Chamath Palihapitiya, the highly successful entrepreneur and venture capitalist says that he is still bullish on Bitcoin, not so on Ethereum, but he is also building a portfolio of NFTs.
The former top Facebook executive is still extremely bullish on Bitcoin and first began investing in the top cryptocurrency around 2014. When asked where Bitcoin is going in a recent Bloomberg interview he replied:
“Where’s it going? It’s probably going to $100,000, then $150,000, and then $200,000. In what period? I don’t know, 5 years, 10 years, but it’s going there”
He believes that the existing financial system is extremely fragile and that“our leaders are not as trustworthy as they used to be”. He also said:
“Bitcoin is a canary in a coalmine for a completely virtual, largely anonymous (and we can debate whether that’s good or not) financial reality”
When asked which digital assets he was a holder of, Palihapitiya stated:
“I am building a fairly sizeable portfolio of what are called NFTs, some digital art, some virtual trading cards, and, these may sound crazy to some, but I do think that’s the next frontier of digital currency and digital assets”
Palihapitiya said that he would be publishing this portfolio so that all would be able to see exactly what he was buying.
It does seem a little odd that Palihapitiya is so negative on Ethereum, given that most NFTs are based on the Ethereum blockchain. He believes that the race to become the number one blockchain is still very much on and that he would only buy the one that is about to win.
According to Jamie Tree, an investment analyst with his own YouTube channel:
“The NFT market reminds me a lot of the ICO bubble back in 2017, when virtually any initial coin offering was pumped to insane valuations.”
He also stated:
“I think there is a huge future for NFTs, however, to invest in random pieces of artwork and collectibles poses too high a degree of risk for me personally.”
NFTs are certainly the buzzword for these present times. They are definitely selling for quite sensational valuations. Notwithstanding, could this just be a passing mania? There is a lot more use to NFTs than just artwork and collectibles so it will be interesting to see where this market goes.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.