Is bitcoin (BTC) really a good alternative to the current financial system?

Bitcoin (BTC) has been in the spotlight since the collapse of Silvergate, Silicon Valley and Signature banks. The crypto has also seen a sharp rise after the fall of the big three US banks. Many crypto players then declared that it could be a good alternative to the global banking system. Billionaire venture capitalist Chamath Palihapitiya gave his thoughts on the matter during a new episode of the All-In Podcast. Here’s what one of the first investors to embrace the flagship crypto thinks.

Here’s Why Bitcoin Wouldn’t Be a Legitimate Alternative to the Global Financial System

After the recent collapses of major US banks, Bitcoin has been described as an escape from the banking crisis. But billionaire Chamath Palihapitiya doubts this is really the case. The venture capitalist questions the legitimacy of crypto as an alternative to the current financial system. He bases his doubts in particular on the fact that the number of bitcoin users in the world is low.

If we consider the total number of non-zero bitcoin wallet addresses in the world, and let’s be extremely generous and say it’s a hundred million, there are still seven billion people in the world . Also, I believe that anyone who tries to talk about the fragility of the US and global banking system is right. […] But every time they try to link it to bitcoin, they go crazy because all they do is talk about their book.», has explained Palihapitiya.

Palihapitiya also thinks that the price of bitcoin would be higher if it could actually replace fiat currency. He said to this effect:If bitcoin or crypto-assets in general were really a legitimate way out and salvation from US dollar hegemony and all that stuff, why isn’t bitcoin at least $35,000 the token right now? It barely exceeds $28,000. He didn’t move much“.

Chamath Palihapitiya argues that consumers are not investing in bitcoin to hedge their fiat currency exposure. He added that the flagship crypto is only “not widely available nor widely adoptable“. Bitcoin is also not widely used. Despite everything, Palihapitiya remains convinced that he has value. “I think it has its place in a wallet, but I think that by connecting these dots, we miss the point“, he underlined.

Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of newsletter daily and weekly so you don’t miss any of the essential Tremplin.io!

Similar Posts