VC firm Social Capital CEO — and one of the most outspoken investors in Silicon Valley — Chamath Palihapitiya has argued out that bitcoin is the sole best hedge against the traditional financial system.
Chamath — State Warriors NBA Team board member and stakeholder — shared this view on July 9 to a panel than was on Squawk Box — a CNBC show. He also expounded on the cryptocurrency perspective, stating:
“It [bitcoin] is the single best hedge against the traditional financial infrastructure. Whether you support fiscal and monetary policy or not, it doesn’t matter: this is the shmuck insurance under your mattress.”
In response, the CNBC hosts admitted that they did not recognize cryptocurrencies and accompanying technology early enough.
One of them even remarked that he realized the inherent value of distributed ledgers on government services when the price of bitcoin was at $9,000.
The traditional banking world was once more shaken this week after the bullish breakthrough that made bitcoin to pass the $13,000.
Deutsche Bank — which is opposed to cryptocurrencies as it embraces the old systems — intends to carry out a 40% risk-weighted assets reduction of its trading operation and also lay off 18,000 jobs.