Bitcoin is solidifying its status as a safe-haven asset against rising inflation, according to billionaire and Social Capital founder Chamath Palihapitiya.
In his view, the leading cryptocurrency has the potential to replace gold.
Bitcoin investors should not focus on its price movements, as the asset is destined to play a unique role over the next 50-100 years, Palihapitiya added.
“You cannot trade digital gold. Any such attempt […] is bound to result in even greater losses,” he explained.
The billionaire is convinced that a gradual shift away from precious metals as a rational economic hedge has begun.
Palihapitiya recalled expectations of countries using bitcoin alongside national currencies. This approach would allow their citizens to offset rising consumer prices.
“More and more countries are becoming bimonetary, believing that both fiat and digital gold are needed,” he noted.
Back in June, the venture investor predicted bitcoin would reach $500,000.