Reading Time: < 1 minute

The concept of scarcity, whether of precious metals or bitcoin, is one of the main factors behind the digital currency’s appreciation. As a result, Bitcoin has been compared to gold numerous times. Recently, the one who made such a comparison was billionaire investor Chamath Palihapitiya, founder and CEO of Social Capital, a venture capital firm.

Known as the Spac King, as a reference to his support for alternative investments, Palihapitiya stated that bitcoin’s appreciation stems from the fact that more and more people consider cryptocurrencies an effective form of inflation protection and see bitcoin as a digital alternative to gold.

Forecast was made in early October

According to Forbes after investing “hundreds of millions” in bitcoin, Chamath said he believes that the digital currency will replace gold. In the past, he had already stated that BTC could reach US$ 200,000, which would take its market capitalization to US$ 4 trillion.

The comments were made in early October in an interview with CNBC, even before bitcoin reached its all-time high when it surpassed US$ 66,000.

In addition to bitcoin, Palihapitiya says he invests in other cryptoassets, such as Solana. However, according to him, bitcoin is the best alternative to replace gold. “The way it was architected, BTC is the deepest Internet interaction we’ve ever seen; there’s no going back”, he said