integration of Bitcoin into their financial systems alongside their national currencies.
During a recent episode of the All In podcast, Palihapitiya discussed the role of Bitcoin. He acknowledged that certain countries, like the US, will always reject Bitcoin due to its opposition to established legacy institutions, regardless of its price or mainstream adoption. However, an increasing number of countries are considering the adoption of a dual-currency system.
These countries would view their local currency and Bitcoin as essential components of their financial systems. They would use their local currency for day-to-day transactions, while Bitcoin would be utilized for purchasing assets with long-term value. Palihapitiya sees this concept as a powerful solution.
This concept is not new, as countries like Russia and Iran have already shown interest in Bitcoin and stablecoins as alternatives for global trade, aiming to reduce their reliance on the US dollar. Additionally, they have explored the development of central bank digital currencies (CBDCs), with China leading the way with its digital yuan.
In addition to discussing the integration of Bitcoin into national currencies, Palihapitiya made a bold prediction about its price. He believes that Bitcoin will surpass $1 million within the next 18 months. Currently trading at around $69,000, Bitcoin has gained 2.2% in the past day and experienced a significant increase in trading volume.
Analyzing the previous post-halving cycles, Palihapitiya concluded that Bitcoin tends to experience significant price increases within 18 months after each halving event. By averaging the percentage gains from the two most recent cycles, he projected that Bitcoin will reach $99,643 by mid-October, $238,000 by mid-January, and $362,000 by April. If this pattern continues, Bitcoin could reach $1.14 million within 18 months.
It is clear that Palihapitiya sees great potential in Bitcoin as a global currency and store of value. His insights and predictions highlight the increasing interest and adoption of Bitcoin by countries around the world.