Chamath Palihapitiya, the founder and CEO of Social Capital, a venture capital firm, has explained how bitcoin could reach 0,000 or even higher price levels in the coming months. During a podcast, Chamath clarified that considering the price performance in the previous halving cycles, bitcoin could reach that level pushed by the adoption of countries […]
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VC Chamath Palihapitiya States Bitcoin Is Ready to Cross the Chasm in 2024
Chamath Palihapitiya, venture capitalist and CEO of Social Capital, explained that 2024 will be the year for bitcoin to “cross the chasm” and become a mainstream asset. Palihapitiya believes that the approval of an upcoming slew of spot ETFs will power bitcoin to become part of the traditional financial lexicon of 2024.
Chamath Palihapitiya States Bitcoin Might Become a Mainstream Asset in 2024
Chamath Palihapitiya, CEO of Social Capital, stated that 2024 might be the year in which bitcoin grows as an investment asset. In a recent podcast, Palihapitiya stated bitcoin would be one of the most anticipated trends for 2024, having the opportunity to break into traditional finance using the upcoming ETFs as vehicles.
At the All-in podcast, Palihapitiya explained:
I think this is the most important year for Bitcoin that has ever existed we are probably days away from a series of ETFs being approved and so this is the moment for Bitcoin to use that old term ‘cross the chasm’ and really see mainstream adoption.
Crossing the chasm is a term that signals the growth of a tech product from being leveraged by early adopters, who are seen as visionaries, to being used by an early majority, who are also believers but seek to avoid the difficulties that technologies and products face in their early stages.
Palihapitiya believes that launching these spot ETFs will help the early majority comprehend the advantages of bitcoin in the current economic context, allowing parents and grandparents of this generation to understand what bitcoin is, presenting an easy way for them to purchase it and own it.
If the U.S. Securities and Exchange Commission (SEC) approves the spot bitcoin ETFs proposed, Palihapitiya predicts bitcoin “will be a part of the traditional financial lexicon by the end of 2024.”
Palihapitiya has been bullish on bitcoin, stating that it could go to million and that everyone should own some, declaring he held almost 5% of all the supply available at one point.
What do you think about Chamath Palihapitiya’s remarks on bitcoin going mainstream in 2024? Tell us in the comments section below.
VC Chamath Palihapitiya Warns of Chaos in the Equity Market Due to Debt Issues
Chamath Palihapitiya, CEO of VC company Social Capital, has warned about a looming crisis in equity markets due to the issuance of low-interest debt. According to Palihapitiya, this might be the “biggest business secret hiding in plain sight right now,” as many companies won’t be able to refinance their debt, seeing their equity values collapse.
Social Capital CEO Chamath Palihapitiya Warns of Future Corporate Bankruptcies
Chamath Palihapitiya, CEO of VC company Social Capital, has warned about a crisis in equity markets that could develop as soon as 2024. Palihapitiya, whose net worth reaches billion, states that corporate America might be close to experiencing difficulties due to the issuance of debt at very low-interest rates.
Palihapitiya stated:
It turns out that companies issued a ton of short-term debt during the pandemic at close to 0% interest rates. Hundreds of billions of dollars will come due starting Jan-2024 and will need to be refinanced at much higher rates.
The investor, who qualifies this situation as the “biggest business secret hiding in plain sight right now,” estimates that the debt wall of obligations to be fulfilled next year will put a “lot of pressure” on several companies.
Refinancing Crisis
Palihapitiya, also a big Bitcoin proponent, explained many of these institutions will not be able to fulfill their debt obligations, having their equity value and operations “incinerated.” Private companies will be hit heavily due to their specific circumstances.
Palihapitiya explained:
Prepare for a bunch of companies who will not be able to refinance their debt and will thus see their equity value incinerated. This will hit the private equity industry very acutely, whose core playbook involves wrapping their companies in gobs of high yield debt.
However, Palihapitiya believes there is also a silver lining behind this development, as this crisis will “create opportunities for those with capital on the sidelines to act as a buyer and recap the best of these companies.”
He expects that word of the potential corporate bankruptcy of these companies will start spreading on news sites this fall. Palihapitiya’s views coincide with other predictions that warn about a stock market crash.
Bank of America’s chief investment strategist Michael Hartnett stated in a note issued on Friday they were not convinced that the technical bull market would continue. “Still feels more like combo of 2000 or 2008, big rally before big collapse,” he concluded.
What do you think about Chamath Palihapitiya’s warnings? Tell us in the comment section below.
Why Billionaire Chamath Palihapitiya Invested In The Solana Ecosystem
A top performer in the crypto market, Solana (SOL) continues to attract attention from institutional investors and strengthen its fundamentals for future gains. In that sense, the ecosystem build on top of this network seems poised to become the prime contender to take over a portion of Ethereum’s market share.
Related Reading | Solana Breaks Barrier, Why It Could Still Climb 4x From Here
Billionaire and early Bitcoin investors Chamath Palihapitiya recently revealed a co-leading position in Syndica, a Solana’s infrastructure developer, seeding round. The investment was made via Social Capital, Palihapitiya’s venture capital firm.
The company managed to raise over million. The funds will be used to build “the scalable developer infrastructure for the thriving Solana ecosystem”, as Palihapitiya said via Twitter.
Alongside Social Capital, the round saw participation from major names in the industry such as crypto exchange FTX CEO Sam Bankman Fried with his investment firm Alameda Research. Bankman Fried has been making notoriously public his position in SOL.
In addition, Jump Capital, Kindred Ventures, Solana Ventures, Ox Labs, Messari’s Ryan Selkis, CoinShares, DeFiance Capital, Spartan Group, MGNR, Resolute VC, and Untamed Ventures, and others also participated in the round, according to a press release. CoinShares’ CSO Meltem Demirors commented the following on her firm’s investment in Syndica:
(…) delighted to back Syndica_io’s seed round via CoinSharesCo Ventures as they bring robust, scalability-focused developer infrastructure to the B and growing Solana ecosystem.
Related Reading | Solana Drops Close To 20%, Imminent Rebound Or Start Of Correction?
Building The Future Of The Internet On Solana
The release claims that the SOL ecosystem lacks a bridge that allows it to connect the applications with the network itself. In order to increase the blockchain’s scalability, Syndica is planning to create a Cloud-like infrastructure.
The company was founded by Danial Abbasi and its CEO Ahmad Abbassi. The improvements to the scalability of the Solana ecosystem will be made via RPC nodes.
These components will operate as intermediaries between the network and the dApps “allowing them to read and write data to the blockchain”. In addition, the company will provide “a suite of features”, such as RPC usage analytics, advanced logging, and others.
According to the release, the founders envision becoming “the Cloud of Web 3.0”. Abbassi said the following about their recent seed round:
What excites us most is the opportunity to bring in the next generation of Web 3.0 developers by creating an experience that makes Web 2.0 developers feel at-home. We think that migration is a one trillion-dollar opportunity, and we will play a central role in it.
Related Reading | Solana V2 Is Imminent: Velas’ First DEX Is Now Live, With 40 More Projects Incoming
SOL has experienced a 200x price rally in over a year. The network has also seen a massive explosion in terms of developer interest and user activity in a two-month period. Palihapitiya said:
Web 3.0 is ushering in a revolution of the internet, and developers are on the cutting edge of this change. Syndica is making it as easy to build in the Solana ecosystem as it is to build in Web 2.0, and we’re excited to support this journey.
As of press time, SOL trades at 5 with a 10% rally in the daily chart.
SOL on a rally in the daily chart. Source: SOLUSDT Tradingview